Q4-2017 Dividend – The Dividend Report

As many of my readers may know, I love dividend stocks and believe dividends provide a great source of passive income. Quarterly, I provide updates regarding my dividend income, dividend goals and if I buy dividend stocks.

Using ‘The Dividend Report‘ section of my blog, I share the progress of my goals. I also share dividend growth stock ideas and thoughts. Additionally, I will share the rational behind any future purchases or sales. Dividends are truly a wonderful thing.

The Dividend Report

For over a year, I have been working towards the same goal. I would like my average dividend income to provide $1,500/month. As I solidify my path to financial independence, I want dividends to be 25-33% of my monthly retirement income. However, this goal may be revised upwards over time.

Q4-2017 Dividend Income

This may be the most excited I’ve been to share a dividend report. Quarter 4 of 2017 (Q4) marks the end to another year. This means a lot of things.

I now have 5 years of dividend data! I cannot believe I’ve been tracking my progress for so long.

My portfolio also generates the most income in Q4. A few of the funds I own pay larger dividends at the end of the year in addition to their regular payment.

This was a great year for my dividend income. Ten of my stocks increased their dividend payouts. Two stocks are paying the same amount and one cut their dividend. This means I got paid more money to do nothing. Thats right I made more money for doing absolutely nothing.

Apple ($AAPL): 10.53% increase.

BP ($BP):  no change.

Citi ($C): 100% increase.

Disney ($DIS): 7.69% increase.

Gilead ($GILD): 10.64% increase.

Gaslog LTD ($GLOG): no change.

Corning ($GLW): 14.81% increase.

General Electric ($GE):  -50% decrease.

Kraft Heinz ($KHC): 4.17% increase.

Raytheon ($RTN): 8.87% increase.

Starbucks ($SBUX): 20.0% increase.

Verizon ($VZ): 2.08% increase.

Wells Fargo ($WFC): 2.63% increase.

The graph below shows my dividend income history since 2013:

guy on fire

The table below shows my dividend history since 2013:

Dividend Report

2016 Dividend Income vs 2017 Dividend Income

This year my total dividend income was $3,651.28. Last year, in 2016, I made $2,827.67 from dividends. That means I made $823.61 more this year from dividends. This is a 29.1% increase; I am very happy with this increase.

There are two main reasons for the increase. First, I maxed out my 401k. This was the second year in a row of this goal. Regularly contributing to a 401k is one of the 6 steps to a 6-figure net worth.

Second,  10 of my 13 stocks increased their dividend payout. This means I own the same amount of shares. Each share now pays me more for owning the same great company. How awesome is that?

My average monthly dividend income is now $304.27 ($3,651.28 / 12 months = $304.27), which is 20.28% of my current goal of $1,500/month. Previously I was at 16.94% of my goal. For 2018, I am hoping to significantly improve my dividend income. I would like to reach my dividend goal by no later than 2019. This is a lofty goal but worth a shot.

This quarter vs. last quarter

My Q4-2017 dividend income was $2,092.46. Last quarter (Q3-2017), my income was $537.76. This is a $1,554.70 or 289.11% increase from the previous quarter. This is misleading for a few reasons. A handful of my funds do not pay a dividend in Q3. As a result the same funds pay multiple dividends in Q4. Some of the funds also provide a larger dividend in Q4.

In past four quarters, my total dividend income was $3,651.28 (~$584 increase annually). I am proud to report this is a continuing trend upwards. This growth is fueled by my individual stocks increasing their dividends and continuing to invest (mostly via index funds).

Q4-2017 vs Q4-2016

Last year’s Q4 dividend income was $1,507.92. This quarter I earned $2,092.46. This is $584.54 or 38.76% more compared to last year.

New Purchases

I did not buy any individual stocks during the past quarter. I am considering buying Allergan ($AGN). The company’s stock price has fallen significantly. The firm offers some great products like botox, which has dozens of uses. The company also has a competitive line of generic drugs. Allergan has an interesting pipeline of drugs being developed as well.

The valuation is relatively cheap. The stock currently trades at ~10 x forward P/E. There are some legal headwinds still facing the stock. However, the risk reward seems modest and the company recently started paying a dividend.

I may also consider buying more General Electric ($GE) if the price continues to drop. Long term I believe the company will be fine. Short term, things will be rough. Looking to add to my position if the share price drops below $16.

I am still buying index funds as I am automating my way to financial independence. However, I may consider buying vanguard dividend growth fund.

 

15 thoughts on “Q4-2017 Dividend – The Dividend Report

    • Thanks! The visual really helps show how far my Dividend income has come. Can’t wait to see what the next few years bring! Thanks for reading

  1. I really enjoy these blog posts. I calculated my 2017 dividends at about $600. Trouble is this is just from my Roth IRA. My 401(k) is invested in Investment Trusts which done report dividends.

    I’ll need to keep increasing my IRA and Taxable positions to get a better understanding, and try and estimate passive income from my 401(k)

    • Glad you enjoyed the post, David. $600 is a solid number for dividends. That’s interesting about the investment trusts. No information in their reports?

  2. Nice summary! How long have you owned your GE stock? We just purchased shares of GE this year, January 2018. We started purchasing individual Dow stocks in January 2017 to get dividends. Not a bad year last year! Hoping this year is just as good or better!

    • Thanks D2R – I’ve owned GE for years. Bummed about the Dividend cut but still holding on. Long term the company will be fine. 2018 looks to be a great year. I’ll have some purchases to share for Q1. New purchases combined with maxing out my 401k & buying index funds will def increase divvy income.

  3. Great job! Coincidentally $300 a month is about what my various side hustles are bringing in, and I like to equate it to what they pay off for me to make it seem more substantial. For instance, $300 a month pays pretty much all of my utilities each month (internet, gas, electric, water). So to me it’s like “those expenses are gone, covered by hustle!”

    Keep it up!

  4. Wow very impressive! So fun to see the progression over 5 years! I need to learn more on dividend paying stocks and the strategy.

  5. I finally bought GE and wondering if I made the right decision! Oh well I am in it for the long term:)
    I only started keeping track of my dividends last year and it is very motivating to see the progress!
    Great job!

  6. Nicely done! I’ve recently been looking a little more into dividend growth investing as well. I think that’s a great source of passive income as no matter how the stock does, you’ll still get that payout.

    Not sure if you’ve mentioned this before but do you include dividends from your 401k in this report? If so what would you say is the split between your taxable and tax free dividends? Just curious as I know the taxes on the dividends can add up if they’re in taxable accounts. (Maybe not in retirement with a lower total income, but for now at least)

    Great work, looking forward to following along!

  7. Great progress you’ve made on your dividend income. Isn’t it nice to see the progression over 5 years? I have a similar graph of our dividend income and seeing the graph has kept me very motivated.

  8. Great progress and persistence (with the tracking as well). I love dividends. Tangible proof that I do in fact own a piece of the companies. Are you doing this in your taxable or pre-tax accounts? You are reinvesting all dividends right now, yes?

    • The dividends are spread out through 401K, Roth and brokerage accounts. Some dividends I DRIP (immediately reinvest). Other stocks I prefer to collect the cash and buy other stocks.

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