The Dividend Report Q4-2019

As many of my readers know, I love dividend stocks and believe dividends provide a great source of passive income. Quarterly, I provide updates on 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 rationale behind any future purchases or sales. Dividends are truly a wonderful thing.

The Dividend Report

For over three years, I have been working towards the same goal. I want my monthly dividend income to average $1,500/month and provide 25-33% of my monthly retirement income. This goal may be revised upwards over time. I track my dividend income with Personal Capital and store the data on a Google Sheet.

In case you were wondering, real estate will provide the rest of my retirement income.

Q4-2019 Dividend Income

The S&P experienced a wild ride in the past quarter. The market was volatile and had a number of swings up and down. The S&P notched a 10.4% gain for the fourth quarter of 2019. Year-to-date, the S&P 500 has advanced 28.9%, which is an exceptional performance.

This is my 7th year of tracking dividend data and I continue to make great progress.  I cannot believe I’ve been tracking my progress for so long. It’s true what they say, what gets measured gets improved. It’s fun to watch the progress I’ve made over time.

The graph below shows my dividend income history since 2013:

The table below shows my dividend history since 2013:

As you can see from the chart and graph, my dividend income has slowly and gradually increased over time.  Regular income that increases above the rate of inflation is one of my favorite reasons to invest in dividend growth stocks. You can also see the presence of exponential growth in my dividend income.

Q4-2019 vs Q4-2018

Last year’s Q4 dividend income was $2,458.38. This quarter I earned $3,862.46. This is $1,404.08 or 57.11% more compared to the same time period last year. Imagine if your job paid you 50% more this year. There are two main reasons for the large increase in my dividend income. First, I have more money invested. Second, most of my stocks keep increasing their regular dividend payments. I also DRIP (dividend reinvestment plan) some of my dividend stocks. This means each quarter I own more shares of the same stock and collect even more dividends.

This quarter vs. last quarter

My Q4-2019 dividend income was $2,458.38. Last quarter (Q3-2019), my income was $1,641.76. This is a $2,220.70 or 135.26% increase from last quarter. The extreme growth is a bit misleading. A few of my funds do not pay dividends in the third quarter. Likewise, I received a couple of extra dividend checks in the 4th quarter and also had more capital invested.

My average monthly dividend income is now $705.07 ($8,460.86 / 12 months = $705.07), which is 47.00% of my goal of $1,500/month. Previously, I was at 39.20% of my goal. I hope to build off this success and get even closer to my goal next year.

I hope to build on my dividend success in 2020 and finally reach my goal of $1,500/month by the end of 2020. I will continue to offensively build wealth and invest regularly. I cannot wait to see how compounding continues to work in my favor.

New Purchases

I purchased another 100 shares of AT&T in Q4-19. The company continues to execute on its plan which includes paying down debt and increasing free cash flow. I expect the company will introduce a share buyback in the coming months. Additionally, I expect a very modest dividend increase. Furthermore, I like how the company is positioned in the 5G space, the streaming wars, and legacy business. The company provides a great yield and I’ve enjoyed strong capital appreciation.

I purchased another 100 shares of KMI. The company continues to deliver on its plan, generates great cash flow, and has the capability to continue increasing the dividend.