August 2014 Dividend Income Results
We may earn money or products from the companies mentioned in this post.
The Money Sprout Index consists of 19 different dividend stocks (at the time of this writing) from 9 different sectors. This portfolio of stocks has become a sustainable source of side income for me for over the last 3+ years.
As I continue to invest in only the bestnd paying stocks, I have seen this income stream grow year after year. At the end of each month I report out the dividend income earned, new money invested, and any additional changes made to the portfolio.
Here are my results for August, 2014 –
2014 August Dividend Income Results
During the calendar year, August is generally one of my slowest months for dividend income. Since all of the stocks I currently own pay quarterly dividends, my monthly totals really fluctuate. For example, just last month I earned over $75 in dividend income and the month before that it was over $110.
This month I didn’t even it the $50 mark, but that doesn’t mean my portfolio isn’t growing. Instead of comparing my dividend income each month, I focus on a 3 month rolling average. As long as that value is increasing each month, I know that my portfolio is growing.
August 2014 Dividend Income – $41.10
Note – All of my dividends I currently receive are reinvested into new shares of the same stock using DRiP. The only exceptions are stocks that I purchase through my LOYAL3 account – which does not currently offer dividend reinvestment.
Here is the breakdown of dividend income (by stock) in August, along with the number of new shares added from DRiP –
- The Clorox Company (CLX) – $23.30 (.27 shares)
- Lowe’s Companies Inc. (LOW) – $5.56 (.12 shares)
- The Proctor & Gamble Company (PG) – $11.04 (.14 shares)
- (Verizon Communications Inc. (VZ) – $1.20 (.02 shares)
New Capital Invested in August
In order to accelerate the growth of my dividend income portfolio, I need to continue to invest new capital. Reinvesting dividends into new shares of stock using DRiP helps me grow my portfolio, but not fast enough. Since I am still in the allocation phase of building my dividend income portfolio, I need to continue to invest new capital at any chance I can get.
How do I remember to invest new capital each month? By taking advantage of automatic monthly investment plans. These plans are a great way to accumulate stock in a variety of companies with minimal capital to invest and with very little investment costs.
Here are the new investments I made in August –
- $50 automatic investment in Intel (INTC) – 1.51 shares
- $25 automatic investment in Coca-Cola (KO) – .63 shares
- $50 automatic investment in Microsoft (MSFT) – 1.17 shares
- $50 automatic investment in Verizon (VZ) – 1.01 shares
- $50 automatic investment in WalMart (WMT) – .68 shares
- $250 automatic investment in Exxon Mobile (XOM) – 2.51 shares
Note – As with all of my recent purchases, all of my stock buys in August were from automatic monthly investments.
The total amount of new capital invested in August was – $475. I originally set a goal to invest $850 per month during 2014, but I wasn’t able to sustain that type of investment. Here are my new investment totals for the year –
- January Investments – $1,747.41
- February Investments – $475.00
- March Investments – $575.00
- April Investments – $725.00
- May Investments – $725.00
- June Investments – $725.00
- July Investments – $475.00
- August Investments – $475.00
New 2014 Investments – $5,922.41
The dividend income earned in August ($41.10) was much lower than the previous 2 months. Since I only had 4 stocks payout a dividend this month, my monthly dividend income dropped. This has been a typical pattern with my monthly results since I started reporting them.
While looking at my monthly dividend totals can be helpful, I prefer to focus more attention on the 3 month rolling average. Since all of the companies I own pay a quarterly dividend, the average of the past 3 months makes it easier to track month to month totals. During August, I was able to raise my 3 month rolling average to $79.33, which is an increase of $1.21.
My total dividend income earned for 2014 so far (January to August) is – $564.15.
Full Disclosure – At the time of this writing, I owned shares in the following stocks noted in this post – CLX, INTC, KO, LOW, MSFT, PG, VZ, WMT, and XOM. The material above is not a recommendation to buy. Please do your own research on a company before deciding to invest.