We may earn money or products from the companies mentioned in this post.
Earning dividends has been the most successful form of side income for me since starting The Money Sprout. Since I continue to invest in only the best dividend 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 Money Sprout Index.
Here are my results for July, 2014 –
2014 July Dividend Income Results
Even though only 4 stocks I own paid out a dividend in July, I still saw growth in my portfolio. This month continued to show that I am slowly building a sustainable income stream by owning some of the best managed companies in the world!
Note – All of the stocks currently in my dividend portfolio pay quarterly dividends, which means my monthly totals really fluctuate. 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.
July 2014 Dividend Income – $77.98
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 July, along with the number of new shares added from DRiP –
- Cincinnati Financial (CINF) – $30.91 (.64 shares)
- The Coca-Cola Company (KO) – $2.89 (LOYAL3 – No DRiP)
- Lockheed Martin (LMT) – $35.71 (.22 shares)
- Sysco Corporation (SYY) – $8.47 (.23 shares)
New Capital Invested in July
My investment philosophy right now is to build my portfolio through dividend reinvestment’s and from new capital. 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.
Just like past months, I was able to take advantage of my automatic monthly investment plans in July. 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.
At the beginning of the year I set a monthly goal to invest at least $850 in new money into the market. I did not hit the $850 goal in July and actually decreased significantly from June.
Here are the new investments I made in July –
- $50 automatic investment in Intel (INTC) – 1.61 shares
- $25 automatic investment in Coca-Cola (KO) – .59 shares
- $50 automatic investment in Microsoft (MSFT) – 1.19 shares
- $50 automatic investment in Verizon (VZ) – .97 shares
- $50 automatic investment in WalMart (WMT) – .66 shares
- $250 automatic investment in Exxon Mobile (XOM) – 2.42 shares
Note – As with all of my recent purchases, all of my stock buys in July were from automatic monthly investments. Unfortunately, due to policy changes at LOYAL3, I had to decrease a few of my automatic investments to $50.
The total amount of new capital invested in July was – $475, which was below my goal of $850 per month. 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
New 2014 Investments – $5,447.41
The dividend income earned in July ($77.98) was not as high as last month. Back in June I recorded my highest monthly total to date, but also had 11 stocks in the portfolio pay out a dividend compared to 4 in July.
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 July, I was able to raise my 3 month rolling average to $78.12, which is an increase of $.12.
My total dividend income earned for 2014 so far (January to July) is – $523.05.
Full Disclosure – At the time of this writing, I owned shares in the following stocks noted in this post – CINF, INTC, KO, LMT, MSFT, SYY, 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.