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Earning dividends every month from stocks has been my most consistent form of side income. As long as I am investing in only the best dividend paying stocks, my monthly income over time will continue to increase.
Income growth from this stream comes from two different sources. Since I am still in the allocation phase of building my portfolio, I reinvest all dividends earned back into new shares of stock. Also known as DRiP, this tool provides a great opportunity to compound my income into new shares of stock.
The second method for growing my portfolio is from new capital invested. Regardless of what the overall market is doing, I am consistently investing new money into awesome dividend stocks.
Here are my results for June, 2014 –
2014 June Dividend Income Results
At the end of every month, I provide details on income earned from our dividend stock portfolio. Over half of the stocks I own paid out a dividend in June, making it the highest monthly total ever!
Note – All of the stocks I currently own pay quarterly dividends, which means my monthly totals really fluctuate. That is why I don’t focus on monthly totals as much as my 3 month rolling average. As long as that value is increasing each month, I know that my portfolio is growing.
June 2014 Dividend Income – $118.91
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 June, along with the number of new shares added from DRiP –
- Aflac Inc. (AFL) – $5.50 (.09 shares)
- ConocoPhillips (COP) – $12.91 (.16 shares)
- Consolidated Edison Inc. (ED) – $20.86 (.38 shares)
- Intel Corporation (INTC) – $6.46 (.11 shares Fidelity and $3.59 in cash from LOYAL3)
- Johnson & Johnson (JNJ) – $12.02 (.12 shares)
- McDonald’s Corp. (MCD) – $26.57 (.26 shares)
- Microsoft Corporation (MSFT) – $5.42 (LOYAL3 – No DRiP)
- Norfolk Southern Corp. (NSC) – $13.24 (.13 shares)
- Target Corp. (TGT) – $9.09 (.16 shares)
- Wal-Mart Stores Inc. (WMT) – $1.87 (LOYAL3 – No DRiP)
- Exxon Mobil Corp. (XOM) – $4.97 (.05 shares)
New Capital Invested in June
I am still in the allocation phase of building my dividend income portfolio. Therefore, I need to continue to invest new capital at any chance I can get.
As in the past, I was able to take advantage of my automatic monthly investment plans this month. These plans are a great way to accumulate stock in a variety of companies with minimal capital to invest.
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 Mary, but am on track for 2014 based on previous investments.
Here are the new investments I made in June –
- $150 automatic investment in Intel (INTC) – 5.41 shares
- $25 automatic investment in Coca-Cola (KO) – .61 shares
- $200 automatic investment in Microsfot (MSFT) – 4.98 shares
- $50 automatic investment in Verizon (VZ) – 1.02 shares
- $50 automatic investment in WalMart (WMT) – .65 shares
- $250 automatic investment in Exxon Mobile (XOM) – 2.46 shares
Note – As with all of my recent purchases, all of my stock buys in June were from automatic monthly investments.
The total amount of new capital invested in June was – $725, which was below my goal of $850 per month but consistent with prior months. 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
New 2014 Investments – $4,972.41
The dividend income earned in June ($118.91) was the highest monthly total to date! A total of 11 stocks in my portfolio paid out a dividend last month, which is the reason for my highest month yet.
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 June, I was able to raise my 3 month rolling average to $78.00, which is an increase of $4.54.
My total dividend income earned for 2014 so far (January to June) is – $445.07.
Full Disclosure – At the time of this writing, I owned shares in the following stocks noted in this post – AFL, COP, ED, INTC, JNJ, KO, MCD, MSFT, NSC, TGT, 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.