Dividend Income – June 2015
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This year is now more than half way over! Hard to believe really, but with June in the record books, we are inching closer to 2016.
At the end of each month, I like to give a run down of how our dividend income portfolio (known as the Money Sprout Index) is doing.
We have special news to report – June set a record for the highest dividend income ever earned from the Money Sprout Index!
While we are a really long way from hitting our goals to become financially independent, these small victories (like breaking our past record) help keep us motivated.
All of the new money that we have been investing in the market over the last 6 months is really starting to trickle down to our income results. We expect to see even more growth with our income as we close out the 3rd and 4th quarters of the year. September should break this months record and this coming December should break that record.
I can’t wait to report out these number later this year. But for now, let’s just celebrate where we finished up June.
Here is our dividend income results for June, 2015 –
2015 June Dividend Income Results
As I mentioned before, June was a record month for our dividend income results. Historically, June is one of the highest income earning months during the year based on when companies in our portfolio payout dividends.
For reference purposes, I like to look back and compare our dividend totals from the same month over the past couple of years. This helps us see the growth of the Money Sprout Index and keeps my wife and I motivated in meeting our goals.
Here are the dividend income earnings for the month of June from the past 3 years and our total for 2015 –
- June 2012 – $56.23
- June 2013 – $69.57
- June 2014 – $118.91
June 2015 Dividend Income – $182.38
June 2015 is the highest dividend income total on record for the Money Sprout Index! We have a long way to reach our long term goals, but these small milestones help keep us motivated.
As you can see from previous years results, dividend income has grown each June and has actually really taken off the past 2 years. We saw an increase of over 53% last month compared to June 2014. This is a direct result of new investments we have been making for the past 12 months.
Here is the breakdown of dividend income (by stock) in June, along with the number of new shares added from DRiP –
- Aflac Inc. (AFL) – $9.84 (.10 shares DRiP and $3.90 cash Robinhood)
- ConocoPhillips (COP) – $14.19 (.22 shares)
- Consolidated Edison Inc. (ED) – $22.47 (.39 shares)
- Emerson Electric Co. (EMR) – $ 4.70 ($4.70 cash Robinhood)
- Intel Corporation (INTC) – $11.44 (.09 shares DRiP and $8.30 cash LOYAL3)
- Johnson & Johnson (JNJ) – $13.23 (.13 shares)
- Kellogg Company (K) – $ 2.46 ($2.46 cash LOYAL3)
- McDonald’s Corp. (MCD) – $30.00 (.30 shares DRiP and $1.13 cash LOYAL3)
- Microsoft Corporation (MSFT) – $12.05 ($12.05 cash LOYAL3)
- Norfolk Southern Corp. (NSC) – $14.78 (.16 shares)
- Realty Income Corporation (O) – $ 4.74 ($4.74 cash Robinhood)
- Target Corp. (TGT) – $11.33 (.14 shares)
- Unilever (UL) – $ 1.84 ($1.84 cash LOYAL3)
- WalMart (WMT) – $ 4.71 ($4.71 cash LOYAL3)
- Exxon Mobil Corp. (XOM) – $24.60 (.29 shares)
Note – All of the dividends we currently receive are reinvested into new shares of the same stock using DRiP – except those purchased through our LOYAL3 and Robinhood accounts.
New Capital Invested in June
June was another big month for new investments with $1,000+ going into the market. We finished investing the remainder of our tax return money in June and continued making automated purchases through our LOYAL3 and Computershare accounts.
Here are the new investments we made in June –
- $295.50 lump sum investment in Johnson & Johnson (JNJ) – 3 shares
- $453.30 lump sum investment in Realty Income Corporation (O) – 10 shares
- $150 automatic investment in Microsoft (MSFT) – 3.29 shares
- $50 automatic investment in Unilever (UL) – 1.13 shares
- $50 automatic investment in Verizon (VZ) – 1.01 shares
- $150 automatic investment in WalMart (WMT) – 2.07 shares
During June, we adjusted our monthly automated investments through LOYAL3 based on current market conditions. We decided to drop our automated $50 investment in Kellogg Company (K). We increased our Microsoft (MSFT) and WalMart (WMT) investments to $150 each through LOYAL3. I think both companies offer value at current levels so we are putting more money to work each month with these stocks.
We also made our monthly $50 investment in Verizon (VZ) through Computershare. We will likely stop this investment next month as we are now incurring a $2.50 service charge – which is 5% of our investment! I can just as easily buy 1 share of Verizon stock each month through Robinhood and not pay any commission or fee.
There were two lump sum investments made in the Money Sprout Index during June to invest the remainder of our tax return money. We took advantage in Johnson & Johnson (JNJ) trading at a discount and bought 3 additional shares. We also continued to add to our Realty Income Corporation (O) holdings by adding 10 new shares.
The total amount of new capital invested in June was – $1,148.80
Here are the new investment totals for the year –
- January Investments – $475.00
- February Investments – $1,067.30
- March Investments – $652.26
- April Investments – $1,094.77
- May Investments – $4,219.12
- June Investments – $1,148.80
New 2015 Investments – $8,657.25
12 Month Forward Dividend Income
This is now the fourth month where we are tracking our 12 month forward dividend income. While this number does not guarantee any future dividends, it is a good indicator of how much income we will earn over the next 12 months.
Our 12 month forward dividend income will increase month to month as a result of 3 different factors. The first is any time we add new shares of stock (i.e. JNJ and O) to the Money Sprout Index, our future dividends should go up.
Second, any dividends that are reinvested back into new shares of stock through DRiP (i.e. XOM, ED, etc.) will increase our forward dividend income.
Finally, anytime a company raises its annual dividend – we will see a spike up.
12 Month Forward Dividend Income
- March 2015 – $1,239.21
- April 2015 – $1,288.31
- May 2015 – $1,501.44
- June 2015 – $1,570.40
Comparing the past four months, our 12 month forward income has grown by 26.7% or by $331.19!
Note – The majority of the increase between April and June was due to $5,000+ being invested. Most of these funds came from our annual tax return. While we certainly welcome the increase in future dividend income, it will not be sustainable for the remainder of the year. We expect about a $50 increase each month in future dividend income for the rest of 2015.
The dividend income earned in June ($182.38) from a collection of 15 stocks was our highest month ever!
This was an 8.3% increase compared to our previous all time high back in March ($168.33).
To date, we have earned a total of $623.52 in dividend income for 2015. At that rate, we would earn less than $1,250 in annual dividend income this year. Since our goal is to earn $1,500 this year, we have a lot of work to do over the next 6 months.
Our 3-month rolling average continues to increase each month. The average of the past 3 months makes it easier to track month to month totals. During June, we were able to raise our 3 month rolling average again, which built on what we accomplished last month. Our rolling average is now $107.86, which was an increase of $4.68 compared to May. As long as this number continues to grow, I know that we are moving in the right direction.
How was your dividend income in June? What stocks are you buying in this market?
Full Disclosure – At the time of this writing, we owned shares in the following stocks noted in this post – AFL, COP, ED, EMR, INTC, JNJ, K, MCD, MSFT, NSC, O, TGT, UL, 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.