Dividend Income – May 2014

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One of my most successful income streams found in The Money Sprout Blueprint is from dividend stocks. Month after month I continue to generate dividends from this awesome income stream. As I continue to reinvest dividends and invest new money each month, I have seen tons of growth from this income source.

While I wouldn’t want to put all my eggs in one basket, building a portfolio of dividend paying stocks is a great way to diversify my income.

Provided I invest in only the best dividend paying stocks, I am confident this income source will continue to grow at a rapid pace over time.

Don’t believe me? Just check out the dividend income I have earned so far.

Here are my results for May, 2014 –

2014 May Dividend Income Results

Each month I will provide details on my dividend income earned from stocks found in The Money Sprout Index. I received a dividend payment from only 3 stocks found in my portfolio during May. The months of February, May, August, and November are traditionally my lowest payout months because only 3 companies I own follow this quarterly cycle. These 3 companies combined for a dividend payout of $37.48 in May.

Note – Since all the stocks I currently own pay quarterly dividends, I don’t focus on monthly totals as much as some other metrics. In order to track my dividend growth each month, I focus on a 3 month rolling average instead. As long as that value is increasing each month, I know that my portfolio is growing.

May 2014 Dividend Income – $37.48

Note – As you will see below, I reinvest my dividend income into new shares of stock using DRiP. The only exceptions are stocks that I purchase through my LOYAL3 account – which does not currently offer dividend reinvestment. During the month of May, I did not receive any dividends from companies owned in my LOYAL3 account.

Here is the breakdown of dividend income (by stock) in May, along with the number of new shares added from DRiP –

  • The Clorox Company (CLX) – $22.18 (.25 shares)
  • Lowe’s Companies Inc. (LOW) – $4.34 (.17 shares)
  • The Proctor & Gamble Company (PG) – $10.96 (.13 shares)

New Capital Invested in May

In order to accelerate the growth of my dividend income portfolio, I need to continue to invest new capital. Every month I plan to leverage my automatic monthly investment plans to help accumulate stock in a variety of companies. Also from time to time, I will make a lump sum investment in a dividend stock that is attractively priced.

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 May –

  • $150 automatic investment in Intel (INTC) – 5.73 shares
  • $25 automatic investment in Coca-Cola (KO) – .61 shares
  • $200 automatic investment in Microsfot (MSFT) – 5.07 shares
  • $50 automatic investment in Verizon (VZ) – 1.00 shares
  • $50 automatic investment in WalMart (WMT) – .63 shares
  • $250 automatic investment in Exxon Mobile (XOM) – 2.48 shares

Note – As with most months, all of my purchases in May were from automatic monthly investments. I did not make any lump sum investments during the month.

The total amount of new capital invested in May was – $725, 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

New 2014 Investments – $4,247.41

Final Thoughts

While my dividend income from May was not as high as March or April, I still raised my 3 month rolling average to $73.46. That is an increase of $.60 from April. As I mentioned earlier, as long as this number (3 month rolling average) continues to increase, I know that I am growing my dividend income.

My total dividend income earned for 2014 so far (January to May) is – $326.16.

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.

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