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By investing in the best blue chip dividend stocks, I have built a solid income stream that is sustainable. Every month I earn dividend income from my holdings.
As each month passes, I continue to reinvest my dividend income back into new shares of stock. I am also investing new capital into dividend stocks, which is helping to grow this income stream.
Every month I report out the dividends I have earned and where I am investing new capital.
Here are my results for October, 2014 –
2014 October Dividend Income Results
Just last month I set a new personal record for dividend income with $133.83. While not as high, I brought in just under $80 in dividends during October. This may seem like a significant decrease from the prior month, but it is not. Since all of my dividend stocks pay on a quarterly cycle, there are plenty of ups and downs in income from month to month.
As long as my 3 month rolling average is increasing (see below), I know that my overall portfolio income is growing.
October 2014 Dividend Income – $79.16
Note – All of my dividends I currently receive are reinvested into new shares of the same stock using DRiP – except those purchased through my LOYAL3 account.
Here is the breakdown of dividend income (by stock) in October, along with the number of new shares added from DRiP –
- Cincinnati Financial (CINF) – $31.19 (.68 shares)
- The Coca-Cola Company (KO) – $3.44 (LOYAL3 – No DRiP)
- Lockheed Martin (LMT) – $36.00 (.20 shares)
- Sysco Corporation (SYY) – $8.53 (.23 shares)
New Capital Invested in October
In order to grow my portfolio, I need to reinvest my dividends into new shares of stock while also investing new capital. Every month I use several automatic monthly investments to purchase new shares of stock.
Here are the new investments I made in October –
- $25 lump sum investment in Dr Pepper Snapple (DPS) – .36 shares
- $50 automatic investment in Intel (INTC) – 1.46 shares
- $25 lump sum investment in Kellogg Company (K) – .39 shares
- $25 automatic investment in Coca-Cola (KO) – .58 shares
- $25 lump sum investment in Kraft Foods Group (KFRT) – .45 shares
- $25 automatic investment in McDonald’s Corp (MCD) – .27 shares
- $50 automatic investment in Microsoft (MSFT) – 1.08 shares
- $50 automatic investment in Verizon (VZ) – 1.02 shares
- $50 automatic investment in WalMart (WMT) – .64 shares
- $250 automatic investment in Exxon Mobile (XOM) – 2.77 shares
I introduced 3 new stocks to my portfolio for the first time – DPS, K, and KRFT. All of these stocks are available to purchase through my LOYAL3 account, so I decided to open very small positions ($25) in each. I may decide to setup monthly automatic investment plans on one or all of these stocks in the future.
I also decided to setup a monthly automatic investment plan with McDonald’s (MCD) through LOYAL3, even though I own this stock in my Fidelity account. I really like that I am not charged any commissions or fees from LOYAL3, which allows me to invest small chunks of money when it becomes available.
The total amount of new capital invested in October was – $575. By opening up new $25 investments on DPS, K, KRFT, and MCD – I increased my new capital investments by $100 this 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
- August Investments – $475.00
- September Investments – $475.00
- October Investments – $575.00
New 2014 Investments – $6,972.41
The dividend income earned in October ($79.16) from 4 stocks was a decrease from the previous month. However, I continued to see growth in my portfolio.
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 October, I was able to raise my 3 month rolling average to $84.70, which was an increase of $.30.
My total dividend income earned for 2014 so far (January to October) is – $777.14
Full Disclosure – At the time of this writing, I owned shares in the following stocks noted in this post – CINF, DPS, INTC, K, KO, KRFT, LMT, MCD, MSFT, SYY, 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.