Monthly Income Update – August 2021

Time for one more entry into my favorite category on my blog: my monthly income updates. I cannot explain the thrill of counting and then reporting all of my dividend pay checks at the end of the month. It is really addicting! Tracking the monthly income that the portfolio is generating is perhaps the most important performance metric that I care about. Okay enough talk. Lets get right into it!

Dividend Income Received

During this month, I received income from the following companies:

Company / ETF (ticker)Amount
Apple (AAPL)$1.60
Abbvie (ABBV)$12.16
Albertsons Companies (ACI)$0.79
Caterpillar (CAT)$1.43
Clorox (CLX)$11.50
Costco (COST)$2.38
Procter & Gamble (PG)$6.27
AT&T (T)$2.23
Texas Instruments (TXN)$5.51
Verizon (VZ)$6.96
Realty Income (O)$7.84
Stag Industrial Inc. (STAG)$2.56
Total$61.23

So a total of 12 companies that doled out dividend pay checks to me as a thank you for investing my capital in their business. All of this while I was focusing on my daily life and other responsibilities. During August of 2020, when I was very early into my dividend investing journey, I earned a whopping $1.48. I have a come a long way in this one year span!

As I was going through the process of drafting this post, I saw a news update that Verizon (ticker: VZ) has increased its quarterly dividend by 2% to $0.64 per share. VZ is currently yielding 4.66% on a forward basis. This news was met with mixed response with a lot of investors sounding grumpy about the paltry dividend increase. Personally, I am not too bothered about this. VZ’s balance sheet is loaded with debt at present, most of which is understandable given its recent push into the 5G space. And the telecom sector is a very demanding industry with a lot of capital needed for infrastructure. Given this background, I completely understand the management’s decision to slow down on dividend increases and instead focus on getting the debt under control. VZ is a holding within the bond-like category of my portfolio: great starting yield, mediocre dividend growth and a safe dividend payout ratio. It is doing its role pretty well in my portfolio.

Buys and Sells during this month

August was a relatively quiet month for me in terms of stock purchases. The reason for this is that I was seriously contemplating about whether I was going to continue with M1 Finance as my brokerage for my dividend portfolio. I wrote a detailed post on this subject, mostly for the benefit of any other fellow investors out there who might be contemplating about the same thing. I have now moved my assets over to Fidelity and the move is already paying dividends ( 😉 see what I did there).

One outcome of the move from M1 Finance was that any fractional shares got sold and the resulting capital was moved over as cash into my new created Fidelity account. In general, I never ever want to sell any shares unless something fundamental has changed with the business in relation to why I originally invested in it. But in this case, it is all good since this is for the long-term and I am fairly confident that I will be sticking with Fidelity for a long long time.

Overall, the brokerage switch process was fairly smooth and I was able to chat with a real person at Fidelity to answer any questions and guide me through the process, something that I have routinely struggled to do with M1.

Staying in the game purchases: AFL, JNJ, PEP, PG, CTRE

Other purchases: CLX, O, SCHD, DGRO, DLR, STAG

Positions exited during the brokerage move: SWK, UPS, AVGO

I am not particularly unhappy about exiting the positions above, as these were relatively small positions and had seen a lot of run-up in stock price as a beneficiary of the situation due to the pandemic from last year. I will wait on the sidelines and look for a better entry point with each of these businesses.

How did your portfolio perform this month? Did you break any personal records? I would love to hear from you in the comments below!

5 thoughts on “Monthly Income Update – August 2021

  1. Your take on VZ is spot on and with that expectation any dividend growth is bonus.

    Not sure if are or one day will be a Dad but I can say based on experience you are a really good Dad based on this one line “…the move is already paying dividends”. I say this because only good Dads are allowed to tell cheesy Dad jokes.

    Liked by 1 person

  2. Tremendous YoY progress. Just imagine if it could always be like that. We’d reach our goals in no time. 🙂
    Those are some nice companies paying you dividends… I’d could see adding AAPL, CLX and COST to my portfolio.

    Like

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