Monthly Income Update – June 2002

Dear Readers,

It is that time of the month again. We have yet another month in the books, so it is time for me to write a report on how the month progressed. The stock market saw yet another tough month with a nearly 6.7% drop, including a drop of nearly 9.88% during the week ranging from Jun 7th to Jun 13th. Of course, I did not even know that any of this was transpiring. Why? Simply because I was not even looking at the stock market for most of the month! Work is pretty busy. It is summer time, with my kid not having to go to school. So there is really very little time to do anything else.

So I was actually curious about how my portfolio was faring up in this turmoil. I was mentally prepared to see a LOT of red and the portfolio having gone down in value. And I did see a LOT of red and some of my outstanding buy orders got triggered which made me super happy. What this meant for that I grabbed some very high-quality companies at some very attractive values. And when I then hovered over to the dividends tab in my portfolio, my joy knew no bounds. We will get into the numbers here shortly.

Let me reiterate: THIS is one the best times to be buying as a dividend growth investor. And quite honestly, this is a fantastic environment to be living through to promote my learnings as an investor.

Lets get into the numbers then!

Dividend Income Received

Sl. No.Company / ETF (ticker)Amount
1Aflac (AFL)14.97
2Church & Dwight (CHD)2.11
3Duke (DUK)5.02
4The Home Depot (HD)13.43
5Intel (INTC)7.30
6Johnson & Johnson (JNJ)39.64
73M (MMM)50.45
8Microsoft (MSFT)12.42
9NextEra Energy (NEE)2.15
10Pepsi Co (PEP)11.67
11Snap-On Inc (SNA)4.26
12Southern Co (SO)11.11
13Target (TGT)2.19
14T. Rowe Price Group (TROW)72.51
15UnitedHealth Group (UNH)3.33
15Visa (V)10.01
16Whirlpool Corp. (WHR)49.21
17Waste Management (WM)0.66
18Exxon-Mobil Corp (XOM)2.70
19Schwab US Equity Dividend ETF (SCHD)36.17
20iShares Core Dividend Growth ETF (DGRO)5.50
21Realty Income (O)14.77
22Digital Realty Trust (DLR)38.55
23STAG Industrial (STAG)3.76
24JP Morgan Equity Premium Income ETF (JEPI)2.58
Total$416.47

So a total of 24 companies/ETF contributing to a total of $416.47 in monthly dividend income. This has been yet another record-breaking month with my monthly dividend income breaching the $400 mark for the first time since its history.

Here is what the overall chart looks like since when I started this portfolio.

So if you look at the year over year comparison compared to last year, where I earned $88.20 in June 2021, this is a massive 370% YoY increase! At a time when the stock market is plunging and in bear-market territory, my portfolio is setting record numbers in terms of earned dividend income. THIS is the power of dividend growth investing and a message to the critics of this strategy. It is the stability and power of dividends that makes this strategy so much attractive to me. And all of this is about as passive as passive can get.

For context, take a look at who is my highest dividend payer for this month. It is our beloved TROW. And while the stock is getting crushed in the current market conditions, I cannot overlook the fact that this has been one of my solid investments as far as dividend income. In good times, management has done their part by rewarding its shareholders with very attractive dividend raises and special dividends. This is yet another learning for me. Remember who your winners are and do not lose faith in them by just looking at the stock price.

Buys and Sells during this month

No sells during this month. This is time to be buying, not selling!!

As far as my big purchases, I continued buying and adding to my TROW position as the stock touched new lows. I also added some more Home Depot (HD), Texas Instruments (TXN) and JPMorgan Chase (JPM). Also added some more Intel (INTC) as it dropped into the late 30s. I did read in the news about the stress tests for banks and how most of the banks passed that. And while a dividend increase from JPM was expected, the management decided against the increase. This was an interesting decision which makes me wonder about the management’s outlook about the near-future economic environment.

I took the opportunity to add into my Target (TGT) position. Other than that, I also added some small tranches to my Apple (AAPL) and Visa (V) positions. In my tax-advantaged accounts, I continued adding to my positions for SCHD, Realty Income (O) and JEPI.

Summary

So there you go! I am pretty happy with the overall performance of my portfolio and I seem to be well on track to achieve the projected annual dividend income goal. I am more convinced than ever about the viability of the dividend income growth strategy and will be sticking with this regardless of the overall market conditions.

11 thoughts on “Monthly Income Update – June 2002

  1. You bought some very high quality names!

    What are your thoughts about $DLR?

    I really like their play on the data centres and Iā€™m really bullish on that trend. However, if I remember correctly, the fundamentals (FFO I thought) are hardly growing over the last few years. This is why I keep shying away from going beyond an initiating position. My buy price right now is in the low 100ā€™s.

    Liked by 1 person

    1. Hey eDGI, DLR are kinda in my “look more closer” list especially after their recent quarterly financial results. I think the management is taking some pretty smart steps to combat inflation: including rent-escalators in their lease agreements etc. They have also admitted that their target is to keep a high single-digit AFFO growth for the coming years while maintaining a AFFO payout ratio less than 80%. What makes me a little nervous is reading about how folks like Jim Chanos are building up a short-sell case against companies like DLR, Equinix etc (See https://www.ft.com/content/e89e7071-0f1d-4bea-a857-a6fce236d776). DLR’s CEO Bill Stein countered Chanos’s claims as expected (https://www.datacenterdynamics.com/en/news/digital-realty-ceo-refutes-chanos-short-claims-says-data-center-demand-has-never-been-stronger/). I still think the dividend is safe and I expect to see single digit (5-6%) CAGR growth in dividend for the coming few years. I am not planning to add more to my existing position and keeping a close eye on how this story plays out.

      Liked by 1 person

  2. Leaps and bounds! My o my how this portfolio has grown. My take on JPM (purely speculation) they are building cash in case of buying opportunities from a recession. I can easily see them taking advantage of a situation.

    Funny story, last month someone asked me if I could do anything different what would I do. Told him I would have skipped individual stocks and buy an ETF like SCHD, DGRO or VYM and enjoy life even more instead of having to keep an eye on individual stocks.

    Liked by 1 person

    1. Thanks SDG! I would generally agree with you w.r.t ETF vs individual stocks. The only downsides I see with ETFs are : 1) I have no control over the holdings within the ETF. For eg. SCHD holds a reasonable % of IBM (4% I think), and I honestly do not like the IBM business because of incompetent management and horrendous execution. 2) As an investor, I do not have control over the % allocation for the different holdings. For eg., If I would like to own more of the low-yield, high-growth stocks, I cannot control those %s with an ETF. But those downsides aside, it frees up a lot of your time as an investor to focus on other things in life. For now, I am going with a hybrid approach where I hold dividend ETFs in my tax-advantaged accounts along with REITs and focus on individual stocks in my taxable brokerage account. This strategy has worked reasonably well thus far.

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  3. Great to see the new dividend record, LWD. With growth rates like you have (wow, 370%!), those record months will come often.
    TROW has been a winner for me and I liked your decision to add more at current levels. I also think your purchases of HD, TXN and JPM are solid, too.

    Liked by 1 person

  4. Congrats on crossing $400! Love seeing new milestones being reached. We nearly crossed $1,400 in one of our accounts but came up just shy, but it was still a new personal best so I can’t complain. Especially since we pulled in nearly $2,200 across all of our accounts. Keep up the good work in the 2nd half of the year!

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