We are almost at the end of the summer and our family is looking forward to the start of the next school season. Work has been incredibly busy. And while all of that was going on, I was keeping a close eye on the earnings reports of certain companies that are on my watchlist. Some of these earnings reports were brutal. Several companies have gone the route of slashing their full year guidance. I also read media reports from Meta and Google that they were freezing hiring for certain positions. There is a lot to talk about as far as Q2 earnings from certain companies, so I will dedicate a separate post for that.
This post though is about my monthly dividend income earned for the month of July 2022. This was expected to be a slow month. How slow? Lets go find out.
Dividend Income Received
|Sl. No.||Company/ ETF (ticker)||Amount|
|1.||JP Morgan Chase (JPM)||$32.31|
|2.||Realty Income (O)||$15.86|
|3.||JP Morgan Equity Premium Income ETF (JEPI)||$4.35|
|4.||Orion Office (ONL)||$0.3|
|5.||CareTrust REIT (CTRE)||$6.61|
|6.||STAG Industrial (STAG)||$3.78|
So a total of 6 companies/ETFs contributed a total of $63.21 in dividend income. The highest contributor was JPM, who in their recent earnings release decided NOT to increase their quarterly dividend. More on this in a future post.
A quick point that I wanted to bring up here: the dividend income I received this month is considerably lower than that of last month. In fact, last month was a record. I know a lot of dividend investors try to spread out their investments such that they can get consistent dividend payments every month of the year. This is not something that concerns me one bit and I do not want factor that it when I choose which company to invest in. I instead choose to focus on high-quality companies that have stable cash flows, thereby ensuring a consistent dividend back to me. These dividends could come in annually, semi-annually or quarterly, it really does not matter at this point. Will it matter once I am in retirement? Maybe. But I am hopeful that by that point the snowball would have grown so much that a slow month really does not matter that much in pure dollar amount.
In any case, to supplement my dividend income for this month, I also wrote a covered call against some stocks, these stock units I earned as part of performance appraisal from my previous employer. I earned another $49.31 in option premium. While I was expecting the supply chain and inflationary pressures to impact the semiconductor industry, I was proved wrong. Intel (INTC) aside, most of the semiconductor companies that I am tracking came out with surprisingly great quarterly earnings results. This also meant that I very nearly got assigned on my covered call (yikes!). Luckily, there was some pull-back late last week. But even if this changes and my covered call gets assigned, I am not too worried as I would be selling these units at what I believe is a good value.
So, my total monthly income from all my investments was a grand total of $112.52. At the same time last year, I had earned $35.63 from my investments. Not bad for what is a slow month, eh?
Buys and Sells during the month
No sells during this month, again.
As far as buys, I decided to small tranches to my JPM position and Snap-On (SNA). It was disappointing to not see a dividend increase announcement from JPM. SNA delivered solid quarterly results once again. Following VZ’s quarterly earnings release, the stock market went crazy and the stock dropped from a cliff. This gave me an opportunity to add more shares at a very attractive dividend yield. VZ and T both suffered similarly as far as stock price, but my take on both companies is very different. This topic truly deserves a post of its own, so I will cover my thoughts there.
So a slow month, but a steady month. And that is really the mantra of this game we are playing here. Dividend growth investing is NOT a get rich quick strategy. But if you stick with the strategy long enough, the strategy will soon pay its…dividends 😉