Greetings and welcome to the summer edition of the DGI For The DIY dividend income review. My apologies for the lack of updates in recent months, I’m sure you’ve all been on the edge of your seats in anticipation of a new article!
As is likely the case with most of you, it’s been an incredibly busy summer for my household. It seems I make this comment with every update, but free time has become even more difficult to find in recent months.
Hello and welcome to another monthly update on the DGI For The DIY portfolio, I hope you all are having a happy spring.
Considering we had snow on the ground until late April, my family was busy in May enjoying every minute we could of the warm weather.
Bike rides, T-ball, fishing, hiking, family vacations…we pretty much tried them all.
With all that activity, investments and blogging have once again been put on the back-burner, but I’m totally fine with that.
Dividends are great and all, but they are no comparison to the reward of hearing the excitement in your son’s voice as he lands his first sunfish. And then hearing equal excitement as he lands a half-dozen more.
He thought Mt. Rushmore was pretty great too, and he got his money’s worth out of the $3 binoculars his mom found for him at Target.
The month of February is in the books, and it was an extremely volatile one for the stock market. It was also a busy month for me personally, as deadlines led to overtime at work and frequent snowstorms provided me with ample exercise opportunities in shoveling out the driveway.
As I type this update, we sit just three weeks one week away from Christmas. My kids are getting more excited by the day, and my 3-year-old still hasn’t quite figured out why it isn’t already Christmas since the tree is up and Christmas songs are playing on the radio.
However, the purpose of this post isn’t to look ahead, it is to review the past month, and November was another excellent one for both myself and the portfolio.
My apologies for the delayed update, it’s been a crazy month at both work and home, limiting my free time to do much writing of late. I also needed to get my Q3 portfolio update finished up before we got too far into Q4, and that was published on Seeking Alpha last Friday.
With that article out-of-the-way, I figured I’d get an update on the September income put together before October closes out.
September was another successful month for the portfolio, as dividend income rose by 10% over 2016 levels. This increase came through a combination of organic dividend growth, dividend reinvestment, and new cash contributions to the account.
My favorite part of dividend growth investing is declaration day, the day when a new dividend rate is announced by one of the companies I own. People generally get one raise per year at work, but with a portfolio of 53 stocks, I average better than one income increase a week!
I keep a log of all the dividend growth announcements made by companies held in my portfolio going back to the beginning of 2013. By doing so I am able to see when each company announces their new dividend rates, and decide if there is a trend on when those new rates are declared.
October brings five companies to my attention who are likely to announce higher dividends. I will look at each of those stocks below, and give the reasoning behind my predictions for the new dividend rates.
Dividend growth investing is the strategy of buying shares in companies that have a history of paying reliable and increasing dividends.
I began practicing this investment strategy in early 2013 when I sold out of the mutual funds in my retirement account and used the proceeds to create a collection of 50 dividend growth stocks, which evolved into the DGI For The DIY portfolio.
My goal is to fund a significant part of my future retirement with the increasing dividend income stream that this account produces. I give monthly updates of the portfolio’s dividend growth progress to document my journey and offer an example for others who are interested in taking control of their own retirement accounts by becoming self-directed investors.
Dividend growth investing is the strategy of buying shares in companies with reliable and consistently increasing dividend payouts to shareholders.
I have used this strategy since early 2013, and have kept a log of all the dividend increase announcements in my portfolio since its inception. By doing so, I am able to see which companies I own announce new dividends on which dates, and see if there is any pattern to the announcements over the years.
I have found that there is typically a lull in announcements made during the summer months, with most announcements made in either quarter surrounding the New Year. This makes intuitive sense, as companies are generally declaring new rates at the end of either their fiscal or the calendar year.