Dividend Income – July 2019

Progress doesn’t feel like progress at the beginning. That’s why so many people quit too easily. Four years ago, there was definitely little progress when I’ve started building this portfolio. Although I knew that the compounding effect needs time to unfold, my personal progress felt like taking very tiny baby steps. And still today, those steps are rather small. But the most important thing is that they are getting bigger. The cash flow is growing from year to year and that in itself is a wonderful motivation to stay on the path.

Progress, of the best kind, is comparatively slow. Great results cannot be achieved at once; and we must be satisfied to advance in life as we walk, step by step.
Samuel Smiles

Just in case you consider quitting, keep in mind: as long as you’re progressing towards your goal, all is good. Have some confidence in yourself as an investor and simply keep going. Patience and consistency will compound your wealth. And today’s baby steps will convert into giant steps as time goes by. Personally, I can’t wait to see what this portfolio achieves in the next four years and beyond. But first things first: here is the income report for the month of July.

Dividend Income: July 2019

All in all 6 different companies have provided me with a dividend cheque in July 2019:

  • Coca-Cola (KO): €8.08
  • Broadcom (AVGO): €15.91
  • Philip Morris (PM): €17.17
  • Illinois Tool Works (ITW): €9.82
  • Walt Disney (DIS): €10.04
  • JPMorgan Chase (JPM): €17.03

Total dividend income for the month of July: €78.05 ($86.65). That is a year over year growth of 53% compared to July 2018.

Month2019
2018
+/-
Total€ 1,003.72€ 1,163.80
January€ 97.98€ 25.26+ 288%
February€ 89.69€ 55.35+ 62%
March€ 166.57€ 107.33+ 55%
April€ 84.59€ 84.92+/- 0%
May€ 326.18€ 177.26+ 84%
June€ 160.66€ 103.13+ 56%
July€ 78.05€ 50.96+ 53%
August€ 190.84
September€ 125.87
October€ 54.34
November€ 71.56
December€ 116.98

Another month, another solid income growth rate. Slowly but steady the snowball gains speed. I will simply continue to collect and reinvest those dividends. Alongside with organic growth and new investments, it will boost the cash flow of this portfolio going forward. Folks, this is a very simple but highly effective approach of building wealth over time. I gave up going in and out of positions. I don’t want to time the market, trying to buy low and sell high. That is all not for me. Today, I keep my investments and build them up in size.

 

The reward is an ever-growing income stream. From the cumulative perspective, this portfolio has crossed the €1,000 mark in July. This is a growth rate of 66% compared to the same period in 2018. Last year, it took me eleven months to reach this mark. This year, it was accomplished in seven months. And for the next year, I’m confident to be there even faster.

Forward-looking, I expect this portfolio to generate €1,606 ($1,790) in annual dividends in 2019. As the income goal is to reach €1,650 ($1,848) at the end of the year, I feel quite optimistic about achieving it.

Dividend Increases

In the last income report, I’ve discussed the double-digit dividend hikes by Bank of America (BAC) and JPMorgan Chase (JPM). This month, I’m happy to announce another double-digit increase by one of my holdings:

Union Pacific Corporation (UNP) is raising its dividend by 10.2%. And that is the second double-digit dividend increase by UNP this year. Earlier in 2019, UNP has raised its dividend by 10% already. So all in all, we are looking at a growth rate of 21.3% for the year 2019. Crazy! This train is simply unstoppable.

Summary

With this month’s dividend income in the books, this portfolio has crossed the €1,000 mark already in July. My goal is to reach €2,000/month one day. In order for this goal to become reality, I need to keep increasing the share count. Simple as that. As soon as the desired number of holdings is reached, I will focus on building them up in size. Step by Step, following the next man up concept. At some point on that journey, the market is going to correct the value of this portfolio. So be it. I sleep well at night knowing that the cash flow won’t be corrected so easily.

4 Comments

  1. Doug August 8, 2019 at 10:21 pm

    Nice job and you have almost surpassed last years dividends. way to go keep it up.

    Reply
    1. Snugfortune August 10, 2019 at 5:18 pm

      Thanks, Doug!
      Let’s see what the remaining months will bring

      Reply
  2. Engineering Dividends August 16, 2019 at 6:39 am

    I like your lineup of July dividend payers, SF. Very solid. I’d would like to find a way to add AVGO and DIS to my portfolio.
    Another impressive YoY growth number… keep it up!
    I was happy to be a recipient of that same UNP dividend raise. Two years in a row with two dividend raises… Woohoo!

    Reply
    1. Snugfortune August 16, 2019 at 11:37 am

      Thanks a lot, ED!
      Yep, two years of double-digit dividend increases by UNP. “Woohoo” pretty much sums it up. I’m happy for you, knowing that UNP is one of the largest positions in your PF. That income boost is simply bigger if you hold a position of size.
      I’m curious to see wether you will pull the buy trigger on AVGO and DIS.

      Reply

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