Dividend Income – June 2019

This is a brief summary of the dividend income for June 2019. I track the dividend figures primarily because of the following two reasons: 1) to document my financial journey and 2) to monitor the progress. That’s it. Although I’ve made some good progress already, it’s still a long way to go. Slow and steady wins the race – and I have no doubt about it. Every dividend payment, every dividend raise, every contribution is a small step towards the final goal.

June 2019 has brought me one small step closer towards this goal. After booking a record income in May, I was quite excited about the dividend result in June. Without further ado, here are the final figures for this month.

Dividend Income: June 2019

All in all 14 different companies have paid me a dividend in June 2019:

  • Enbridge (ENB): €16.44
  • Visa (V): €1.88
  • Unilever (UL): €15.97
  • Amgen (AMGN): €8.73
  • Johnson & Johnson (JNJ): €23.49
  • 3M (MMM): €7.55
  • Home Depot (HD): €13.26
  • BlackRock (BLK): €9.90
  • Dominion Energy (D): €15.82
  • Royal Dutch Shell (RDS.B): €16.51
  • Union Pacific (UNP): €7.87
  • Pepsi (PEP): €14.22
  • Becton & Dickinson (BDX): €3.44
  • Bank of America (BAC): €5.58

Total dividend income for the month of June: €160.66 ($181.55). That is a year of year growth of 56%. This is where the dividend income is standing compared to the previous year.

Month2019
2018
+/-
Total€ 925.67€ 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€ 50.96
August€ 190.84
September€ 125.87
October€ 54.34
November€ 71.56
December€ 116.98

There is really not much to complain about. On the contrary actually! I’m more than happy to see a raising income inflow. And that is exactly the goal of this portfolio: build a reliable and growing cash flow. Normally, June’s income result would be even higher. However, Broadcom (AVGO) shifted its quarterly distribution from June to July this year. No big deal. I will include Broadcom’s payment in the coming dividend report for July. As stated in a previous post, the yearly growth rate is what I care about. Payments might be shifted between months. However as long as the income is increasing on an annual basis, I’m more than happy. And so far the year-to-date result looks good.

Looking at the cumulative perspective, the portfolio income is up from €553 in 2018 to €926 in 2019. This is a YOY growth of 67%. My full-year income in 2018 was €1.164. With June in the books, this portfolio has generated €926 in 2019 so far. I reckon that July’s and August’ dividends will bring the portfolio income to the full-year mark of 2018. That means every cent that I’m going to collect in September, October, November, and December will represent extra income compared to the previous year.

The projected dividend income for 2019 is sitting at €1.533 ($1.730) at the moment. I’m still committed to the goal of bringing it up to €1,650 ($1,848) as the year goes by.

Dividend Increases

One important element that helps me to achieve this annual income target is dividend increases. Recently, two of my holdings decided to increase the dividend payment to the shareholders:

  1. JPMorgan Chase (JPM). The company increased its quarterly dividend by 12.50%, from 80¢ per share to 90¢ per share.
  2. Bank of America (BAC). The company has announced a 20% increase in its dividend.

Beyond that, both banks have unveiled their plans to authorize up to $30 billion in share repurchases. I don’t know about you, but double-digit dividend hikes and huge share repurchase announcements are simply music to my ears. Both companies are returning a huge value to their shareholders and that is what I like a lot.

Summary

Well, we are halfway through the year and the investing world around us remains moody. However, things are looking good at the moment. This portfolio is sitting at an all-time high and I believe that many of my fellow dividend growth investors are in the same situation. But it all can change quite fast. Mr. Market can be really ruthless in this matter. However, those who focus on income, can lean back, relax and enjoy the show. The situation didn’t change a bit! Dividends keep coming in regardless of whether share prices are down or up. For me, this is a simple and calming finding of the DGI concept.

24 Comments

  1. PassiveCash July 2, 2019 at 7:45 pm

    All looks good in paradise…the snowball looks bigger.
    Congrats

    Reply
    1. Snugfortune July 2, 2019 at 7:58 pm

      …Take me down to the paradise city
      Where investing is fun and the divvies are pretty
      Taaake meee home 🙂

      Reply
  2. Jung in Rente July 3, 2019 at 8:29 am

    Congrats to an awesome H1/2019! You’re doing a pretty decent job here!

    I saw that you have Enbridge in your portfolio. May I ask how you handle Canadian dividends from a tax perspective as a fellow German investor?

    Thanks in advance!

    – David

    Reply
    1. Snugfortune July 4, 2019 at 12:06 pm

      Thanks a lot, David!
      You hit a nerve with that questions. Unfortunately, Canadians stocks are far from optimal from the tax perspective – at least when you live in Germany.
      Although there is a double taxation agreement between Canada and Germany, the Canadian tax authorities immediately deduct 25% withholding tax on dividends.
      15% out of it will be counted by German tax authorities. And since we have 25% capital gain taxes here, the German tax authorities will charge you another 10% to come to the final result of 25%.
      Long story short: for Canadian dividends you have to pay 35% tax in total. And that’s a shame! I would like to own much more Canadian stocks, but because of tax reasons I don’t buy more.

      Reply
  3. DivRider July 4, 2019 at 10:19 am

    Nice year-over-year increase! I also like the presentation of your summary. Very clean structured.
    And I wonder how JPM slipped under my radar – added to my watchlist.
    Keep up the good work!

    Reply
    1. Snugfortune July 4, 2019 at 1:55 pm

      Thank you, DivRider.
      In regards to bank stocks in general, I think many people prefer to stay away from them. And I can totally understand it since many folks burned their fingers in the financial crises.
      It all comes down to your personal risk profile. If one is aware of the more riskier nature of this investment, why not own some banks in the portfolio?
      After all, banks are doing really well, earnings are growing..and all that in a quite difficult market envirenment for banks.
      And then you have that huge buybacks and dividend raises. I like that a lot.
      JPM would be my Nr.1 bank, if I had to choose one. I’ve added to my position in April following a strong Q1 report.

      Reply
  4. Jung in Rente July 7, 2019 at 8:06 am

    What a pity! However, that’s also my understanding.

    So, no Enbridge, Bank of Nova Scotia, Canadian National Railway & Co. for me… 🙁

    Reply
    1. Snugfortune July 7, 2019 at 11:58 pm

      yeah it’s really a shame. There are so many great Canadian stocks out there.
      But the tax situation simply makes it less attractive to own them.

      Reply
  5. Engineering Dividends July 7, 2019 at 9:18 pm

    Everything is looking good, SF. You’ve acquired a strong collection of stocks. So many terrific names.
    You should soon be looking forward to consistent 100 Euro months, a wonderful thought.
    Those were some hefty raises from your mega banks. I was able to share in the JPM one. I have a couple of new regional banks in my portfolio (CHFC & ZION) and am curious to see if they’ll be as generous with their dividend raises in July’s expected announcements.

    Reply
    1. Snugfortune July 7, 2019 at 11:55 pm

      Thanks, ED!
      Although I’m more interested in the annual view, I would love see each month generetating a triple digit income.
      So far this PF is averaging approx. EUR 155/month. And I’m quite happy about it.
      I know you also own JPM. We love those double-digit dividend raises and buybacks:)

      Reply
  6. Dividend Diplomats July 8, 2019 at 4:46 am

    Looking sharp SnugFortune. I really like the results from the month. Congrats on those banking dividend increases. Those were some awesome increases right there. I did not think the Fed would give the go ahead for THAT large of a dividend increase. But hey, it is a good thing , right?

    Bert

    Reply
    1. Snugfortune July 8, 2019 at 10:23 am

      Double digit dividend increases + massive share buybacks..as an investor I’m more than pleased with that announcement.
      A good thing for sure:)

      Reply
  7. Dividend Deluge July 8, 2019 at 1:55 pm

    Great month SF, those are pretty colossal dividend increases! Unilever has been on my watchlist for ages, but would like to see a small stock price drop and don’t know should I buy it from London, Amsterdam or New York.

    Reply
    1. Snugfortune July 8, 2019 at 6:35 pm

      Thanks, DD!
      Unilever is one of my favourite consumer staples companies.
      When it comes to choosing a trading place, I usually pick one that shows the highest liquidity. In most of the cases, it’s the domestic stock market.
      However, sometimes I use the German stock exchanges to order US securities. It depends on what I want to buy. Stocks like KO, PEP or JNJ are heavily traded in German stock markets too. So I buy them there.

      Reply
  8. Divs4Jesus July 9, 2019 at 1:13 am

    Progressing nicely snug — I think we’re still pretty close portfolio and dividend income size.

    Reply
    1. Snugfortune July 9, 2019 at 11:55 am

      Thanks, D4J!
      Progress is what it’s all about. I hope it will be as good in the second half of the year as it was in the first.

      Reply
  9. Buy, Hold Long July 9, 2019 at 12:51 pm

    Keep growing that snowball. You’re doing a great job. Cheers

    Reply
    1. Snugfortune July 9, 2019 at 6:17 pm

      It grows almost by itself and that’s the beauty of it:)
      Thanks, BHL!

      Reply
  10. Dividend Daze July 9, 2019 at 5:01 pm

    Way to go. Only half way through the year and you are almost about to pass last years’s dividend total. You have a lot of companies paying you this month which is nice to see. Good luck going into the second half of the year.

    Reply
    1. Snugfortune July 9, 2019 at 6:25 pm

      I hope I can pass it with the help of July and August. We’ll see.
      Either way, the PF income is growing and that is what matters to me the most.
      Thanks for the visit, DD!

      Reply
  11. CanadianPassiveIncome July 10, 2019 at 3:00 am

    nice snug. Love seeing that chart with all the yr over yr growth percentages.

    2 nice raises as well.

    keep it up.
    cheers

    Reply
    1. Snugfortune July 10, 2019 at 11:36 pm

      Hey CPI,
      It’s also one of my favourite charts. I hope it will continue to show growth for many years to come.

      Reply
  12. Tawcan July 11, 2019 at 1:17 am

    Wow what a great month! I love looking at those charts. Love seeing that blue projected dividend income line going higher and higher!

    Reply
    1. Snugfortune July 11, 2019 at 12:24 pm

      Thanks, Bob!
      Indeed I adjust the projected annual income upwards almost every month. So the blue line keeps on growing.
      As said above, slow and steady wins the race. That’s how we roll ha 🙂

      Reply

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