Dividend Income – March 2019

The first quarter of 2019 has passed and the stock markets have been quite generous lately. Despite the recession fears, ongoing Brexit talks and China trade conflict, the S&P 500 gained almost 15% year-to-date. Some of my positions, such as HD, AVGO, SBUX or ALV, experienced even higher gains. No doubt, it feels good to see the portfolio value growing. But things can change in an instant. Big market drops occurred several times in the past decades. That is not unusual. And there is nothing we can do about it.

The market can correct my portfolio value and I have no control over it. But the market can’t control my dividend cash flow. For that reason I focus on what I can control, which is income. And here lies the beauty of dividend growth investing. Prices might fluctuate but dividends of wonderful businesses tend to grow. Don’t you believe it? Take a look at my dividend income report for March 2019.

Dividend Income: March 2019

In March, 14 companies have rewarded me with a dividend payment:

  • Enbridge (ENB): €16.59
  • Visa (V): €1.87
  • IBM (IBM): €9.47
  • Lbrands (LB): €6.80
  • Johnson & Johnson (JNJ): €16.94
  • Dominion Energy (D): €15.74
  • Unilever (UL): €15.61
  • BlackRock (BLK): €9.82
  • Royal Dutch Shell (RDS.B): €16.73
  • Home Depot (HD): €13.35
  • Broadcom (AVGO): €16.00
  • PepsiCo (PEP): €14.01
  • Union Pacific Corp. (UNP): €7.98
  • Bank of America (BAC): €5.66

March’s dividend income total came in at €166.57 ($187.40). Compared to March 2018, this is a fantastic gain of 55%.

Month2019
2018
+/-
Total€ 354.24€ 1,163.80
January€ 97.98€ 25.26+ 288%
February€ 89.69€ 55.35+ 62%
March€ 166.57€ 107.33+ 55%
April€ 84.92
May€ 177.26
June€ 103.13
July€ 50.96
August€ 190.84
September€ 125.87
October€ 54.34
November€ 71.56
December€ 116.98

With Dominion Energy (D) and Bank of America (BAC), I welcome two new dividend contributors this month. Lbrands (LB), on the other side, shows up for the last time, since I have exited my position in March. The money from LB has been invested in Home Depot (HD), boosting its cash flow by acquiring five additional shares of the home improvement giant.

(Dividend Income: 2019 VS. 2018)
(Accumulated Dividend Income: 2019 VS. 2018)

Accumulated dividend income in Q1 2019 sums up to €354.24 ($398.52). That is a year-over-year increase of 88%, compared to the same period last year. In April 2019 I expect to collect about €110 ($124) in dividends. That would be another month with a triple-digit figure in monthly income.

(Accumulated Dividend Income 2019: Received Vs. Projected)

The green bar in March (dividends received), which is above the blue line (projected dividends), shows that I’m right on target with my plan for the year. At the moment, the projected dividend for 2019 is €1,380 ($1,553). With the support of dividend growth and additional investments, I target to achieve €1,650 ($1,890) at the end of 2019.

Summary

I can’t stress this enough how powerful dividend growth investing can be. All we need to do is to keep on investing and let the power of compound interest wave its magic. The earlier we start the better. Markets are going to fall and raise as time goes by. We simply have no control over it. So why worry about something that lies outside of our influence anyway? It is far better to focus on those things that we can manage. Things like dividend cash flow.

Even though there will be one or two companies reducing the dividend, the overall income should be just fine. I had such a case with LB last year. Some of my fellow investors have experienced it with KHC this year. But guess what? They still kept posting growing dividend income streams. A well-diversified portfolio of dividend growth stocks can easily cover a few reductions. That’s why. We must not lose sight of the big picture by focusing on one or two companies that didn’t perform according to our expectations. As Warren Buffett beautifully expressed it in the latest Berkshire annual report: Focus on the forest – forget the trees.

10 Comments

  1. Dividend Daze April 5, 2019 at 3:42 pm

    Congrats on the great month and nice growth numbers. Side note, Unilever has the Starbucks symbol next to it. Not sure if this was in error or not. Happy to share a few companies this month with you. Cheers!

    Reply
    1. Snugfortune April 5, 2019 at 4:58 pm

      Yep, it’s an error, which is now corrected.
      Thank you, DD!

      Reply
  2. Engineering Dividends April 5, 2019 at 8:23 pm

    Great progress, SF. I was going to say that LB kind of stuck out in your portfolio like a sore thumb, only to find out you sold it and reallocated the funds. I like this move. The transition to HD should be an excellent choice.
    Your list of payers this month look rock solid. Congrats on building a tremendous foundation, and here’s to growing your portfolio into the dividend clouds.

    Reply
    1. Snugfortune April 6, 2019 at 12:29 am

      Agree, ED!
      I was wrong about LB and didn’t get out in time when there were obvious negative signs (such as downgrade by S&P in Aug 18 and dividend reduction in Nov 18).
      I bought into weakness and expected it to turnaround because it’s an iconic brand. But even iconic brands are not protected against changing consumers’ minds.
      I’m quite happy with the reallocation to HD. Much more quality here.

      Reply
  3. DivHut April 9, 2019 at 7:21 pm

    Where or where did three months pass? Can’t believe we’re in Q2 already. Nice progress with your passive income too. I like your 2018/19 chart comparison too. Nice way to show your progress relative to last year. As always, nice to see a handful of shared names paying us both. Keep it up!

    Reply
    1. Snugfortune April 10, 2019 at 11:26 pm

      In a blink of an eye we are in July and it’s Q2 earnings report time haha.
      Glad you liked the chart. A picture sometimes is trully worth a 1000 words.
      Cheers

      Reply
  4. Rajuthan April 17, 2019 at 2:26 am

    Congrats on March numbers. Hopefully April gets better for you.

    Reply
  5. dividendcompounder April 20, 2019 at 2:43 pm

    Amazing progress. Congratulations! And I like your graphs, very smooth…

    I think this will be a year of tremendous growth numbers. Will be coming back to see how you’re doing. 👍

    Reply

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