I always feel super excited to prepare the monthly dividend post. Seeing the income progressing is the single best motivation to stay on the DGI path. That is especially true in times when stock prices are trending downward. Because it is the safeness of the dividend cash flow that serves as big insurance when panic starts to set in. Please keep in mind, Mr. Market can correct the market value of this portfolio. Fortunately, the correction will have no impact on the cash flow that this portfolio is going to produce.
In May, I was extra excited to see the passive income result. Since the payout of my German investments is scheduled for May, I expected to collect a record amount of dividends. But enough talking for now. Here are the final figures for this month.
Dividend Income: May 2019
All in all 11 different companies have sent me a dividend check in May 2019:
- AT&T (T): €30.88
- Verizon (VZ): €12.77
- General Mills (GIS): €13.35
- Fuchs Petrolub (FPE): €24.70
- Clorox (CLX): €6,52
- General Dynamics (GD): €8.47
- Allianz SE (ALV): €135
- AbbVie (ABBV): €24.30
- Texas Instruments (TXN): €10.53
- Starbucks (SBUX): €10.91
- Daimler AG (DAI): €48.75
Total income for the month of May: €326.18 ($365.32). That is an increase of 84% compared to May 2018. Wow, that is by far the highest monthly payment that I have ever received! The below charts illustrate the monthly dividend development until today.
|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%|
|Total||€ 765.01||€ 1,163.80|
Being a high paying month, May’s dividend result is an undisputed leader by a wide margin. No other month comes even close to this superior cash flow performance. While some part of the year-over-year growth is due to the continuous investment activities, the total picture is also influenced by other extraordinary events.
One such event is the payment shift by Daimler AG (DAI). Daimler has postponed the payout from April to May. As a result, this shift has boosted the May income on the one side and lowered the April income on the other side. However, it’s all not that important to me. In fact, I could care less about all these nuances. What I really care about is whether the dividend income is growing on a yearly basis. I want to see rising cash flows year after year regardless of whether the market is up or down. And so far this goal is being well met.
From an accumulated perspective, the portfolio income is up from €450 in 2018 to €765 in 2019. Think about it, that is a YOY increase of 70%. Much more than I have expected. Building an income stream that is reliable and increasing. That is where my focus is, not how much a position is up or down.
Looking at the full year estimation, I now expect this portfolio to generate about €1,518 ($1,700) in annual dividend income. My target is to grow that figure to €1,650 ($1,848) by investing new funds as the year goes by.
May 2019 has been the most successful month in terms of dividend income so far. This portfolio has generated a record amount of almost €330 in a single month. A fun fact on the side: that is already more than the total annual income of 2015 – the year when I’ve started dividend growth investing. Amazing, isn’t it? I think so!
Well, some people might claim that I would be better off focusing on growth stocks and total returns. Personally, I highly doubt that. I prefer to focus on building the cash flow instead of chasing the market. One day I’m going to be in the position where this portfolio can produce €500/month, then €1,000/month, then €1,500/month and it will all come from dividends. And all of that will be reinvested back to generate more cash flow. That is compounding at work. Think about it. So when it comes to choosing priorities, I choose cash flow without hesitation. That is the reason why I will continue to build that income stream.