Dividend Income – November 2018

It always brings a smile on my face to hear about stock market forecasts. Often it sounds like a doomsday scenario: the market is going to crash due to the trade conflict with China. Interest hikes are a real threat for your portfolio. Now it’s the best time to shift from stocks into bonds. These are just a few examples.

The Art of knowing is knowing what to ignore (Rumi)

It’s all noise. In times of increasing volatility, it’s important to focus on the essential and just ignore the rest. Firstly, the long-term trend of the equity markets is always showing upward. Secondly, the dividends are steady and most of the time not affected by Mr. Markets mood. Everything else is a distraction.

Dividend Income

That being said, it’s about time to update my dividend income of the past month. In November 2018, five companies have distributed dividend payments:

  • AT&T (T): €19.55
  • General Mills (GIS): €11.50
  • Omega Healthcare Investors (OHI): €22.09
  • Texas Instruments (TXN): €9.01
  • Starbucks (SBUX): €9.41

All in All, November’s dividend income came in at €71.56 ($81.22). That is a 42% increase compared to November 2017. I’m very happy with this development. The YTD picture looks as follows:

Month2018
2017
+/-
Total€ 1,163.80€ 699.93+66%
January€ 25.26€ 9.78+158%
February€ 55.35€ 17.92+209%
March€ 107.33€ 100.05+7%
April€ 84.92€ 66.47+28%
May€ 177.26€ 108.73+63%
June€ 103.13€ 70.66+46%
July€ 50.96€ 24.99+104%
August€ 190.84€ 43.00+344%
September€ 125.87€ 95.43+32%
October€ 54.34€ 23.83+128%
November€ 71.56€ 50.49+42%
December€ 116.98€ 88.58+32%

The accumulated yearly payments amount to €1,046.82 ($1,188.14). It’s really nice to see the annual income crossing the four-digit figure for the first time. Indeed watching dividends grow month by month, year by year, helps a lot to ignore the noise around us. Here is another chart that visualizes the YTD income compared to the previous year:

Portfolio adjustment

Recently I sold out my position in OHI. That means November’s dividend is the last quarterly payment that I’ve collected for the time being. The main reason behind selling this REIT, was my concern about its dividend safety. SSD has lowered the dividend safety score of OHI in 2018. The new SSD score is 40. On a 100-point scale it says that the dividend is unsafe, with an increased risk of being cut. In addition the share price has appreciated nicely during the past months. Overall, I felt it was a good opportunity to re-allocate and send the funds to some faster growing dividend stocks. But it will be challenging to compensate the income of this high-yielder, no doubt about it. In the end we don’t know what the future holds. Selling OHI might turn out to be a wrong decision – who knows. Hindsight is always easier than foresight.

I hope you all had a great November. Let me know about your progress.

 

16 Comments

  1. Jung in Rente December 2, 2018 at 8:06 pm

    Great progress you’re making there! You must have invested quite a lot of money in the past 12 months to achieve such a high growth rate. Just keep doing what you’re doing and you’ll end up at FIRE rather sooner than later.

    – David

    Reply
    1. Snugfortune December 2, 2018 at 8:59 pm

      Thanks for stopping by, David. Indeed, a solid part is due to new capital deployed. Another driver is that my ETF provider changed from reinvesting to distributing policy. That had a major impact on dividend growth rate – especially in August. It’s good to see that we’re all making progress towards our goals.
      Cheers
      Alex

      Reply
  2. DivHut December 2, 2018 at 10:51 pm

    It’s all about noise when it comes to financial headlines. It can be the best or worst of times and the financial headlines will always spell doom. Ignore, keep buying, diversify and build up that passive income stream. Nice to see we share several names for the month. Keep up the good work.

    Reply
    1. Snugfortune December 2, 2018 at 11:38 pm

      I’m totally with you, DH. Noise is rather an opportunity to collect some great businesses at a discount. Let’s hope it will continue to deliver us nice gifts=).
      Thanks a lot & all the best.
      Alex

      Reply
  3. BrokeInvestor December 3, 2018 at 1:37 pm

    Hey Alex,
    First of all, congrats on starting a blog (I am visiting for the first time).
    Now regarding your November income and seeing the charts for the year, your dividend income growth rate looks amazing!
    I am looking forward to follow your journey!
    BI

    Reply
    1. Snugfortune December 3, 2018 at 3:48 pm

      Hi BI,
      my goal was to launch the site this year. I’m happy it worked out=)
      Thanks a lot for your visit.
      Alex

      Reply
  4. My Dividend Dynasty December 3, 2018 at 2:30 pm

    Great YOY growth rate! Nice work in crossing the 4-digit mark in annual income! Keep up the great work! 🙂

    Reply
    1. Snugfortune December 3, 2018 at 5:04 pm

      It just feels good to achieve a milestone)
      Thank you. All the best.
      Alex

      Reply
  5. divvydad December 5, 2018 at 4:32 am

    Very nice month Alex, and YoY growth along with the four-digit milestone! We share three holdings for this month as well.

    I’m hoping the market turn today continues into Thursday (it will feel a little weird with the market being closed tomorrow) as it looks like there are a number of buying opportunities within reach! Keep up the great work!

    Reply
    1. Snugfortune December 5, 2018 at 11:26 am

      I’m with you, DD. Hope Mr. Market will continue offering us some good deals. So many high-quality companies are entering an attractive price.
      Too bad cash is limited)
      Cheers
      Alex

      Reply
  6. The long term investor December 8, 2018 at 1:41 pm

    Hi Snugfortune,

    Seems like a solid month! Keep those dividends coming!

    Cheers,
    TLTI

    Reply
    1. Snugfortune December 8, 2018 at 7:33 pm

      I always welcome them warmly=)
      Thanks for the visit, TLTI.
      Alex

      Reply
  7. Engineering Dividends December 11, 2018 at 7:06 am

    Congrats on reaching the $1K mark in annual dividends for the first time. It’s the first of many more I’m sure. You’ve had some terrific YoY growth every month this year, too. I’m liking those TXN and SBUX dividends. I’ve been paring back my OHI position over time due to the ‘unsafe’ dividend. It’s certainly difficult to replace all that dividend income at one time, as you suggest.

    Reply
    1. Snugfortune December 11, 2018 at 10:08 pm

      Thanks, ED. TXN has scored the best grade in my quality analysis. Its fundamentals are terrific. I know you like a price below $90. The same do I. Still looking to add a bit more.
      Also looking forward to see how you are going to offset the income of OHI.
      Cheers!

      Reply
  8. Doug December 12, 2018 at 5:43 pm

    Good job you have some great companies and your dividends should continue to rise substantially YOY keep it up.

    Reply
    1. Snugfortune December 12, 2018 at 6:13 pm

      Hi Doug,
      I’m optimistic that organic dividend growth will be good in the future.
      Thanks for stopping by.
      Cheers!

      Reply

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