Dividend Portfolio Update for September 2018

First of all, I need to apologize to my readers for not posting for the last two months. Without getting too personal, I had a big lifestyle change that occurred but now I’m back. Add on top of that, a rather huge expense with my vehicle breaking down that ate all my spare funds for the last two months. When it rains, it pours!

But I believe that people will always be tested and it’s important to keep your eye on the prize. In this case, my prize is an ideal income producing dividend portfolio!

Let’s dig in.

Summary

  •  $355.16 in dividends
  • Added $3,200 to the portfolio
  • Added $198.51 to my annual income.

 

sept 2018 dividend portfolio

 

Account Deposits
As usual, $200  comes out  per paycheck with automatic deposit and at the end of the month I throw whatever is left into the account. These deposits still continued while I was inactive for the last two months and in late September, I was also able to add an additional $2,000 into the account.

$200 + $200 +$200 + $200  +$200 +$200 +$2,000 = +$3,200

Dividend Payouts
Here are the companies that paid me dividends for the month of September:

Symbol Name Dividend
PFE Pfizer $5.44
F Ford Motor $30.00
PSX Phillips 66 $12.80
V Visa $2.10
ENB Enbridge $15.25
SO Southern $26.40
IBM IBM $18.84
CVX Chevron $6.72
TGT Target $28.80
XOM Exxon Mobile $17.22
JNJ Johnson & Johnson $22.50
WBA Walgreens $4.40
SDIV Global X Superdividend $13.66
O Realty Income $12.76
FLO Flowers Food $19.80
MAIN Main Street Capital $3.04
DUK Duke Energy $27.83
GILD Gilead Sciences $11.40
TROW T. Rowe Price $18.20
ARCC Ares Capital $40.95
CLDT Chatham Lodging Trust $17.05
$355.16

 

Using Google Docs, I keep a running spreadsheet of how much dividend income I receive every month. I think it’s important to realize the growth of your passive income over time. In Sept 2017, I received $301.18 in dividend income. If we do the math, that means my September dividend income has increased a +17.9% compared to the previous year.

Monthly Total: +$355.16

Stock Purchases

I bought quite a few things in the last three months.

I purchased 7 shares of SBUX @ $48.60 and another 2 shares of SBUX @ $55.07.

Starbucks operates as a roaster, marketer, and retailer of specialty coffee worldwide. They currently operate in the Americas, China/Asia Pacific, Europe, Middle East, and Africa.

It’s hard to find anyone who is not familiar with Starbucks as a brand. And while I do not partake in the drinking of coffee, I’m much more of a tea drinker myself; There is a lot to love about Starbucks.

They currently sit at a 2.6% yield and have been on a yearly dividend growth roll for the last 8 years. Their 3-year and 5-year dividend growth rates sit at 24%!

This adds +$12.96 to my annual income.

 

I purchased 11 shares of T @ $30.45 and 15 shares of T @ $33.75

AT&T is a communications and digital entertainment company that currently operates in four segments. They provide wireless services, in-home internet services, and video entertainment to subscribers through its DirectTV and Sky brands.

The big news to hit AT&T has been their potential purchase of Time Warner for 85 billion! With the taking on of so much debt, the market has grown a little leary of this telecom giant.

They currently sit at a whopping 5.9% dividend yield and have been paying increasing yearly dividends for the last 34 years! Their 3-year and 5-year dividend growth rates sit at 24%!

This adds +$52.00 to my annual income.

 

I purchased 14 shares of PZZA @ $43.00.

Papa Johns operates and franchises pizza delivery and carryout restaurants in the United States as well as 45 other countries.

If there’s one thing I know, it’s that pizza will always be loved and there’s no way that it’s going to go away. There’s been a lot of negative news for Papa Johns lately but I feel in the long run that it will just be a blip in the chart. I will also officially announce that out of all the pizza chains, I prefer Papa Johns the most.

They currently sit at a 1.8% dividend yield and have been paying increasing yearly dividends for 5 years. Their 3-year dividend growth rates sit at 17%!

This adds +$14.90 to my annual income.

 

I DRIP’d 1 share of MAIN @ $40.43.

Main Street Capital is a business development company specializing in long- term equity and debt investments in small to lower middle market companies.

I decided to drip another share of Main Street purely because I love how they operate.

They currently sit at a 6.1% dividend yield and have been paying increasing yearly dividends for 8 years. Their 5-year dividend growth rates sit at 7%.

This adds +$2.34 to my annual income.

 

I purchased 30 shares of GIS @ $44.00 and an additional 5 shares of GIS @ $44.28.

General Mills is a consumer staple that markets and manufactures branded consumer foods worldwide.

Their recent foray into pet food with the 8 billion dollar acquisition of Blue Buffalo has some investors on shaky ground. Add on top of that, that they froze the dividend for the time being until debt loads become more stabilized, I can understand. But I believe in the company and will continue nibbling shares here and there if the price is right.

They currently sit at a 4.5% dividend yield and have been paying increasing yearly dividends for 15 years. Their 5-year dividend growth rates sit at 8.8%.

This adds +$68.60 to my annual income.

 

I DRIP’d another share of DUK @ $81.94.

Duke Energy operates through three segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and Commercial Renewables. I am familiar with them because I live in one of the primary places that they operate. This was just another DRIP purchase.

They currently sit at a 4.68% dividend yield and have been paying increasing yearly dividends for 11 years. Their 5-year dividend growth rates sit at 2.8%.

This adds +$3.71 to my annual income.

 

I purchased 50 shares of F @ $9.45.

Ford Motor Company designs, manufactures, markets, and services a range of cars, trucks, sport utility vehicles, and electric vehicles.

The stock has been pretty stagnant for a few years and with the announcement of the recent steel tariffs, it seems like Ford is due for a bit more hurting. But it’s not all gloom and doom for a dividend investor. The high yield, coupled with only a 44% payout ratio, could bring some good income for a patient investor. Potentially a risky play depending on if the Ford family wants to cut their dividend while they ride the rough waters.

They currently sit at a 6.5% dividend yield and have been paying increasing yearly dividends for 6 years. Their 5-year dividend growth rates sit at 2.8%.

This adds +$30.00 to my annual income.

 

I purchased 10 shares of CPB @ $36.74.

Campbell’s Soup is a consumer staple that manufactures and markets branded food and beverage products.

I’ve been on a consumer staple kick for a few months now and I continue to purchase shares whenever the feeling hits me.

They currently sit at a 3.8% dividend yield. Unlike most stocks that I like to purchase, Campbell’s Soup doesn’t raise their dividend every year. Instead, they usually raise their dividend every few years. For some investors, this seems to strike a chord. It doesn’t bother me. Their 5-year dividend growth rates sit at 12%.

This adds +$14.00 to my annual income.

Total : +198.51 to my annual income

Stock Sells

None.

Portfolio News

None.

Conclusion

In the month of September, I continued to grow my dividend portfolio with some good purchases of some great companies.. Please feel free to check out my new portfolio and dividend champion screener pages.

Thanks again for reading my Dividend Portfolio Update for September 2018! Until next time!

2 thoughts on “Dividend Portfolio Update for September 2018”

  1. Hey David!

    Impressive portfolio! You’re doing great! Question: what are you thoughts (pros/cons) of higher dividend yield stocks like SCM, CNSL, HRZN? I would love to hear your opinion.

    Ian

    1. Hey Ian!

      The first thing I ask myself about the higher yielding stocks is if that dividend is sustainable in the long term. There’s a tried and true mantra in the dividend growth investing community that you shouldn’t chase on dividend yield alone. And while I agree on that philosophy with them, sometimes I’ll roll the dice and “gamble”. One of my higher yielding stocks in my portfolio is $ARCC that currently between a 9-10% yield. My only advice would be to dig through those financials and make sure you know what you’re investing in. Also, if you find something great in them, feel free to share your finds with me 😉

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