Quarter 1 of 2022 is over and now we are onto looking towards Q2 of 2022. This also brings about the topic of looking at March dividends.
March, June, September and December cycle of dividends is usually the worst for me. I had mentioned this in my December income report as well. This March however has been a welcome surprise and didn’t follow the same trend.
This March has been the best month ever in dividend performance. I crossed the $100 mark for the first time so definitely a big milestone.
So overall the dividends totaled to $142.58 from 18 different companies. Most of the credit for it goes to the special dividend by Rocket companies pulling in $102.19. The special dividend from rocket was $1.01 per share paid out on March 22nd.
Dividend amounts by company
Here is the breakdown of dividends by each company.
Archer Daniels Midland
Bath & Body Works
Invesco S&P 500 High Dividend Low Volatility ETF
There were 5 companies with dividend increases.
Wells Fargo dividend increased by 25%. Dividend was $0.20 per share in December and this time around was $0.25 per share.
Archer Daniels Midland dividend went up from $0.37 to $0.40 which is an increase of about 8.1%.
A massive increase 33.3% dividend in Bath & Body Works. Dividend used to be $0.15 and now its $0.20.
3M had a dividend increase of 1 penny bringing it up to $1.49 per share. An increase of less than 1%.
Gilead science increased dividends by 2.8%, an increase of 2 cents per share in dividends.
Dividend amount by month
My previous dividend income reports did not have the amounts for January to March 2021. I went back and found my old statements to complete it for the whole 2021 year. This is really going to help with the year over year comparisons and it also makes the chart look complete.
Year over year dividend increase of a humongous 337%. The chances of seeing this level of dividends next March is probably very slim. Perhaps a more appropriate way to look at it would be by excluding the special dividend from Rocket. Year over year growth was 24% even with the special dividend removed which is still very good.
Another month down and it’s time to look at February dividends.
First feeling I got when I looked at my brokerage statement was a bit of a shock (in a good way). February dividends were above the $80 mark and I haven’t hit that number ever, so I thought there must be a mistake. Good for me there is no mistake but I had set up a recurring purchase in AT&T and didn’t think too much into it.
Alright so for February, a total of $88.86 from 12 different companies.
CVS increased its dividend by 10% and now the dividend is $0.55 per share. It was $0.50 last time around.
ABBV dividend increased by 8.5% and now is at $1.41 per share. This is a 11 cent increase per share in dividends.
I have listed a separate line item for Sirius XM. First line is for the regular dividend disbursement. The second line is for the one time special dividend that paid out $0.25 per share. This link has more details about the special dividend.
2022 has started off with a bang and not a good kind of bang. The market was down almost 6% in January alone. Considering the performance that we have gotten used to from the last two years, an almost 6% move is pretty significant. Months like this are when you can really rely on dividends to boost your overall returns.
Now onto the January performance – a total of $66.74 in dividends from 11 different companies.
There were two companies that had dividend increases.
First one is Seagate technology that raised its dividend by about 4.4%. New dividend amount is $0.70 per share and it used to be $0.67 per share.
Second increase is from Franklin resources, raised their dividend to $0.29 from $0.28 for a 3.5% increase.
Here are the dividend amounts by each company for January 2022.
It’s pretty common for people to look into dividend stocks if they’re looking for monthly income. This is especially true for people who are retired, who are nearing retirement and the early retirement FIRE movement folks.
Dividends are the portion of the profits that’s paid out to its shareholders on a regular basis. Buying stock in the company makes you a shareholder and investor. Shareholders and investors terms are used interchangeably a lot. The dividend amount and how often they pay are usually determined by the company. Majority of the companies pay every three months.
This is great but what if you use dividends as your primary source of income to live every day. Or you’re looking for some passive income every month. This is where monthly income from dividend stocks comes into play.
Here’s a list of 4 companies that pay dividends every month.
There are more companies that give a monthly income but some lack consistency, some don’t have a long history of paying dividends. The criteria I used to filter them down are –
Companies paid dividends for around 5 years or more.
No missed dividend payment during the 5 year or more time frame.
Increased dividend payments over time.
Companies fitting these criteria gives a certain level of confidence as it shows longevity, consistency and commitment to their track record. This is particularly important because we have no control over the dividend policy of the company. You have to use the information that’s available online to determine whether these companies deserve your investment.
Most of the companies in this list are REITs (Real Estate Investment Trust). REITs are companies that own real estate properties and produce income by renting or leasing out their property.
The business model of these REITs on a very basic level is very much like you buying a house and renting out to make a small profit after paying your mortgage, property tax and maintenance. On a larger scale these are big corporations that have access to a lot of money and can buy big commercial properties and rent them out to other large corporations for lease agreements that are in excess of 5 years.
Slight difference would be that they specialize in long term leases under a net lease agreement.
Here is a little bit more information about each of these companies.
1. Realty Income (O)
Realty Income is a REIT that focuses on commercial properties under a long term net lease agreement. A net lease agreement means that the renter is responsible for paying a portion or all the property taxes, maintenance costs etc. This is like having a rental property without any of the tenants problems.
Realty Income is so proud of paying dividends on a monthly basis that their company tagline is “ The Monthly Dividend Company”. Realty Income definitely has their investors in mind and know that people are mostly buying their stock for the monthly dividend. Their home page provides details on how the stock has performed since being listed in NYSE and how long they have paid dividends. I found this on Realty Income home page.
Current Dividend Yield: 4.26%
Dividend per share monthly: $0.247
Dividend per share yearly: $2.96
10 year Dividend Growth rate: 4.99%
Years paying dividend with increases: 28
Looking back to the last 10 years they have raised their dividend by an average of 4.99% on a yearly basis. Easy way to look at it is if you got $100 in dividends the first year, the second year you received close to $105 in dividends. The third year would be 5% on top of the $105 and so on. This is pretty good in my opinion since it’s above the regular inflation rate of about 2%.
Seeing an average of 4.99% annual dividend growth rate might seem very small and unimpressive because well it’s just 4.99%. Monthly dividend per share for Realty Income in 2011 was $0.141, 2016 was $0.203 and 2021 was $0.247.
From 2011 to 2016 – an increase of 44.0% in dividend payout over a span of 5 years. From 2011 to 2021 – a massive increase of 75.2%.
What’s really important to understand from this is that you can only enjoy these massive dividend increases if you have been invested in the stocks for 5 or 10 years. The 5 year and 10 year difference also demonstrates the need for being invested in dividend stock for a long period of time. The longer you are invested in a stock that raises their dividends regularly, the better you will do over time.
Not being able to see the impact of what a 5% annual growth rate is probably the reason why it’s difficult for people to grasp onto the concept of the power of compounding, but that’s a topic for another day.
2. Main Street Capital (MAIN)
This is the only company on the list that is not a REIT. Main Street Capital is an investment firm that provides long term debt and financing to lower middle market and middle market companies. That’s just a fancy way of saying providing loans to companies with annual sales up to $1 billion.
Main Street Capital has found a nice sweet with the companies they are helping out with loans. The companies they are helping out are usually too big to get any loans from the SBA (Small Business Administration) and at the same time too small to get any consideration by Wall Street. Main Street Capital as their company name is pretty smart branding if you think about it.
Current Dividend Yield: 6.0%
Dividend amount monthly: $0.215
Dividend amount yearly: $2.58
10 year Dividend Growth rate: 4.94%
Years paying dividend with increases: 11
After reading through Realty Income’s 10 year dividend growth rate of 4.99% and further breakdown of the dividend amounts in 2011 vs 2016 vs 2021, I don’t think there is a need to have the same breakdown for each company. You get the general idea behind it.
I found something very interesting about their dividend policy. They have a very conservative dividend payout on a monthly basis and have a special dividend like a bonus paid out 2 times a year. This was cut for 2020 for obvious reasons. I like that they try to be safe with this so when they have a difficult year like 2020, they are not looking to cut or pause their regular monthly dividends. The $2.58 dividend is without the special dividends so once business picks up again, the total dividends will be closer to $3.00 per share a year.
3. SL Green Realty (SLG)
SL Green Realty is another REIT. It is the largest office space landlord in Manhattan and its primary focus is to acquire more properties in Manhattan and maximize value.
I am not very sure of investing in a office space focused landlord in Manhattan with all the work from home.
SL Green Realty is a very new player in the monthly dividend game. They have had dividends since 1997 but they always paid on a quarterly basis until recently. The switch to monthly dividends occurred in March 2020. Dividends since 1997 shows a good track record but that is very deceiving. SGL fell on some hard times during the financial crash and cut their dividends to $0.1 every quarter until 2010. From 2010 onwards they have steadily raised their dividends to $0.303 every month in 2021. To make this a fair comparison, calculating the dividends on a monthly basis they have raised it from $0.035 to $0.311 over 10 years. That’s a huge 888% increase in dividends over 10 years.
Current Dividend Yield: 5.18%
Dividend amount monthly: $0.311
Dividend amount yearly: $3.73
10 year Dividend Growth rate: 24.57%
Years paying dividend with increases: 11
4. STAG Industrial (STAG)
STAG Industrial is another REIT. They focus on industrial and logistics properties – think of warehouses and distribution centers for all the online shopping you do. This is one of the companies I can think of that has done extremely well during the pandemic, especially considering that Amazon is their biggest tenant and rents about 40% of their properties.
Similar to SL Green Realty, they also paid dividends on a quarterly basis and slowly transitioned to monthly dividends in October 2013.
Dividend increase for STAG industrial is quite small and you can’t expect a big dividend hike if their history is any indication. Dividend increases have been $0.001 every year that you start seeing in January of the new year. basis every year since 2015. The tiny dividend hike is the disappointing part of owning STAG stock but I think the future is very bright for them since their main properties are distribution centers and warehouses. eCommerce sales are only going to go up from here so they are well positioned to take advantage of that.
Current Dividend Yield: 3.48%
Dividend amount monthly: $0.121
Dividend amount yearly: $1.45
5 year Dividend Growth rate: 0.86%
Years paying dividend with increases: 8
You might get the impression that I am suggesting to invest in all 4 of them. My suggestion would be to pick one or two from this list based on how you think their future is going to look like. The performance of these stocks for the last 10 years only goes so far and nobody can predict the future.
Each of these have their own pros and cons. If I had to pick two from this list I would put Realty Income first because they have paid dividends for a really long time and then I would take STAG industrial because I believe they are in an industry that has a lot of potential growth.
2021 is over and it’s time to look at the December 2021 dividends.
December pretty much follows the September and June cycle of dividends which were the worse performing months in the past. So it’s no big surprise that the December performance is a bit lacking.
Month over month comparisons seem a bit unfair because it’s not like the companies that gave dividends this month were the ones that gave dividends last month. I have settled for a quarter over quarter performance or rather trying to line up the same cycles. I am a bit excited since in a few months I will be able to do month over month comparisons which should take away some of the confusion.
From a dividend performance standpoint, I got dividends from 18 different companies for a total of $39.18 during the month of December. There were dividend increases from two companies and one company restarted dividends after pausing it for a while.
Exxon increased its dividend by a penny going from $0.87 in September to $0.88 in December.
Simon Property increased its dividend by 10% going from $1.50 to $1.65.
Ford restarted their dividend program and gave $0.10 per share in the month of December. Ford had stopped their dividend program in early 2020.
Hey, look at that. I am doing the monthly dividend income report at a more reasonable time compared to the previous months. Hoping this is a new beginning where I am much better at doing these. I wouldn’t bet on it just yet, not until I can string a few months together.
Let’s take a look at how November was, a total of $54.84 in dividends from 10 different companies.
No dividend decreases from the last time around. I am comparing it against the August 2021 dividends since that is how the quarterly cycles work out. Definitely good news.
To make this better there were 3 dividend increases.
Verizon dividend increased by a tiny smidge over 2%. Dividend per share went from $0.627 to $0.64 per share.
Texas Instruments by a whopping 12.7%. It was $1.02 in August and November was $1.15.
And finally, Sirius XM dividend increased from $0.015 to $0.022 for an increase of 47%.
I am getting to this pretty early in the month compared to my usual timeframe. I think I posted the September income report like a week ago. It’s one of the better months of dividend income and definitely a big upgrade to the September numbers. A total of $66.42 in dividends from 11 different companies.
There was only one dividend increase, Altria raised its dividend by 4.65% from $0.86 to $0.90 per share.
It’s early November and I am just getting to the September income report now. I have continued with being late to these.
September was closer to one of the worse months with a total of $37.76 in dividends from 16 different companies. Only June was worse than September. There is a good reason for this since most of the companies that paid out dividends in June paid in September as well.
Dividend increases by 6 companies.
Wells Fargo raised its dividend by 100% from $0.10 to $0.20 per share.
Discover raised its dividend by 13.6% from $0.44 to $0.50 per share.
Target dividend increased by 32.3% making it $0.90 per share; it was $0.68 per share last time around.
A bit over a 2% increase in Walgreens dividend, $0.4675 to $0.4775.
Royal Dutch Shell increased its dividend 37% from $0.35 to $0.48.
Simon property by 7.1% from $1.40 to $1.50 per share.
Another month has passed and it’s time again to update the monthly dividend income reports. I am making a habit of doing the dividend reports pretty late. I should probably have that as my new year’s resolution.
August was a worse month than July. A total of $54.83 in dividends from 11 different companies.
No Dividend increases or decreases this month. Just the usual fluctuations in the SPHD dividend
Another month has passed and it’s time again to update the monthly dividend income reports. July was a better month than June with almost double the amount in Dividends. A total of $64.97 in dividends from 12 different companies.
Dividend increases from 3 companies.
Cardinal health raised its dividend by 1% from $0.486 to $0.491 per share.
Medtronic by 5.8% from $0.58 to $0.63 per share.
Simon property by 7.7% from $1.30 to $1.40 per share. Added bonus with Simon Property is it looks like there will be another dividend increase to $1.50 for the next payout which is scheduled on 09/30/2021.
General electric is not part of the portfolio anymore after the 1 for 8 reverse split that went into effect on August 2nd. I think my brokerage (Robinhood) automatically sold it since I only had 5 shares and it wasn’t enough to form one share after the reverse split.