Dividend Income – May 2019

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.

Month2019
2018
+/-
Total€ 765.01€ 1,163.80
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%
June€ 103.13
July€ 50.96
August€ 190.84
September€ 125.87
October€ 54.34
November€ 71.56
December€ 116.98

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.

Summary

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.

16 Comments

  1. Div.Income June 4, 2019 at 8:01 pm

    Hi,

    congrats on your May numbers. I especially like your Allianz income. Wish I had to them also on my list.

    Cheers

    Reply
    1. Snugfortune June 5, 2019 at 5:11 pm

      I like Allianz a lot. Hight yield, good dividend growth (latest increase came in at 12.5%), decent capital appreciation.
      I would add more but it’s already my second largest holding.

      Reply
  2. BrokeInvestor June 7, 2019 at 2:27 pm

    Amazing month SF, you smashed your dividend record by a big margin! The single amount from Allianz is impressive in itself 🙂
    I like your approach to focus on casf flow, not value of the portfolio. As history shows, stable companies increase their dividends even during recessions and that’s one of the biggest advantages of DGI strategy.
    P.S. Your graphs look very well 🙂

    Reply
    1. Snugfortune June 7, 2019 at 4:21 pm

      Thanks, BI:) I love these stable/boring companies. Sometimes I have to smile when people think that dividend paying stocks don’t have enough growth to achieve a good total return. In fact, the funny thing is that a lot of these stable/boring companies beat the S&P 500 in the long run when it comes to total return. Lately I’ve used FastGraphs to check and find out that this is really the case. I looked on a 20yr period:
      -CLX: Total annualized return of 10.5% VS S&P 500 of 5.7%
      -PEP: Total annualized return of 7.5% VS S&P 500 of 5.7%
      -D: Total annualized return of 9.4% VS S&P 500 of 5.7%
      And I can go on with many other names..
      I mean even many utilities are often beating the index. Not many people would expect that. But take D, NEE, WEC, SO..they all have a higher annualized ROR than the S&P 500 on a 20yr period. So high total return and boring dividend stocks work together very well.
      In effect, dividends are an important part of the total return. And businesses that have a long track record of paying (and increasing) dividends also often provide good total return figures.

      Reply
  3. Engineering Dividends June 9, 2019 at 6:04 pm

    Wow! A blowout dividend number, SF. Congratulations. You just skipped right over the 200s. Even more impressive is that the 84% YoY growth number was from your 2nd best month ever. Nice.
    I shared 4 of your May dividend payers.
    Did you receive any dividend raises in May?

    Reply
    1. Snugfortune June 11, 2019 at 11:29 am

      It felt good to skip the 200s in May:)
      However for the rest of the year I would be more than happy to reach 200/month.
      In May two of my holdings have announced a dividend hike:
      -Clorox (CLX): +10.4%
      -Fuchs Petrolub (FPE): +5.6%
      (good point: I will include the dividend raises/reductions in the following monthly reports).
      Cheers
      -SF

      Reply
  4. Dividend Diplomats June 11, 2019 at 3:53 am

    Woah, SF. That is a month right there! Keep up the great work my friend. That 84% dividend growth was disgusting. I love how you have already surpassed your 2015 dividend income total in one month. Just awesome.

    Bert

    Reply
    1. Snugfortune June 11, 2019 at 11:43 am

      Thanks, Bert!
      I’m definitely happy about the May result.
      It’s amazing how baby steps turn into bigger steps as time goes by.
      -SF

      Reply
  5. Dividend Deluge June 11, 2019 at 12:48 pm

    Wow SF, that was an amazing month! I wish I could add some German stocks to my portfolio, but the dividend withholding tax and the application for refund sounds like too much work for now.

    Reply
    1. Snugfortune June 11, 2019 at 1:20 pm

      DD, I hear you when it comes to tax refund application.
      That is also the reason why don’t buy stocks from certain countries.
      I hope that one day there will be no taxes on dividends at all. It would make things much more easier ha:)
      -SF

      Reply
  6. PassiveCash June 12, 2019 at 8:09 pm

    Hey SF, nicely done. I’m a huge fan of charts and graphs, I analyze them to death. I like your cumulative graphs. Most of the blogs in the community, including my own, use bar graphs. I think I like yours better as it shows the growth rates better. Your 2019 dividend income is clearly showing accelerated growth over 2018. It’s almost exponential (but that’s probably because the payment shift you mentioned). So there’s my quick analysis to go along with the “adda-boy”.
    Congrats, keep truckin!

    Reply
    1. Snugfortune June 13, 2019 at 1:50 pm

      Hi & welcome PassiveCash!
      Analyzing charts and graphs to death..I’m suffering from this disease too ha!
      Glad you liked the visuals. Personally, I like to use the bar graph for the monthly comparison and the mountain graph for the cumulative comparison.
      Both of them do a good job visualizing the performance. And so far I’m very happy with the performance in general. In 2019, from January to May, income is up by 70% compared to the same period last year. It’s amazing and I can’t wait to see the final result at the end of the year.
      All the best
      -SF

      Reply
  7. Dividend Daze June 13, 2019 at 4:47 pm

    Congrats! That is huge. Puts my month to shame lol. Basically doubled your monthly dividend record. Hope to see more months like this going forward.

    Reply
    1. Snugfortune June 13, 2019 at 5:40 pm

      Thank you, DD! May has been a great month for my portfolio.
      But I must honestly say that Daimler’s payment shift had a major contribution to this performance boost.
      So basically I got less in April and more in May. I take it as long as the income is growing on a cumulative basis.
      -SF

      Reply
  8. Young Dividend June 14, 2019 at 10:17 pm

    Great start. Keep at it during good times and bad, and this portfolio will take you places.

    Reply
    1. Snugfortune June 16, 2019 at 10:19 pm

      Thanks, YD!
      This portfolio hasn’t experienced bad times yet. Investing in raising markets feels great and comfortable.
      But it’s a different game in a bear market. MV of the portfolio can drop by 20%, 30% or even more. And since nobody likes losses, it will be hard and painful to observe that.
      However that is the reason why I put my focus on the cash flow instead of stock price appreciation.
      Mr. market can correct the market value of my portfolio easily. But he will have a hard time correcting the cash flow. That’s for sure.

      PS: I’m a huge fan of your site and your journey. It’s impressive how you manage your portfolio by building those high-quality companies up in size. Keep it up, mate!
      All the best and thanks for the visit.

      Reply

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