January 2020 Dividend Income

As I write this blog post, the Bucks are continuing with their winning ways and stand a good chance of being the third team in NBA history to achieve at least 70 wins in the regular season.

While that's all fine and dandy, the more exciting aspect of the Bucks' incredible progress since head coach Mike Budenholzer took over in the 2018-2019 season is the continued progression in absolutely destroying opponents.

The Bucks' net rating of 8.47 last season was head and shoulders above the Golden State Warriors and Toronto Raptors, which was what brought the Bucks within 2 wins of the NBA Finals and likely beating a banged up Golden State Warriors team if it wouldn't have been for Kawhi Leonard's heroics in the Eastern Conference Finals and Fred VanVleet going off on the Bucks.

If there were any doubts that the Bucks could sustain such dominance going into this season, those doubts have been crushed like many Bucks opponents have been this season. Through the first 51 games of the season, the Bucks are 44-7 and have a chance at posting the best net rating in NBA history.

It's so difficult to contain my excitement and brimming optimism toward this Bucks team, but for the intent of this blog post, I'll be examining the dividends that I collected in January 2020.

Analysis:

Overall, I collected $45.81 in dividends during the month of January.

This represents a 9.3% quarterly growth rate compared to October 2019's $41.91 in dividend income and an even more impressive 77.5% YOY growth rate compared to the $25.81 in dividend income received in January 2019.

Breaking this down further by account, I collected $38.77 in dividends from 13 companies in my Robinhood account, $6.77 from 3 companies in my Webull account, and $0.27 from 12 companies in my M1 Finance account.

There were numerous developments that were responsible for the $3.90 increase in my dividend income compared to last quarter.

Starting with the Webull account, the $0.74 in dividends that I received from Albemarle (ALB) came as a result of my purchase of 2 shares of the company as detailed in my September 2019 Dividend Stock Purchases post. Dividends across my PM and MO positions within the Webull account remained the same.

Dividends within the Webull account managed to grow 12.3% sequentially from the $6.03 collected in October 2019 to $6.77 collected in January 2020.

I benefited from an additional $0.84 in dividends received from Altria Group (MO) as a result of the purchase of an additional share of MO back in November 2019.

Moving to the Robinhood account, dividends received in January 2020 from WP Carey (WPC), Realty Income (O), Leggett & Platt (LEG), Ventas Realty (VTR), Philip Morris International (PM), Albemarle (ALB), PPL Corp (PPL), and Genuine Parts Company (GPC) remained the same as they were in October 2019.

GlaxoSmithKline (GSK) also paid an additional $0.24 in dividends in January 2020 compared to October 2019, which was entirely as a result of a sequentially higher dividend from one quarter to the next.

PepsiCo (PEP) paid its final dividend of 2019 in September 2019, which explains why dividend income was $0.00 from the company in October 2019. This added $1.91 in dividend income from October 2019 to January 2020.

Eastman Chemical Company (EMN) announced a dividend increase in December, which boosted my dividend income by $0.12 from October 2019 to January 2020.

Rounding out dividend increases in the Robinhood account, Iron Mountain (IRM) also announced a dividend increase in October 2019, which increased my dividend income by $0.03 for January 2020.

Dividends received within the Robinhood account managed to increase 8.8% from the $35.63 received in October 2019 to the $38.77 received in January 2020.

Factoring out the $1.91 in PEP dividends that were as a result of timing, dividends received actually grew 3.5% sequentially from October 2019 to January 2020.

Factoring out the impact of PEP not paying dividends in October, but paying dividends in January, dividends across the M1 Finance account remained the same.Concluding my changes in dividend income from October 2019 to January 2020, the only change in the M1 Finance account was once again the payment of PEP's dividend in January 2020, whereas the dividend was last paid in September 2019. This increased my dividend income in the M1 Finance account by $0.02 compared to October 2019.

Concluding Thoughts:

Dividends across the board in my 3 taxable brokerage accounts managed to remain the same or grow when including the impact of PEP's dividend payments.

I'm satisfied with the quarterly dividend growth and the YOY dividend growth that represents nearly a doubling of total dividend income is a reflection of just how effective dividend investing can be even when contributing as little as I have on an absolute basis.

Given that I recently purchased my first car on my father's line of credit that I'll be repaying in the next month and that I need to save up for parts, I expect fresh capital contributions to be relatively limited over the next couple months.

I wasn't expecting to find a car this soon and that explains why I was forecasting that I would pass $1,000 in forward annual dividends in March. In light of my exciting news, I'm not expecting to reach this milestone until late May of this year.

Discussion:

How was your month in terms of dividends received? Did you receive dividends from any new companies during the month of January?

As always, thank you for reading and I would appreciate any comments that you are free to leave in the comment section below!