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Sep 06

Dividend Income Extravaganza – August 2017


Oh yeah, it’s everybody’s favorite time of the month, my dividend extravaganza!

Last month, dividends were making it rain up in this beeyotch!

Well ok, maybe I’m not at a Hurricane Harvey level of dividend rainfall (What!? Too soon?), but all my dividends get reinvested. All my side-hustle money gets invested. Almost all the money I save from my job gets invested. You get the point, I am focused on increasing my wealth through all the channels at my disposal and dividends are a two-way street. I buy companies that pay them and in return, they give me a check for being an owner.

Dividends big or small, they all bring a smile to my face. They are not pennies or dollars stacking up in my accounts, but little bits of freedom. Each and every one contributes toward my goal of financial independence. I won’t turn my nose down on a bit of freedom, would you? I don’t think you would!

So be happy for what you receive, because there is someone out there that is getting less than you. I am content with what I receive, but working towards something greater is only human. Just make sure it is a worthy goal.

I have big dreams and I plan to get there by stacking a bunch of small victories on top of each other to achieve them. Dividends are one part of the plan, but not the main focus.

I still invest heavily in stocks that pay no dividend but are growing nicely. You can always buy into the dividend later if you have enough gains from owning growth companies. So I balance my portfolio between the two.


Motif Investing = $16.82

Firstly, my IRA with Motif Investing (sign up for a free 3-month trial of Motif BLUE – I also get a free month when you sign up) brought a combined dividend total of $16.82. I won’t list each stock individually as I have just a few shares or fraction of a share with a bunch of different companies thanks to their ‘basket of stocks’ way of doing business.

If you don’t know, with Motif Investing you can purchase up to 30 stocks in a ‘basket’ for $9.95. It’s a unique idea and I wanted to try it when they first came out.

Of note though, of that amount, $8.25 was from just one company, TK.

Teekay Corporation is the parent company to three daughter companies, one of which I own (TNK). The daughter’s each specialize in different areas of oil and LNG transportation. It is a sector that is cyclical and at the low. However, things appear to be looking up for the TK family now!

TGP is the LNG transporter. The shining star of the family.

TNK is the middle child, overlooked due to the market cycle being at its low. It should rebound very well from current prices when the current cycle reverses.

TOO is the problem. Fortunately, it has taken on a partner and basically restructured.

TK gets a big piece of all this action. Right now the dividend per share is just 6 cents as it had to go defensive to weather the downturn. It used to dish out 32 cents/qtr. Expect it to be back at that rate or higher by the end of 2018.

Based on the current price of $9/share, once it starts paying a 32 cent dividend the yield will be about 14%. Of course, it won’t be at the current price when that happens. So I loaded up on a decent amount of shares. I am up about 22% on my position and collecting a current 2.5% dividend while I wait.

Not too bad all things considered.


Robinhood Brokerage $80.93

STAG Industrial, Inc. (STAG) = $1.88

This is a monthly payer, so expect to see them every month. This company focuses on secondary, underserved, markets for its warehouse locations. It is a well-run company, but quite expensive at the current price and as such I would not recommend buying this company now. I have a much lower cost basis and it pays monthly, so I will hold.

Omega Healthcare Investors, Inc. (OHI) = $55.04 

Yes, I have a LARGE position with Omega. To the dividend tune of a combined $119.04. I used to have just my brokerage position, but I picked up 100 shares in the Roth IRA this year. I told myself that I would sell my brokerage holdings, but I never did. I don’t focus on the dividends, but an 8% yield is just so juicy…

Still, it is not tax efficient to have them in my brokerage. I will sell when OHI reaches $34/share and buy something else with that money. RGR is interesting at the moment. As a side note, I was able to DRIP 4 shares into my Roth last month. Quite nice to see those ‘free’ shares hit my account.

Teekay Tankers (TNK) = $24.00

I already talked about this stock family earlier, but I will add that TNK has a minimum dividend distribution policy of 3 cents/share. It is currently at $1.40, so that makes it an 8.5% yield. I have been paid 12 cents per share before. If the oil transport cycles upward and they pay 12 cents again, you will have a yield on cost of 34%!

If not, you get the current rate of 8.5% and the knowledge that the parent company has its back. To me, that is worth a speculative position.

Sirius XM Holdings (SIRI) = $0.01

This penny is from one of the shares that Robinhood gave me for spreading the word. I love this penny! I have named it Pendrogo, and he sits in a position of honor at my desk.

The Great Pendrogo, from the holdings of Sirius.


Roth IRA $70.44

Celanese Corporation (CE) = $6.44

This is a dividend growing company that nobody ever talks about. It is in the major chemicals/materials sector and is doing quite well. I sold it recently. Why? Well, I needed to free up some cash to get into a few junior lithium miners and this company was raided by EU antitrust regulators recently. So it has a potential downside if the regulators find any wrong doing.

I was sitting on a ~$10/share profit, which went into lithium juniors GALXF and NMKEF. It is a good move so far, GALXF is up 11% and the other is up 7%.

As stated previously (OHI) = $64.00

But this money is tax-free REIT income, yeah baby!

 


To recap:

Motif investing Traditional IRA = $16.82 (+12.2% from the previous month)

Robinhood Brokerage = $80.93 (+394% from the previous month)

Roth IRA = $70.44 (+123% from the previous month)

 

For a grand amount of $168.19! (+250% from the previous month)

 

That is my money making little money babies! And me watching them?…

Whatever, I am all for it. I tell all my investments to be fruitful and multiply.

It amounts to receiving $5.43 per day! I could buy lunch with this sorta dough, but I won’t because if I reinvest it I will have even more in the future!

 

To recap, in July I earned a total of $48.02. This means August represents 250% more dividend than last month! Of course, without OHI’s heavy dividend I would have received $49.15. It appears that about $50 is a good baseline amount for me.

This was month #2 of dividend tracking. If you want to check out the first month, click here. 

Once I have more data I will have to start making fancy-dandy graphs for you guys.

Until then, keep hustling, saving, and stacking.

How are your dividends coming along? Should I go full-force into DGI investing? Let me hear from you down in a comment below. 


16 comments

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  1. Mr Defined Sight

    Way to go man! August for me is on the light side for dividends but September should be very good to me. I have a mix of dividend funds and Index funds. I can never make my mind up so I just do both. I can always change my mind and go all in on one or the other. Variety is the spice of life, or so it is said. Take care!
    Mr Defined Sight recently posted…Want an Interview? Beef up the Resume!My Profile

    1. MrDD

      MDS, you are just like myself. I have my solid base of the retirement pyramid in index funds. Then I have my single stock funds in both growth and dividend stocks.

  2. Graham @ Reverse the Crush

    Awesome month for dividends man! Congrats on the 250% gain over the previous month! I like that your broke it down into a daily average too. I often think about what expenses/costs my dividends can already cover. It’s awesome that you could afford to buy your lunch everyday with dividends. As you saw in my recent dividend report, August is a lighter month for me.

    Also, I saw your recent comment on Mr Defined Sights blog – I respect that you’ve been jobbing for the same company since you graduated. To be honest, I kind of wish I had done the same. Rather than bounce around at different jobs, I might’ve been better off if I just stayed to gain experience, worked on side hustles and stacked dividends. However, at least I’m on the right path now.

    Thanks for sharing your dividend income update, and best of luck with your goal to work for yourself! Keep it up!
    Graham @ Reverse the Crush recently posted…Personal Goal-setting & Accountability – September 2017My Profile

    1. MrDD

      I like to break it down like that. Back in 2015 I had a goal to earn $10/day in ‘extra’ income. $10 isn’t that much, but if you do it every day for a year you get $3,650! That’s a decent chunk of change. The small things add up, so long as you keep adding. Just like dividends.

      We all can look back in our lives and think about things we can change. I learned from that and now I look towards older people I respect and ask them about life so that I can make the changes they talk about right now (if it makes sense to me).

      Thanks for stopping by and commenting.

  3. Cato @thedollarbuild.com

    Awesome month of dividends! I had to laugh when I got to the Great Pendrogo. I collected a whopping $.44 from SIRI last month. Somehow I’m jealous of your lone penny. Almost makes the dividend seem more special and unique! Anyway, congrats on the money babies. Hope you have plenty more in the near future!

    1. MrDD

      Oh wow, what made you become an investor in SIRI? I bet it was the dividend, wasn’t it? 😀

      I see many more money babies in both of our futures!

  4. Mike H

    Excellent post. A decade from now you will be rolling in it each month, and you are already making great strides. Our dividend income in August came in at $4306 from OHI, ABBV, CVS, OKE, KMI and KKR. I have a largish position in OHI (3K shares) and pay a low tax rate on it of 3.8% since I have a special situation (work overseas, pay high overseas taxes on income so have a net US federal tax credits each year) so it’s a great source of income.

    As your life keeps growing, so too does the dividend train keep a rolling. Woo hoo.

    -Mike

    1. MrDD

      Thanks Mike, I am sure any DGI investor would be jumping to the moon to be receiving that much! I see healthcare and gas are doing well for you. One company in the LNG transport/storage field that has caught my eye is HMLP with over a 9% yield. Haven’t bought it yet, but looks decent at first glance.

      I was actually in a similar US tax advantaged position last year when I did over 180 days in Qatar. Really ended up paying hardly any tax the whole year! Wish I could do it every year, but the wife would kill me! 😀

  5. Mike H

    Thanks for the tip. I tend to avoid LP’s now due to the K1 hassle and will likely unload KKR if the price rises. Yeah the second month of the quarter has the health and healthcare REIT’s and mid-stream energy payers paying out.

  6. Mike H

    Qatar is a tough assignment. It’s modern and wealthy but hot and religiously conservative. It’s like Las Vegas without the booze, escorts and gambling… however expat positions usually pay well so many make the trade off. It’s tough to be separated from family. My family lives with me here in SE Asia.

    -Mike

  7. DivHut

    Great job for August between all your accounts. I see a lot of year over year green which means you are doing all the right things to grow your passive income stream. You already make enough for an daily lunch. Why not continue on the DGI path and earn a Coke with that lunch too. Then maybe two meals a day and on and on… Thanks for sharing.
    DivHut recently posted…Dividend Income Update August 2017My Profile

    1. MrDD

      Thanks, DH!

      DGI is tempting, oh so tempting, but I have to stick with a balanced blend. The growth side, while not as visible as dividends, is often substantially more than the dividend rate.

      You’re always welcome here. 🙂

  8. RichestManInLondon (@RichestManInLDN)

    nicely put together. Glad your reinvesting it all and not spending on lunch haha
    RichestManInLondon (@RichestManInLDN) recently posted…The History of Consumer CreditMy Profile

    1. MrDD

      Nope, I bring my own. Gotta keep trackin’ on my stackin’!

  9. Mr. Robot

    Great stuff and thanks for sharing! Keep building and it will only go further!

    1. MrDD

      I always strive to be better than last time. No matter how little or how slowly, as long as I keep moving forward. 🙂

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