Hello and welcome to my dividend income extravaganza for September 2017! This month I was mainly paid by 7 corporations, but there were 29 more payers in my Motif account.
This is the third month I have tracked my dividends, so let’s do a quick precap of my dividend income for the previous two months.
July: $48.02
August: $168.19
Total: $216.21
Wow, these dividends are adding up nicely. Tracking them really shows that all my hard work of the past is starting to bear fruit.
All these little drops of freedom bring a smile to my face every time they hit my account. Of course, they all get bundled together and thrown back into my next stock purchase. I am not eagerly waiting for them so I can go out and spend them on dinner.
No, these dividends are one tool that an intelligent person can use to help them build their financial fortress of security and freedom. Spending your dividends before you are free is a complete waste of their power. All dividends need to be reinvested. Maybe not into that same company, but into something that shows great opportunity.
While I don’t focus primarily on dividends, I still take them into consideration when I purchase a company. I would be a fool not to, they are an important part of the potential return of any company that pays them.
Let’s take a look and see what my hard work of the past has given me today.
(Disclaimer: I am not a financial advisor. Do not follow investment advice from me. Consult with a financial professional before investing.)
Motif Investing - $30.57
I never list out which companies I receive dividends from in my Motif account because they are too numerous and very little. But during the month of September, I had 29 dividends for a total of $30.57!
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 created an IRA with them a few years back. If you want to open an account, you can use this link to get 3 months of their special Motif Blue for free!
QUALCOMM (QCOM) - $4.94
Qualcomm has been battered by lawsuits, mainly from Apple. Basically, Apple stated that Qualcomm is charging too much and have stopped paying royalties. This has put a hurt on the stock, but it appears to found support in the $50-52 range.
On the good news side, QCOM purchased NXP semiconductors and expects the deal to be complete before the year ends. This will add in $9.5 billion in revenue, of which $1.9 billion will be free cash flow.
So with solid support at the $50 area, and over a 4% dividend, I think this is a decent purchase. Buy, collect the dividend, and wait for the stock price to rise.
New Senior Investment Group (SNR) - $26
This senior care facility REIT paid me $26, the highest single dividend of September. I purchased this company in my Roth IRA earlier this year as a speculative, high-yield investment. It pays over 10% (currently 11.4%)!
They have a high payout ratio though, so the threat of a cut is always present. It might be even more so as they just announced they have $296 million of asset sales under contract. With reduced assets providing income, it all depends on how they use the proceeds. They did announce they would use the money to pay off $178 million in debt. The big question is what will management use the rest of the money for?
KROGER (KR) - $12.50
I purchased 100 shares @ $21.80 after the recent big drop, so this is the first time I have received a dividend from them. After climbing back into the $24 range, they have dropped again after Amazon said they would lower prices at Whole Foods. Argh!
The market is reacting like KR is about to go under. It isn’t. Kroger pays an ok dividend of 2.4% with a very low payout ratio of just 25%. I think I will collect the dividend while I wait for the supermarket panic to subside and the share price to rise.
Archer Daniels Midland (ADM) - $5.76
This basic food processor is a steady-eddy dividend grower. It currently yields 3% with the ‘perfect’ payout ratio of 50% and 41 years of dividend growth. I love the ‘one-for-you-one-for-me’ that a 50% payout ratio represents. They still have plenty of profit to grow, while rewarding the shareholders.
Still, they appear to be a touch on the high side price-wise. The current price is $43, but I would say any potential investor should wait for sub-$40 to jump in.
United Technologies (UTX) - $3.50
This is the last of the dividends I will receive from UTX as I sold it @ $115.53. I didn’t sell due to the company being in trouble, but because I needed the money to buy a great opportunity.
That opportunity was Sterling Construction (STRL) on August 28th @ $10.65. STRL is now $15.73 for a gain of 47.7% in about 5 weeks! Cha-Ching!
I tweeted about this company shortly after I purchased it. So if you want to get in on info like this (as well as other interesting stuff I tweet), make sure you follow me HERE.
(Disclaimer: I am not a financial advisor. Do not follow investment advice from me. Consult with a financial professional before investing.)
Navios Maritime Acquisition (NNA) - $25
This is a high-yield (16%!) crude oil tanker company. I’ve been watching and buying oil tanker stocks for over a year now. The whole sector is cyclical and near/at the bottom. Could be a chance to make some really great returns when the cycle heads upward again.
For now, they are risky. The dividends continue to flow through.
STAG Industrial (STAG) - $1.88
My only monthly-paying stock. STAG buys warehouses in secondary markets where the competition is lower and then rents them out. I am sitting on a nice paper capital gain as well as enjoying a delightful 5% yield.
Good company, but I would not advise buying them at the current price of $28. $24 or under appears to be a nice entry point. Will it ever get there? I don’t know.
FOR A GRAND TOTAL OF $110.15!
Dividend increase/decrease for the month prior: -34.5%
Average Daily Dividend Paycheck of $3.67!
While it might be a low daily number, it all adds up. This $110 is enough to pay the mobile phone bill for me and my wife as well as the water & trash bill.
I don’t know about you, but having bills covered ‘for free’ is quite a nice thing to have.
99.99% of the time becoming financially free is not something that happens overnight. It takes years of investing your money. Years of waiting for that investing seed to sprout into a mature fruit tree.
That’s exactly what dividend income stocks are, fruit trees. You don’t need to cut it down to have income from it. No, it consistently provides you sustenance without the need to sell anything.
Over just the past three months I have received $326.36 from dividends alone! This is without me even being focused on buying only dividend growing stocks. If I focused just on dividends, it would be much higher.
Folks, it really doesn’t take long to see your dividend passive income increase. Especially if you are actively hustling to get more money to invest, like me.
Hustle hard now, get paid for the rest of your life. Short-term pain, long-term gain!
Go out there and get your piece!
Hustle (and dividend) onward!