Dividend Income Update – May 2016

Summer is here in the great state of Georgia and just like I know it will be HOT in Atlanta every summer, I know every month I will have great companies send me some of the cash they made.  Companies call these cash payments dividends and it is a way for them to share some of the profits with their owners.  And since we own stock or shares of these companies, we are part owners.

I love investing in companies that pay us cash (dividends) every month because it will be these dividends that we actually live off of in the future.  I want our portfolio to be everlasting.  Meaning, I don’t want to have to decide in the future when and how much (of our portfolio) I need to sell to support us.  I want to have a strategy that keeps me from worrying about “what if” we run out of money.

So what companies do we own that paid us in May?

 

  1. Kinder Morgan Inc. (KMI) – $11.73
  2. Starbucks Corporation (SBUX) – $4.60
  3. Realty Income (O) – $10.40
  4. STAG Industrial (STAG) – $8.01

Total dividends received in the month of May = $34.74

 

As of right now, we don’t own many companies that pay in the 2nd month of each quarter, so I will need to address this as we build this portfolio over the years to balance things out a bit.  Realty Income and STAG pay us every month which helps smooth things out, and I will probably add a couple more monthly payers when we start adding to the portfolio again.  If you are new to our journey then you should know that we are using all of our extra cash to knock out our remaining debts… you can read why HERE.

I have now been tracking this portfolio for one year and I know that we were paid $29.76 in May of 2015, Kinder Morgan cut its dividend and we have added Starbucks to the mix since then, but regardless, we still had a 16.7% increase from last May.  I’ll take that kind of raise any day!

Let’s discuss Starbucks for a minute…This is the first dividend we have received since investing $1,353 back in March.  A few months ago, many people got upset about Starbucks changing the way they calculate their rewards program to earn free coffees.   Here’s an idea… create your own rewards program by being an owner instead of (or in addition to) a consumer.  We have essentially “Earned” 2 or more “Free” coffees every quarter for the rest of our lives.  Don’t get me wrong I still need you consumers (my wife is one of them) out there buying those lattes to aid in our early retirement, I just want you to think and be an owner in the items you consume.

Just in case you are thinking that these amounts are too small and won’t matter much in the long run, let’s run some projections and use our handy little crystal ball.  The dividend paid per share is $.20 and I own 23 shares that I bought for $1,353, paying us a little more than $18.50 this year.  The average rate of dividend increases over the last 3 years has been 23.6%.  Now, let’s assume we never add another dollar and Starbucks continues to increase their dividend by 23.6% every year for the next 30 years (highly unlikely, but let’s have some fun).  Those 23 original shares would grow themselves into paying $14,500 a year in dividends and be worth just north of $1,000,000…how’s that for a rewards program!?

When it comes to money, you must have a plan!  If you don’t, someone or some business will come around with a plan to separate it from you.

Thank you for stopping by and reading…please leave a comment I really enjoy them, even if you need to make up a fake name!! haha

 

Subscribe to receive a notification via your email when I have a new post go live.

 

 

Image courtesy of cooldesign at FreeDigitalPhotos.net

19 Comments

  1. Investment Hunting

    Congrats on a good dividend month. Please use your Starbucks dividends to buy coffee, it will help all of us 🙂
    Investment Hunting recently posted…Monthly Dividend Income – May 2016My Profile

    Reply
    1. ourdimeourtime@gmail.com (Post author)

      haha, I know plenty of people that will aid us all in our journey, even if I don’t. Great progress on your end, congrats.

      Thanks for stopping by.

      Reply
  2. No Nonsense Landlord

    Great job. It all takes time. I am up to about $2K a month, mostly due to IVV, IVW and DVY. Dividends grow fairly quick, hopefully at 5%+ per year.

    Reply
    1. ourdimeourtime@gmail.com (Post author)

      Thanks! You have to start somewhere right? I like DVY too for folks who don’t want to own individual companies…I use SCHD some in my kids custodial accounts at Schwab. Thanks for stopping by!

      Reply
  3. DivHut

    Great job with your May dividend income. Just stay consistent with you investments and be patient. These dividends take a while before they really start to roll in but in the meantime you can enjoy watching your income grow bit by bit. Kind of nice to know you have a couple coffees waiting for you with that dividend. As you stated, “think like an owner.” Most do not. Thanks for sharing.
    DivHut recently posted…Dividend Income Update May 2016My Profile

    Reply
    1. ourdimeourtime@gmail.com (Post author)

      Thanks DH,

      Patience is key, it is so hard not to invest right now as we are saving all cash for a new vehicle and getting rid of all our consumer debt…once that is done well start adding to the portfolio pretty heavily. Even with a relatively small portfolio right now it is still fun watching it grow itself month after month, I can’t wait to start feeding it! Most people only know how to be a consumer, they have never learned about the benefits of owning assets…probably why majority of Americans live paycheck to paycheck. Thanks for stopping by!

      Reply
  4. easydividend

    hi, I started to track my income in jannuary too. Everyone has to start at some day. Patience will bring success.

    I dont own shares of starbucks, but maybe it is worth a look.
    thanks for sharing!

    best regards
    easydividend recently posted…Warum Dividenden wenn genug Optionsprämie generiert wird?My Profile

    Reply
    1. ourdimeourtime@gmail.com (Post author)

      Tracking your money is one of the key first steps. I really enjoy tracking it although it’s relatively small, but it is motivating watching it grow every month and it keeps me focused on the long run. Thanks for stopping by.

      Reply
  5. MrSLM

    Great job, got some really nice names on that list. I’m thinking seriously of picking up some Starbucks stock myself, might as well get back some of that money I keep spending there haha!

    Reply
    1. ourdimeourtime@gmail.com (Post author)

      That was my thoughts exactly, haha. The money used for that purchase is actually in my wife’s 401k, so I gave her some options on what to buy and she wanted Starbucks. Works for me, I think they are a cash cow and are still expanding…and they just so happen to sell an addictive product. I just read an article today talking about how they have more money in their pre paid accounts than most banks!! That is incredible. Thanks for stopping by.

      Reply
  6. ZJ Thorne

    I never considered balancing dividend returns by month received. That’s something I need to think about if I get into dividend investing.

    Reply
    1. ourdimeourtime@gmail.com (Post author)

      I wanted to know when and how much I get paid by each company…I can look months into the future and be pretty sure about how much I will bring in. This will be key once we get it built high enough to completely live off of. It will also allow me to strategically add companies that pay in certain months to smooth out our payments…again not so much a big deal now, but it would be nice to keep it someone consistent once we start taking the dividends in cash. Thanks for dropping by!

      What is your strategy for investing now?

      Reply
  7. Thias @It Pays Dividends

    Nice job on your May dividend income! It would be nice if Starbucks increased their dividend 23% every year!

    Reply
    1. ourdimeourtime@gmail.com (Post author)

      Thank you sir! Yep, that would certainly make me happy…maybe we’ll get for a few more years at least. The company itself could more than double depending on how the China market plays out, that will be a lot of cash they will need to do something with. I will gladly take some of it, haha. Thanks for stopping by.

      Reply
  8. Dividend Diplomats

    Great month Chad! I also love the Starbucks comment haha I’d rather be in your shoes here…let’s own the company versus paying for their product and earning a free reward every once and a while. On second thought, maybe you should encourage people to buy so they can hopefully help you increase your dividend 🙂

    Keep up the great work!

    Bert

    Reply
    1. ourdimeourtime@gmail.com (Post author)

      Thanks Bert. I didn’t even think about it that way until I started writing the post and then it hit me…I have essentially secured free coffees for life and I never have to step foot in the store again! My wife is definitely in the group that will make sure we continue to see great dividend increases, haha. Thanks for stopping by buddy, I love the monthly dividend roundups you guys do…good stuff.

      Reply
  9. mr MB

    GL with the progress! I find these blogs an inspiration for me to follow, and hopefully obtain a similar standing in life. Keep up your progress, keep on with posting

    Reply
    1. ourdimeourtime@gmail.com (Post author)

      Hey thanks Mr. MB….I’m not sure how this comment went by without me noticing but I appreciate you stopping by. I firmly believe you can do anything you set your mind to, all it takes is a little discipline and hard work. Good luck on your journey!

      Reply
      1. mr MB

        I like to be under the radar ?

        Reply

Leave a Comment

Your email address will not be published. Required fields are marked *

CommentLuv badge