December Dividend Income

01 Jan 2020 14:17
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After 32 years of clocking in and out of work and religiously saving 10% annually every year, in good times and bad, I have decided to share my monthly dividend income to show what regular saving and investing can accomplish.

For the month of December I made $3,090; an increase of 25.1% versus this time last year. I target a growth rate of 12.5% and as I predicted last month it appears the bulk of my purchases and dividend raises seem to impact that last month of a quarter which was validated.

For the year I made a total of $‭32,382.65‬ which was a 14.4% increase from my 2018 dividend income and almost a full 2% better than my targeted growth rate of 12.5%. Hopefully 2020 will be as kind to me.

In regards to buying, I increased my positions in Pfizer (PFE), IBM (IBM), Goodyear Tire (GT) and started a new position in Brookfield Property (BPR). I did have a rare sell when I sold-off Westwood Holdings (WHG) which does not look capable of supporting the dividend going forward and this sell will not affect my dividend income until the second quarter of 2020.

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In my M1 Finance account, I continued with my weekly $120 contribution for a total of $600. The overall dividend yield of my M1 pie decreased yet again to 3.238%, There were no dividend cuts so this was all attributable to market returns as the DOW & S&P 500 continue their streak to record levels.

Overall my M1 Finance accounts are finally starting to gain dividend momentum as it contributed $7.68 to this month’s dividend totals. Not breaking any speed records but it is nice to see whole dollars versus cents.

I also provided a link to my M1 Pie for those interested in seeing all of the individual holdings.
https://m1.finance/NCB--FZCZ

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My age 53 goal (I’m 51 for those not in the know) improved by 0.48%. This was lower than last month but not surprising due to selling of my Westwood Holding (WHG) position.

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For those not familiar with my Age 53 goal, I plan in 7 year increments and targeted to have 57% of my expenses to be covered via dividend income and to be at 115% for my next 7 year target at age 60. Why 115%? This was based on a multiple bear market/crash analysis I performed back in 2018 that showed my optimal portfolio to withstand a long term bear market with high inflation would be to have dividend income of 115% of expenses and the equivalent of 9 months of expenses in cash.

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