June Dividend Income

05 Jul 2020 12:27
Tags monthly_income

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After 33 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 June I made $2,869; an increase of +13.03% versus this time last year. As planned, my dividend growth was muted due to the dividend suspension of 3 decent size holding and if not for them my growth would have been double at 26%:

  • GM - General Motors dividend suspended
  • EPR - EPR Properties dividend suspended
  • WY - Weyerhaeuser dividend suspended

There was one dividend cut for June and it was Armanino Foods of Distinction (AMNF) who cut their dividend from $0.0275 to $0.0175. I see this as temporary with an expectation that the old dividend rate will return by Q1 2021.

I spent much of June repositioning cash in other equities while also accumulating a cash pile in case the markets give back some of their recent gains from March lows. As the summer rolls on and earnings roll in I still see August as a risky time with corporations and markets starting to get a better grasp of the COVID-19 economic shutdown effects and the recovery will be longer than they initially expected.

For June I sold no stocks and started increasing my position in utilities by buying Dominion Energy (D), Duke Energy (DUK), and PPL Corp (PPL). I did not plan to start rotating into utilities for another 4 years but this recent pullback motivated me to start buying now instead of waiting. With a low rate interest environment and once Covid-19 is behind us I expect income seekers will push prices up again.

One other stock I started a new position in was Kimball International (KBAL). KBAL is an office furniture supplier to government and commercial clientele which currently is 50% off its 52 week high and has a price to book value of 1.7 versus 3.1 a year ago.

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I continued with my weekly M1 Finance contribution of $120 for a total of $600. The overall dividend yield of my M1 pie slightly decreased to 3.837% as the market continues its recovery.

Overall my M1 Finance accounts contributed $19.60 to this month’s dividend totals and is the largest monthly dividend payout to date. I did finish up my Federal taxes and received a decent refund of which I plan to redirect $1,000 to my M1 Finance account and another $1,000 to my wife’s Roth IRA account.

I also provided a link to my M1 Pie for those interested in seeing all of the individual holdings.
https://m1.finance/iCDyjkqucd1B

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My age 53 goal (I’m 51 for those not in the know) has finally begun moving forward again! May marked the last of the large dividend suspensions which stopped the negativity and my recent repositioning of cash to equites has jumped my percent complete up significantly by 7.62%.

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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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