August Dividend Income

03 Sep 2020 21:41
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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 August I made $2,111; a decrease of -8.4% versus this time last year. This is back to back months of consecutive decreases and is the 4th out of the last 5 months to experience a YoY decrease. I know this is temporary but it does sting none the less.

Obviously some of the decreases are due to COVID but I also sold quite a few positions and finally put all that cash to work. In my previous post I identified 9 different stocks I sold out of (or greatly reduced my position) and in turn bought a total 22 new stocks. I am expecting these new buys to start paying out in the 4th quarter so hopefully these monthly decreases will be coming to an end shortly.

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I continued with my weekly M1 Finance contribution of $120 for a total of $480. The overall dividend yield of my M1 pie slightly decreased to 3.505% as the market continues its recovery.

Overall my M1 Finance accounts contributed $33.23 to this month’s dividend totals. This is my largest monthly contribution and this account is slowly gaining steam.

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) had a huge increase of 7.6%. The big jump was from my efforts of selling stocks from April thru July and then redeploying all that cash in August. I can’t wait for the 4th quarter when these new investments begin adding more income.

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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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