Latest Dividend Increases Part VII

Hey guys the year is coming to an end, and trough my latest journey to the crypto world, where I invested in IOTA I was not that focused on dividend investing. But I am more than happy with my investment in IOTA as it is a changing technology which can be used in the future, and I am hoping for a real long term growth throughout the next years. So let’s go back the dividend investing which will be always my main strategy.

Being a dividend investor has two major advantages, first of all you do not rely that much on the changes of the share price and when the stock price is on a very low level you just collect the dividends and maybe take advantage of the low share price and buy even more stocks. Well this is normally the case, but from time to time you will also have a dividend cut in your portfolio.

  • AT&T: Yearly dividend from 1.96 to 2.00 USD 2.04% increase
  • HRL: Yearly dividend from 0.68 to 0.75 USD 10.29% increase
  • PFE: Yearly dividend from 1.28 to 1.36 USD 6.25% increase

I especially liked the increases of HRL and PFE, HRL is above my goal of 7.5% dividend increase per year and PFE shows as well now again constant increases. The 4 cent increase by AT&T was expected and given the yield on costs of 5.31% I am more than happy with that stock, as I was even able to purchase more AT&T shares at the latest dip.

Based on the numbers of shares I have of each company and the already published dividend increases it makes now an average dividend increase of 4.72%, which is way behind my goal of 7.5%.

How much more income do I generate

In total I am generating now 68.08 EUR more dividend income before tax and based on a constant FX-Rate. This is quite an increase from the last time as it was at 22.69 EUR. This change is mainly caused by some changes in my portfolio where I sold a couple of stocks I do not see any further sense in holding it.

I thought I also could mention CVS in that list above but they haven’t declared there dividend yet and through the latest acquisition plans I doubt that they will actually increase the dividend after all.

So after all my new projected full year dividend income is now at 1 605.93 EUR after tax, that is more than double the income I had one year ago. Of course a lot comes from additional investments, but dividend increases are also a small part of it and the more stocks I have the higher will be the effect of dividend increases in the future.

To sum up I have to say that dividend investing for me is still the right path, dividend cuts happen but through a high diversification you can easily compensate those cuts and as I said a couple of times dividend investing is for the long term and not for the short term, where patience and discipline are your best friends.

What is your current dividend increase rate or are you actually tracking it?

Disclosure: Long T; HRL; PFE; CVS

3 Comments

  1. Great stuff DC! We share the same increases, I have yet to incorporate those in my forward income. I’m planning to do 1 or 2 posts to finish off 2017 and will add the increases! Merry Christmas!

  2. Nice work more than doubling your projected dividend income in one year. That’s significant progress, DC. I was able to share the HRL increase. I haven’t tracked by dividend increase rate yet, but it would be an interesting exercise to start as we enter 2018.

  3. Good job! Doubling your dividend income in such a short period of time is fantastic, even if you had to make some more investments along the way to achieve it. I also initiated a position in AT&T back in October and now I’m more than happy about the latest dividend increase. At the same time, it‘s too bad that a former dividend growth machine like CVS won‘t increase its payout in the foreseeable future. But I guess that‘s still a lot better than a dividend cut.

    – David

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