July portfolio update

July, like every month, was a busy one for my portfolio.

I started or added to five different positions, 40 companies paid me dividends and I kicked off a brand new DIY DRIP (dividend reinvestment plan) to help me keep track of what my reinvested dividends are up to.

Purchases

I deposited $230, ($136.75 less than last month, but still more than nothing) and put the money to work immediately. Here's a list of the stocks I bought:

  • OKE (1 share for $51.98)
  • NRZ (2 shares for combined $32.11)
  • INTC (1 share for $34.42)
  • T (2 shares for $74.31)
  • F (1 share for $11.15)

NRZ and OKE were the start of new positions while T, INTC and F added to ones I've already established.

My forward annual dividend income jumped by $12.59 (OKE/$2.98, NRZ/$4, INTC/$1.09, T/$3.92 and F/$0.60), up to $395.64, which I'm pretty happy about. Each purchase – this month's, last month's, next month's, etc. – adds to my passive income stream and, by reinvesting the dividends, I can boost the stream even more.

Dividends

I was paid $25.46 by a combined 40 different companies in July – an 18.75% increase from the $22.90 I earned by the same handful of stocks in March.

Here's a list, broken up by date, of the dividends I received in July:

  • 1st (ADP/$0.57)
  • 3rd (KO/$0.37 and GPC/$0.68)
  • 5th (BIP/$0.43, EMN/$0.51, HPE/$0.07, HPQ/$0.13, COH/$0.34, KMB/$0.97 and NKE/$0.18)
  • 6th (RCL/$0.48, TU/$0.38, TUP/$1.36, BBY/$0.34 and DPS/$0.58)
  • 10th (MRK/$0.47 and MO/$0.61)
  • 11th (WFM/$0.18)
  • 12th (ITW/$0.65 and OMC/$0.55)
  • 14th (RSG/$0.32, BEN/$0.20, STWD/$0.48, WPC/$1.00, CINF/$0.50 and LEG/$0.36)
  • 15th (CAH/$0.46 and DTE/$0.83)
  • 17th (FITB/$0.14 and POR/$0.34)
  • 24th (MKC/$0.94 and DGX/$0.45)
  • 25th (GE/$0.48)
  • 26th (CSCO/$3.77 and CMCSA/$0.16)
  • 27th (MDT/$0.46 and PMT/$0.47)
  • 28th (FL/$0.31, SYY/$0.33 and DOW/$2.76)
  • 31st (CPB/$0.35 and JPM/$0.50)

I earned dividends from at least one company on 16 of the month's 31 days, more than half. Some were first-timers so, uh, welcome to the club HPE, CMCSA, FL, COH, GPC, TU, WPC, STWD and PMT. Of the remaining handful, WFM, MDT, CAH, LEG and POR each raised their quarterly payments by a few cents here and there.

DIY DRIP

Robinhood is almost perfect. Almost.

Its slick interface makes buying and selling stocks a breeze and commissions are non-existent. Buy what you want, sell what you want as many times as you want … all for free. One thing it doesn't offer, though, which is a pretty big deal for those of us who are dividend-growth investors, is any sort of a dividend-reinvestment plan.

No worries … I figured out an alternate plan that I think will work pretty well for me. The biggest advantage to a DRIP is it's free. With Robinhood, though, every trade you make is free, so I see that as less of an issue. The other key thing about DRIPs, though, is they put your money back to work, using the dividends earned from a particular company to buy more shares of that company, even partial shares.

Robinhood doesn't allow you to purchase partial shares, so I just decided I'd start using the dividends I receive each month to buy another dividend-paying stock at the end. For July, I used the $25.46 worth of dividends to buy a share of GE for $25.48 (I floated the extra $0.02). This new strategy won't necessarily help my portfolio any – I was already reinvesting all my dividends anyway – but at least now I'll be able to kind of track things a bit better. For now, one month into the new system, I've turned just more than $25 into a share of GE and the $0.96 annualized dividend that comes with it.

That does it for July. If you're interested in reading my past monthly portfolio updates, here's a few for ya:

  • Graham @ reverse the crush

    Great dividend increase over March! Thanks for sharing your progress.

    I keep hearing so many great things about that Robinhood App too. Unfortunately, it’s not available in Canada yet. Personally, I think you’re better having to choosing where to allocate the dividends rather than dripping them automatically. Thanks again for sharing!

    • Thanks for following along. I agree about allocating the dividends on your own. It’s more fun having more control.

    • Steady Saver

      Love, love, love Robinhood. And I agree, always nice to have control of where your dividends are going. Thanks for following along!