Gotta love Citigroup’s 100% dividend raise

Friday reminded me exactly why I’m a dividend-growth investor.

I earned $2.04, my highest daily total of the week, from a combined four different companies … but that’s not the best part. The best part is, of those four payments, two were increases from last quarter.

One was a smallish boost, just $0.04, but the other represented a robust 100% increase. I don’t know what kind of raise you received last time your salary was boosted at work, but I’m willing to bet my house it wasn’t a 100% increase. In my experience, it doesn’t happen a ton in investing, either. That said, they say if you invest long enough you’ll see it all. This, I guess is one of those things.

Friday was a good day. It marked the fourth day of the week I received at least one dividend payment. I received one Monday, two more Wednesday and another Thursday. Friday’s haul gave me eight payments for the week.

The four dividends, which I’ll get into in a second, brought my August total to $32.31 and my 2017 mark to $192.49.

OK, let’s get to the dividends …

Citigroup

Citigroup (C) paid me $0.32 for the one share I own. That doesn’t sound all that impressive on the surface, but, considering the last payment I received from the company was for just $0.16, this quarter’s dividend represents a 100% increase. That’s right … 100%. Apparently Citi had a bunch of extra cash sitting around and someone decided it would be a good idea to throw it at the shareholders. Personally, I think it was a brilliant call. I bet the company won’t boost its dividend by quite as much next year, although that would be nice, but it is in a position to continue to ramp it up. Even with the 100% raise, Citi still has a payout ratio of just 25.50%.

Royal Bank of Canada

Royal Bank of Canada (RY) added a solid $0.69 dividend to my portfolio. This payment marked another raise, although a much smaller one as the company paid me $0.65 last quarter.

Williams Sonoma

Williams Sonoma (WSM) paid me $0.78 ($0.39/share) for my two shares … the same amount I earned last quarter. The share price has slipped a bit in the last several months (down 6% over the last three months and 13% over the course of the last year), but that doesn’t mean the company has. It recently beat earnings estimates by a few cents a share and grew its EPS by 5.17% last quarter vs. the same quarter the previous year. It also has a juicy dividend yield of 3.47% and a payout ratio under 45%.

Starbucks

I received a $0.25 dividend from Starbucks (SBUX) … same as last quarter. I only own one share for now, but think I’ll be adding a few more next month. I’m a fan of the company in general, but really like it at these prices.

Well, I guess that does it for this week. I earned $4.52 in all. If I do just a little better next week – a week in which I expect to receive dividends on all five trading days – I may be able to set a new monthly record. My best month to date, May, featured $38.43 in dividend payments.

March on!

  • Graham @ reverse the crush

    Congratulations on the 100% dividend increase from Citigroup. Though I’ve never analyzed that stock, a 25% payout ratio sounds incredible. I also got the 5% dividend raise from RY this month. Excellent company! Sounds like your portfolio is progressing along nicely. I’m sure you’ll break the $40 per month mark soon. I totalled $4.59 in dividend income in August. September will be my best month of 2017 so far. Thanks for sharing, Ben! I look forward to future reports! Take care!

    • Steady Saver

      Thanks! You can’t do much better than a 100% raise. Haha. I’m looking forward to reading your Sept. report. Have a good one.