Today’s dividend: American Airlines

There’s no such thing as a bad dividend. Today’s $0.10 payment from American Airlines is a classic example. I value each and every dividend I receive, no matter how small. The reason? That’s easy: I didn’t have to do anything (except invest in a particular company) to earn it. If you’re willing to give me a dime for doing absolutely nothing, I’ll take it.

That said, thanks, American Airlines!

American Airlines

American Airlines (AAL) isn’t a stock many dividend-growth investors talk about because, well, it’s not a dividend-growth stock. It may be one day, but it certainly isn’t right now. The company’s only been paying dividends for a few years and really hasn’t raised it’s $0.40 annualized payout at all.

Still, I invested in the company for a few reasons. For starters, it’s an airline … a very important industry that isn’t going anywhere anytime soon. The second reason, though, is I can see it becoming a nice little DGI stock in the future.

American Airlines currently has a dividend yield of 0.78% and a payout ratio of just 10.26%. Those two numbers are significant, not for what they are now, but for their potential for growth. I obviously have no idea what the company plans to do with its dividend. The simple fact it initiated a regular payout, though, means it’s at least somewhat committed to it. My hope, obviously, is that the dividend grows as the business grows … and the business will most certainly grow in the long term. As I said before, air travel isn’t going anywhere and either are its key players, which AAL is certainly one of.

This week’s steps

With this being the first trading day of the week, obviously today’s $0.10 dividend is all I have to blog about at this point. I did, however, deposit $150 into my Robinhood account this morning ($50 for each of the last three days the market was closed). I’ll be looking to throw that cash at a company later this week. Walmart (WMT) took a pretty big tumble today, so I may look into adding a share or two on weakness. I’ve also been looking at Thor Industries (THO) for awhile now. Its been boosting its dividend by more than 10% for the past three years, which is always a good sign, right?

Last week’s steps

I hauled in a $8.42 in dividends from 10 different companies Thursday, earned a combined $4.09 in dividend income from Wingstop and MMP Wednesday, bought a share of AT&T (T) Tuesday and earned a combined  $1.57 in dividends from Air Products & Chemicals and Texas Instruments on Monday.

Coupled with Friday’s purchase – a share of Canadian Imperial Bank of Commerce – I earned $14.08 in dividend income while increasing my forward annual dividend income by $7.20 last week alone.

March on!

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