Today’s dividends: Microsoft, Discover and more

That didn’t take long, did it? Last year, I didn’t get to $100 in dividend income until the very end of May – a month in which I pulled in a then-record $38.43. This year, well, it only took me until today (March 8) to get to the century mark. That’s more than two full months less … and I have today’s dividends from Microsoft, Discover, Amgen and Cummins to thank for it.

The combined $3.17 pushed me to $16.01 in dividend income for the month and $100.68 for the year. The income, which I religiously reinvest, and its rate of growth has been solid. The best part, though – something those of you who follow my march know – is there really isn’t any secret to the success. It’s all about consistently investing in quality companies … companies with an established commitment to rewarding shareholders with steadily increasing dividends. That’s it.

Here’s a closer look at today’s dividends:

Microsoft

Microsoft (MSFT) has been an absolute beast for me. I only own one share, but that share has appreciated by more than $30 – I bought it for $61.33 in December of 2016 – and earned me five quarterly dividend payments worth a combined $2.01.

Today’s dividend was for $0.42, which doesn’t seem like much considering Microsoft’s share price is inching toward the $100 mark. The key, though, is I picked up my share back when it was trading at considerably lower levels, meaning my yield on cost is, and forever will be, 2.74% (at least for that one share). If I bought another share tomorrow, the yield on cost would be just 1.80% for that share. See people, that’s why it’s important to buy low and hold on for the long haul.

Discover Financial Services

Discover (DFS) passed along a $0.35 dividend today. I own one share, which I picked up for $68.66 in February of 2017. The company has a $1.40 annualized dividend with a yield of 1.82% and payout ratio of 23.99%. I’d like to see those numbers go up here in the near future, but I guess I’m happy for now.

Cummins

Cummins (CMI), which I picked up a share of for $150.42 back in February of 2017, paid me $1.08 for the third consecutive quarter. My first two dividends from the company, meanwhile, were for $1.03.

Cummins has an annualized dividend of $4.32 a share, which comes with a 2.68% yield and 70.52% payout ratio. The company has raised its payout each of the last 12 years, most recently at an average rate of 13.19% over the course of the last three.

Amgen

If you like big time divi raises, Amgen (AMGN) might just be the stock for you. My one share earned me a $1.32 dividend today – a payment which is a full $0.17 more than the $1.15 the company sent my way last quarter. In other words, they bumped the dividend up 17% … which, believe it or not, is small for the biotech company.

Amgen only has a streak of six years of dividend raises, but the raises have been, on average, better than 25% over that time. It’s current $5.28 annualized dividend represents a 2.78% yield. The payout ratio is high, well above 100%, so we’ll see how long it can keep the dividend growing.

This week’s steps

I increased my forward annual income by $2 thanks to the purchase of CVS on Monday. Tuesday featured a dividend from Valero and Wednesday saw a $1.82 dividend from UPS hit my account. I also made a handful of purchases, scooping up shares of MDC, Proctor & Gamble and Franklin Resources – which added $4.88 to my steadily growing forward annual dividend income total.

Last week’s steps

I earned at least one dividend every day last week. Royal Bank of Canada ($0.72) passed a little something my way Monday, Fastenal ($0.37) and Lazard ($1.71) paid me Tuesday and Bank of Montreal ($1.46), Ameriprise Financial ($0.83) and Simon Property Group ($1.95) accounted for Wednesday’s steps. I earned a combined $8.51 in dividend income Thursday and another $1.71 from Boeing on Friday.

March on!

2 Responses to “Today’s dividends: Microsoft, Discover and more

Leave a Reply

%d bloggers like this: