Week of May 21, 2018: 15 dividends and 1 purchase

Dividends grow … it’s what they do. You can help them grow by simply buying more shares of a particular company and, well, sometimes they just grow on their own.

I experienced a little bit of both this week. Of the 15 different companies that passed along a combined $9.34 in dividend income, two gave me raises and four paid me for the very first time.

This week’s dividends

Eaton (ETN) passed along a $0.66 dividend, Constellation Brands (STZ) paid me $0.74, PetMed Express (PETS) boosted my portfolio by a cool $0.25 and Artesian Resources (ARTNA) paid me $0.24. All four dividends were my first from the respective companies – dividends that add up to $1.89 worth of passive income I didn’t receive last quarter.

Paychex (PAYX) and Williams Sonoma were the two companies that offered up raises … and both were semi significant.

Last quarter, my three shares of PAYX earned me $1.50. I still own three shares, only this time those shares earned me $1.68, which equates to an $0.18 or 12% raise. Same story with WSM … my two shares earned me $0.78 last quarter and $0.86 this time around. You don’t need to be a math wiz to determine that’s an $0.08 raise ($0.04 per share) … a boost that doesn’t seem like much at first glance, but looks a bit better when you break it down by percentage.

Spoiler alert: it’s a 10% raise.

Now, think abut how nice the PAYX raise would be if I had, say, 1,000 shares instead of just three. Instead of $500 coming my way, I’d be getting $560 … and that’s without doing anything at all. Now, let’s say the company decided to boost their quarterly dividend by another $0.06 a share next year – something that’s very possible considering it’s raised its payment each of the last four. Instead of the $560, I’d be getting $620. A year later, another modest raise would mean $680 would hit my account each and every quarter … at least until another raise.

See what I’m saying? Dividend-growth investing is a great way to build and grow wealth. My positions are all fairly small now, but I’ll get to 1,000 shares of a company at some point … and I can’t wait until I do.

I wonder what my first 1,000-share position will be?

Anyway, I also earned $0.90 apiece from MDC Holdings (MDC) and Starbucks (SBUX), which is twice as much as the two paid me last quarter. In this case, the increase in income had nothing to do with raises. Instead, I added two shares of SBUX and one share of MDC to account for the growth.

Additionally, Texas Instruments (TXN) paid me $0.62, American Airlines (AAL) paid me $0.10, Fastenal (FAST) passed along $0.37, Capital One (COF) paid me $0.40, Royal Bank of Canada (RY) added $0.73 to my account, Costco (COST) hooked me up with $0.57 and Citigroup (C) paid me $0.32. I own one share of each.

This week’s purchases

I kept things really, really simple this week … and I did it by design.

I say that because, well, I noticed I’d gotten away from the foundation of my march. I finally got to 150 positions – 50 stocks that pay quarterly starting in January, 50 that pay quarterly starting in February and another 50 quarterly payers that start in March – but instead of strategically adding to those positions, I started buying more stocks … stocks that didn’t even pay quarterly dividends.

I was needlessly over-complicating things.

You probably remember LAST WEEK’S POST. I bought one share of EPR Properties (EPR), a monthly payer, all five days. Now, I honestly really, really like EPR, but the last thing I need in my DIVIDEND FARM is a monthly payer. I’m on track to get 50 dividend payments a month as it is. I certainly don’t need another.

That said, I sold my growing position in EPR (13 shares for a combined $782.99) and used most of that cash to buy another 39 shares of NRZ.

EPR pays a annualized dividend of $4.32 a share, so my 13 shares would have earned me $56.16 over the course of the next year had I held onto them. NRZ, meanwhile, costs about a third as much and pays an annualized divi of $2. In other words, I traded the $56.16 for $78. I’ll take that trade.

March on!

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