May 2018 portfolio update

From a dividend standpoint, May was a solid month for me. Not LAST MONTH solid, but still solid.

The combined $61.67 from 51 different companies wasn’t quite as much as April’s record haul of $64.17, but it was close. More importantly, it was the second straight month my DIVIDEND FARM pumped out more than $60 of dividends. Better yet, those numbers are only going up from here. I’m already up to $258.90 this year … and we’re not even half way though. For comparison’s sake, I earned $355.63 in dividend income all of last year.

I made a fair amount of purchases in May, adding to positions in NRZ and T, which will bump up my totals for July and August, respectively. I added to other positions as well, but I’ll get to that in a bit.

First, here’s a closer look at the dividend’s I received in May …

May’s Dividends

My single-biggest payment – by a mile – came from AT&T (T). The company passed along $11.50 for the 23 shares I own. I like T … and it’s a good thing as I pay the company more than $100 a month for DirecTV and internet. I always add at least one share a month no matter what as I like to buy a share when I pay my bill. The idea is to create a scenario in which AT&T pays me more per month than I pay it. It’ll happen eventually, but I still have a long way to go.

That said, the payments – the ones the company is sending my way, not the ones I’m sending to it – are starting to creep up somewhat quickly. Last quarter, in February, AT&T paid me $7.50 for the 15 shares I owned at the time. This month’s payment, thanks to the addition of eight shares, was a full $4 more … and next quarter’s, thanks to a handful of additions I’ve already made, will be at least $18. That’s another $6.50 bump.

Now, consider this: a $5 (or so) increase in the quarterly payment for the next five years, not factoring in any dividend raises, would get me to a quarterly payment of more than $100. That still wouldn’t mean I’d be getting more from the company than the company is getting from me, but I’d be a whole lot closer than I am now.

Other solid payments (for me) came from CVS and CLX, which passed along $5 and $4.80 respectively. VZ was another good one as it paid me $3.54 for owning six shares.

Here’s the complete list:

Company
Dividends
TD $0.52
DE $0.60
ORCL $0.19
GIS $0.98
BMY $0.40
DRI $0.63
VZ $3.54
T $11.50
GPS $0.24
CVS $5.00
FL $1.04
PNC $0.75
LOW $0.41
AXP $0.35
RTN $0.87
NUE $0.38
GD $0.93
CLX $4.80
APD $2.20
ABBV $2.88
ABT $0.28
HRL $0.19
PG $2.15
CL $0.42
MS $0.25
OHI $0.66
SKT $0.70
HAS $0.63
ALLY $0.13
AAPL $1.46
AMP $0.90
ORIT $2.00
CAT $0.78
ETN $0.66
TXN $0.62
AAL $0.10
FAST $0.37
MDC $0.90
COF $0.40
STZ $0.74
PAYX $1.68
WSM $0.86
C $0.32
SBUX $0.90
COST $0.57
ARTNA $0.24
PETS $0.25
RY $0.73
SPG $1.95
LTC $0.19
BMO $1.43

May’s Purchases

So, if you’ve been keeping up with the last handful of weekly posts, you know there was a stretch in which I was buying shares of EPR Properties like crazy. One week I even bought a share each and every day the market was open. I honestly love the company. Valuation seems good at current levels, management seems like it knows what it’s doing and the company invests in some awesome properties (Topgolf, anyone?).

The problem, though, is I felt like I was buying just to buy. It’s a REIT that pays monthly dividends, which would be great if I hadn’t spent the last year and a half building a portfolio that pays me 50 times a month.

After thinking about it for a bit, I decided I didn’t need to add any new companies to my portfolio, at least not now. I need to focus on building the positions I have. That said, I sold the shares of EPR for a little more than $700 and threw all the proceeds at New Residential Investment Corp. (NRZ).

In all, I bought 42 shares for $760.10 in May – shares that will earn me an extra $84 in annual dividend income. My position is up to 97 shares at an average cost of $17.54. The company makes up 6.74% of my portfolio.

Last quarter, in April, NRZ paid me $26 for 52 shares. In July, thanks to the recent additions, I’ll be getting $48.50 … unless I add a few more shares before the ex-dividend date. When it happened, the $26 payment was easily the biggest single dividend I’d received at one time. When the $48.50 hits my account, I’ll have a new single-day record to blog about.

Here’s a look at the other purchases I made this month:

Company
Shares
Price
Annual Income
T 6 $192.51 $12.00
SKT 3 $61.17 $4.20
PEP 6 $584.49 $22.26
SOHO 19 $129.90 $9.12
CAH 2 $110.98 $3.70
AEP 2 $129.62 $4.96
DAKT 3 $29.31 $0.84
NRZ 42 $760.10 $84.00
RCL 4 $429.72 $9.60
CMCSA 4 $125.08 $3.04
KHC 3 $169.83 $7.50
VZ 6 $293.64 $14.16
AVB 2 $318.06 $11.76
F 1 $11.44 $0.60
XOM 1 $78.63 $3.28
PRU 1 $95.75 $3.60
SBUX 2 $113.36 $2.40

DIY DRIP

This month, Starbucks was my pick for the DIY dividend-reinvestment plan (Robinhood doesn’t offer a plan, so I do it myself). I used $56.68 of the $61.67 of dividend income I received to buy a share of the coffee giant.

Since I started tracking where my dividend income was going, I’ve collected a basket of stocks worth $438.79 that pumps out $16.32 in annual dividends.

March on!

6 Responses to “May 2018 portfolio update

  • Howdy!

    I love reading your weekly/monthly posts. Even though I never comment it feels like we’re on this dividend portfolio journey together 😉

    I’m curious about your recent EPR sell. Could you go into more detail what motivated you to increase your position with NRZ? It’s an REIT I haven’t spent much time looking into but don’t know enough about it. Is the Dividend Yield the biggest factor?

    Keep up the great work! Really appreciate these weekly posts.

    • I like that NRZ offers a better yield. That, coupled with the fact NRZ has higher EPS and a lower P/E ratio than EPR, is what sold the decision for me.

      Thanks for following along. I really appreciate it!

  • Good job 👍 your dividends keep growing and growing. Keep it up.

  • Nice job MTM! That is some nice growth and the results are much better compared to all of last year. Keep up the great work!

    Bert

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