Steadying out my income stream with Omnicom

Enlight310 2

Well, that felt good.

After sitting on the sideline for what seemed like an eternity (a couple weeks or so, which is an eternity in relation to my purchase history) I finally put more of my hard-earned money to work today (Feb. 27, 2019).

This time, I went with Omnicom (OMC). The company, based in New York City, provides advertising, marketing and corporate communication services. I scooped up three shares for $224.94, increasing my forward annual dividend income by $7.80. I’m up to $234.57, so that’s good … way more than the $0 of passive income I earned before I started dividend-growth investing.

Creating a streamier income stream

I bought into Omnicom for several reasons. I like the dividend ($2.45/share annually, 3.25% yield), I like the valuation (P/E ratio under 13) and I like the business. An added bonus, though, is that it makes its quarterly dividend payments in January, April, July, and October. Why does that matter, you ask? Well, I’m on a mission to create a steady – steady being the operative word – income stream.

Omnicom helps me do just that.

Right now, after taking a quick glance at the handy Estimated Annual Income Report Chase updates for me on a daily basis, I see I’ll earn around $33 every February, May, August and November (thanks in large part to AT&T), $20 or so every March, June, September and December and, prior to the purchase, just $6 in January, April, July and October. I figure any boost I can give to the lean months is a welcomed one. That being said, thanks for helping me out in that respective, Omnicom. Ideally, even though I’m reinvesting them all right now, I’d like to earn around the same amount of dividends each month. If not so much for now, for when I make enough to live off them.

Omnicom isn’t a complete slouch when it comes to dividend growth, either. The company has been boosting its payout every year for the last five, that at an average rate of 8.57%. Considering the payout ratio is under 50%, I expect the raises will continue for years to come. Let’s hope so at least.

What are you guys and gals buying these days? Let me know in the comment section, or on social media.

Here’s an updated look at my portfolio if you haven’t taken a peek recently.

March on!

4 Responses to “Steadying out my income stream with Omnicom

  • Thanks Ben for the updates on your progress, great to see a common sense approach to saving and building wealth. I am looking forward to following your journey.

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