I can get used to these daily dividends

Six days into October and not one has been dry in terms of dividends.

Not a single one.

I’ve gone more than six straight days with dividends – I think I had seven or eight straight a few months back – but never right out of the gate in a given month.

We all get paid for working every day … those of us who work, at least. Most of us, though, don’t literally get paid every day. Most of us earn money and wait for it to hit our bank accounts on two or three Friday’s each month.

That’s what I do.

Once my dividend stream grows into something much, much bigger than it is now – a stream my family and I can actually live off – I won’t have to wait for those magic two or three days a month. I’ll be getting paid multiple times a week … sometimes, as was the case this week, virtually every single day.

The numbers are still pretty puny at this point. Friday’s payment, for example, was just $0.47, but the best thing about small dividend payments is, over time, they grow into big ones.

Here’s a closer look at Friday’s dividend


Merck (MRK) passed along a $0.47 dividend for the one share I own. I picked it up last December for $60.76 and it’s up 6.30% since. Not great, but OK. The dividend, meanwhile, has been for the same quarterly amount all three times I’ve received it.

Considering Merck has raised its dividend each of the last five years, most recently by a penny (2.2%) last year, I expect another boost to be coming soon, although it will probably be another pretty small one.

Merck, which hangs its hat on pharmaceuticals, animal health and other healthcare services, looks to be in pretty good shape as I glance at the numbers. It has a 19.59% profit margin, a manageable 36.12% debt/capital ratio and boosted its earnings per share by 65.12% last quarter vs. the same quarter from the previous year.

Those are some pretty solid numbers.

The dividend looks OK, too, although I’m a bit concerned about the astronomical payout ratio of 102.73%. That, obviously, isn’t sustainable, although I have see worse.

The $1.88 annualized dividend represents a 2.91% yield, which isn’t bad at all. I don’t think I’m going to buy any shares of Merck anytime soon. But, I’ll keep the one share in my portfolio as long as the dividend doesn’t get sliced.

That’s all for now. Have a great weekend, guys.

March on!

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