I’ve officially joined the $40-plus club

So, this is what it feels like to earn more than $40 of dividend income in a single month.

I guess I wouldn’t have known because, well, I’ve never done it before. I must admit, though, it feels pretty much exactly the way I thought it would: damn good.

One of the reasons I’m sure it feels so good is because I’ve built the passive-income stream from literally nothing. Last year at this time, I barely knew what a dividend was. I didn’t earn my first until January of this year, when I hauled in a whopping $8.25.

At the time, that $8.25 was a monster number. It’s slowly grown – last month I brought home $38.27 – and now, in less than a year, I’m officially at $40-plus.

I wish I could say it’s been a crazy ride, but, well, it really hasn’t been. Fun, exciting even, but hardly crazy. I’ve collected shares of more than 130 different dividend-paying companies and watched them go to work … nothing anyone else couldn’t do.

Today’s trio of dividends, which I’ll get to in a sec, amounted to a combined $5.52. In all, I’ve been paid $43.42 by a combined 43 different companies this month (a new record, obviously). It averages out to almost exactly $1 per dividend, which isn’t terrible considering I only own one or two shares of most of the companies in my Dividend Farm.

Today’s Dividends

UPS: I earned a combined $1.66 ($0.83/share) from UPS. I own a couple shares – shares I picked up around this time last year at an average price of $113.94. For those of you keeping score at home, that means I’m up $10.90 or 4.78%. The returns haven’t been great, but I’m honestly happy with anything in the green.

The dividend, meanwhile, has been stuck at the same rate for at least four quarters. Considering the company has increased its dividend for seven consecutive years, and done so at an average rate of 7.81% over the course of the last five, I’m guessing UPS should be delivering a raise here in the near future.

See what I did there? Deliver … a raise.

I know, that was pretty bad. I’ll just move on.

Enviva Partners, LP: EVA tossed a combined $2.46 my way ($0.615/share) for the four shares I own. For those of you who don’t know, Enviva is in the business of producing wood pellets for power generators. The company also has a killer dividend.

My four shares earned me $2.28 ($0.57/share) last quarter, which means this most recent payment represents an almost 8% raise. I earned $1.67 for three shares the quarter before that and $0.54 for one share the quarter before that. As you can see, I’ve been slowly adding to my position and, through it all, Enviva has boosted its dividend all four quarters.

Bank of Montreal: I own two shares of BMO, and received a combined $1.40 ($0.70/share) because of it. BMO, in my humble and far-from-professional opinion, is a great dividend stock. The Canadian bank’s dividend offers a 3.60% yield and that’s with a more than manageable 44.28% payout ratio.

I’ve found you never quite know what you’re going to get when it comes to the dividend – for example, next quarter BMO has already announced a $0.90/share payment – but anywhere between $0.60 and $0.90 seems to be its sweet spot.

March on!

2 Responses to “I’ve officially joined the $40-plus club

  • congrats and welcome to the club! It only gets better once you join the $100 monthly club =) You are really starting to increase those dividends so good work and keep up the good work!

    • Steady Saver
      1 year ago

      Man, I can’t wait until I become a member of that club. One of the many great things about dividend-growth investing … there’s always another goal to shoot for. Thanks for reading … and thanks for the inspiration.

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