2018-01 Dividend Income Report

Here is the dividend income report for January, 2018.

The monthly dividend income came out to $59.59. The yearly income total for 2018 through the end of the month was $59.59.

The income for January, 2017 was $218.88, and the yearly income for 2017 through the end of January was $218.88.

The total is a lot lower because I have sold almost all of my stocks and put my money into ETFs. I have a couple of bond ETFs. Most of the rest pay dividends, either because dividends are the focus, or they are in industries that pay higher than average dividends, like utilities and real estate.

I got some real estate because I am leaning towards the philosophy of The Index Show (brought to you by the same guy who does ETF Guide) of getting into the major asset classes of stocks, bonds, cash, real estate and commodities. I might not get into commodities because few commodities ETFs pay dividends since they are not open-ended investment companies like most ETFs. They have structures that require them to send K-1 forms and could saddle me with a tax liability. I might look into them later.

The only dividend payout was from Kimberly-Clark. I guess I sold before the ex-date, or the record date, or something. I never really kept track of all of that. I don’t think it matters if you plan on holding something for a few years. I held KMB for seven years.

I kept a spreadsheet of when all the different stocks I own and stocks I was watching paid dividends, and I had a tab for all the transactions. I just got tired of spending all that time doing that. I was expending a lot of energy on which stocks to buy. I sold Kellogg, and then it shot up after I sold it. I got tired of the roller coaster. I was kind of building my own index by hand anyway. I bought stocks with at least a 2% yield (at least at the time I bought them), with a P/E ratio less than 20, with a payout ratio below 75% that had been paying dividends for at least 5 years. That sounds like an ETF.

I was expending a lot of energy keeping track of small things. In my first cycle of stock buying, I bought as many shares as I could for $1000. Back then, that got me 12 shares of 3M (MMM). Each quarter, I got just under one-tenth of a share of MMM. Why think about that? I got tired of getting more balance between the A, B and C months. I got tired of worrying about which industry to get into or out of. Should I follow the lead of the Norway pension fund and get out of oil? Maybe. Maybe I will agonize about other things, but I felt like it was time for a change.

The ETFs that I am buying all hold more stocks than I had. Some of the stocks they own have lower yields than what I had, so it is possible my income will go down at first. It might take another ten years to reach my new high mark. I hope not.

I also have a utility ETF, which I got for the yield. I might get an insurance ETF. I might buy something again in my taxable account. Things are up in the air. The stock ETFs pay quarterly, and the bond funds pay every month except January. So this might be the last January update for a while.

Here is a table with the year-to-date amounts, the monthly amounts, and the three- and twelve-month moving averages for each January from 2012 through 2017:

Month YTD Amount 3MMA 12MMA
2018-01 $59.59 $59.59 $819.32 $614.81
2017-01 $218.88 $218.88 $584.54 $504.86
2016-01 $237.08 $237.08 $550.81 $457.97
2015-01 $213.49 $213.49 $471.54 $374.28
2014-01 $159.67 $159.67 $335.67 $287.98
2013-01 $110.12 $110.12 $348.07 $292.20
2012-01 $188.68 $188.68 $316.66 $256.77

Here are the stocks and the income amounts for January, 2018:

  • Kimberly-Clark: $59.59

Painting by Kim Hong-do (1745-1814), assumed allowed under Fair Use.

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Post created on 2018-02-10_18:30:24, last modified on 2018-02-10_18:30:24

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