Archive for April 2021

2021-03 Dividend Income Report

Here is the dividend income report for March, 2021.

The monthly dividend income came out to $1807.93. The yearly income total for 2021 through the end of the month was $2079.16.

The income for March, 2020 was $1863.26, and the yearly income for 2020 through the end of March was $2071.44.

I am thinking about replacing VPU with another utility ETF. I know this is a first-world problem, but I hate the fact that they announce dividends at different times each quarter. Sometimes it’s on the 11th. Sometimes it’s not until the last day (and the dividend is paid the next month). I will be needing this income when I am too old to work. Granted, that might not be for a couple of decades, but everybody else can be consistent. Why can’t Vanguard? (I mentioned this here and here.)

I did buy some shares of Gladstone Land. I bought it on the ex-dividend date, but apparently I had to buy it before then to get the dividend. I still don’t understand who all these dates work, honestly. The ex-date, the record date, blah, blah blah. If I have to buy it before the 17th to get the dividend, then why isn’t the ex-date the 16th? Granted, it’s a monthly dividend, so it’s not that big of a deal.

I listened to the conference calls. I noticed that a few of the people on the calls (people in Gladstone and a few analysts) referred to COVID-19 as the “China virus”. I really do not want to give my money to right-wing whack jobs. Although sometimes right-wing whack jobs are good at making money.

There are only 2 farmland REITs. There were three in 2016: Gladstone Land, Farmland Partners, and American Farmland (NYSE: AFCO). In 2017, Farmland Partners has merged with American Farmland. So now there are two. Farmland Partners was attacked by short-sellers. There were lawsuits, and it took up a lot of management’s time. They had to cut their dividend.

There is a website devoted to farmland investing called Farmland Riches. It looks like the main way to get into farmland is to buy it directly.

I might also look into American Farmland Trust (Wikipedia page here). I don’t want to be a farmer, but I do need to eat.

LAND is not in any index, so if I bought RWR it would not be in there. I know I wrote that tracking individual stocks was a drag, but I do like the idea of a security whose income only goes up every time it pays out. I honestly do not know why the payouts of ETFs that only invest in companies that increase their dividends are so variable. I know some companies have cut or suspended dividends but the Dividend Aristocrats (normal and high-yield) only have companies that have increased payouts for at least 20 years. Few companies that have paid out that long have cut. Perhaps the number of investors in the ETF affects the payout.

I do think that investing in farmland is a good strategy. And maybe it will help preserve some of the farmland as farmland. I will have to listen in to find out what Gladstone Land would do if the “developers” wanted to buy some of their farms for a high price. Why isn’t farming considered a form of “development”? It’s not completely natural (someone decides to plant a particular crop in even rows). Someone is getting use out of it and making money. And providing food.

The payouts from RWR have been consistent, and for December 2020 and March 2021 higher than pre-COVID. Perhaps there will not be a real-estate apocalypse.

Here is a table with the year-to-date amounts, the monthly amounts, and the three- and twelve-month moving averages for each March from 2011 through 2021:

Month YTD Amount 3MMA 12MMA
2021-03 $2079.16 $1807.93 $693.05 $879.10
2020-03 $2071.44 $1863.26 $690.48 $931.10
2019-03 $1372.50 $1143.33 $457.50 $593.19
2018-03 $1226.01 $1099.99 $408.67 $606.06
2017-03 $1490.28 $805.35 $496.76 $517.88
2016-03 $1352.29 $732.13 $450.76 $470.38
2015-03 $1179.82 $612.48 $393.27 $390.27
2014-03 $934.15 $437.87 $311.38 $301.75
2013-03 $719.36 $360.85 $239.79 $292.68
2012-03 $792.26 $294.68 $264.09 $269.92
2011-03 $645.19 $229.43 $200.06 $163.15

 

Here are the securities and the income amounts for March, 2021:

  • Global X S&P 500 Covered Call ETF: $36.64
  • Vanguard Total Bond Market ETF: $127.60
  • Vanguard Total Bond Market ETF: $32.68
  • Vanguard Total International Bond ETF: $9.85
  • RLI Corp: $25.16
  • SPDR S&P Dividend ETF: $853.26
  • SPDR S&P Global Dividend ETF: $468.01
  • Global X S&P 500 Covered Call ETF: $43.11
  • Vanguard Utilities ETF: $211.62

Big Jim wants less to keep track of in his life.

Image from The Goya Foundation, assumed allowed under Fair Use. Painting “The Manufacture of Gunpowder” by Francisco José de Goya y Lucientes, or just Goya (1746-1828). Goya should have his own website.