Archive for the ‘Dividend Income’ Category.

2020-02 Dividend Income Report

Here is the dividend income report for February, 2020.

The monthly dividend income came out to $208.18. The yearly income total for 2020 through the end of the month was $196.17.

The income for February, 2019 was $229.17, and the yearly income for 2019 through the end of February was $138.45.

I am skipping January since there was not much income. Just the money market funds. The bond funds do not pay out in January.

I am writing this from notes I took before the markets went haywire due to the Coronavirus. I will go into more detail in my post about my March income. So I might write something here that is contradicted by what I write later.

One of the blogs that I follow is Dividend Growth Investor. I consider this to be one of the better dividend growth investing blogs out there, but recently the author had a post that said some things that I disagree with (or more accurately, they recently sent an older post to their mailing list subscribers that I disagree with).

The author is generally against dividend ETFs. I am not sure I agree with that. Keeping track of individual stocks is a lot of work. The author says that dividend ETFs are “Good for beginning investors who are still learning and have less than $10,000.” I think you need a lot more than $10K to go into individual stocks. At least $100K. Maybe even a million. If you have less, you wind up buying very small amounts, and you have a lot to keep track of. For 3M (MMM), I had 10 shares, and each quarter I was getting 0.08 shares. It took seven years to buy two shares. One argument they give against dividend ETFs is “Investors have no say about which stocks the ETF holds.” Yes and no. You can look at the criteria of the index and then pick an index you like.

Granted, I have no idea how well the Dividend Aristocrats will hold up. We will see who is right. I think that companies that have been increasing dividends for 25 or more years will do pretty well. But these days, “pretty well” is relative.

One claim the author made that I do not agree with is that an S&P 500 Index fund could be a dividend growth fund. They recommend IVV by iShares. I might move some money into a broader index fund as a temporary refuge, but I think for dividend investing the broader indexes are a bad idea. Yes, general index funds (not targeted towards dividend investing) have increased their dividends over time based on the dividends from their constituent companies. But that is not their main focus, so I do not think they should be considered dividend funds. Cash flow is better than capital gains. The author says Amazon, Facebook and Google might pay a dividend someday. And maybe they won’t. A dollar in a stock that does not pay a dividend is a dollar wasted. Why put money in dead weight?

One fund the author recommends (with disclaimers) is Schwab US Dividend Equity ETF (SCHD) (ETFdb page here, Schwab page here)  It tracks the Dow Jones U.S. Dividend 100 Index. To be eligible, stocks must be in the Dow Jones U.S. Broad Market Index, and have paid a dividend for at least 10 years. Unlike the S&P Composite 1500, Dow Jones U.S. Broad Market Index does not filter out companies that are not profitable. (Here is the “Financial Viability” criteria from the methodology document for the S&P Composite 1500: “The sum of the most recent four consecutive quarters’ Generally Accepted Accounting Principles (GAAP) earnings (net income excluding discontinued operations) should be positive as should the most recent quarter.“) However, the Dow Jones U.S. Dividend 100 Index methodology document states the index ranks the stocks on four factors:

  • Cash flow to total debt
  • Return on equity
  • Indicated dividend yield
  • Five-year dividend growth rate

It ranks all eligible stocks, and then picks the top 100. If it looks at dividend growth rate, I guess maybe this is a dividend growth index. I will have to look into this one.

It does seem like even though Dow Jones bought S&P that there are some differences between the DJ indices and the S&P indices. The S&P indices (at least the domestic ones) seem to filter out companies that have not made a profit in the past year. This is probably why Tesla is not in the S&P 500. When it does make a profit, it seems to lose at least the same amount the next quarter. The S&P indices seem to combine automation and profit. We will see what happens to this index going forward.

Note: Not all S&P Indices look at financial metrics. Under “Financial Viability” for S&P Total Market Index, the methodology document states “There is no financial viability requirement for index eligibility.” According to ETFdb.com, the iShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks the S&P Composite 1500,  but the prospectus available from the ITOT iShares page says ITOT tracks “the S&P Total Market Index™(TMI) (the “Underlying Index”), which is comprised of the common equities included in the S&P 500® and the S&P Completion Index.” Perhaps the fact that the index is called “TMI” is a warning. According to its page, the S&P Completion Index “comprises all members of the S&P TMI Index except for the current constituents of the S&P 500®.” So it looks like ITOT’s prospectus chose a wordy way to describe itself. The TMI page lists some iShare funds as the official funds, including ITOT. The S&P Composite 1500 Index (which does have financial viability criteria) is tracked by State Street’s SPDR® Portfolio S&P 1500® Composite Stock Market ETF (SPTM).  That fund’s page on ETFdb.com states it tracks the Russell 3000 Index. The S&P Composite 1500 page states the ETF is SPTM (although they simply list the fund by name and do not provide a link). I do not know why the pages at ETFdb.com are incorrect as to which funds track which indices. Perhaps S&P and Russell changed funds and ETFdb.com did not know about it.

It pays to know your index. Check the home pages for your funds and your indices on a regular basis. You should only invest in about half a dozen at a time. Granted, most dividend indices are based on other indices, so you might have to look at another index to understand the one you are investing in.

It was either Ron DeLegge on the Index Investing Show or one of his guests who pointed out that one trick a lot of active managers pull is to compare their funds to Russell indices, particularly the 1000, 2000 and 3000. Very few managers compare their performance to the S&P 500, 600, 400 or Composite 1500. Unlike those S&P indices, Russell indices just look at market capitalization, and do not consider any financial metrics.

Granted, in my work 401(k) I really have few choices about where my money goes. But they put the money into an S&P 500 index fund. We should automate, but not run on auto-pilot.

Here is a table with the year-to-date amounts, the monthly amounts, and the three- and twelve-month moving averages for each February from 2012 through 2020:

Month YTD Amount 3MMA 12MMA
2020-02 $208.18 $196.17 $1259.50 $871.11
2019-02 $229.17 $138.45 $847.72 $589.58
2018-02 $126.02 $66.43 $654.60 $581.51
2017-02 $684.93 $466.05 $570.90 $511.78
2016-02 $620.16 $383.08 $524.89 $460.41
2015-02 $567.34 $353.85 $492.40 $375.72
2014-02 $496.28 $336.61 $363.62 $295.33
2013-02 $358.51 $248.39 $348.20 $287.16
2012-02 $497.58 $308.90 $337.51 $264.48

Here are the securities and the income amounts for February, 2020:

  • Vanguard Total Bond Market ETF: $176.31
  • Vanguard Total International Bond ETF: $9.71
  • Brokerage Money Market: $3.39
  • Brokerage Treasury Account: $6.76

Big Jim does not think automating something in your life means you should give up control.

Angel of the Last Judgement, 11th century, abbey of Sant’Angelo in Formis, assumed allowed under Fair Use.

 

2019-12 Dividend Income Report

Here is the dividend income report for December, 2019.

The monthly dividend income came out to $3,570.31. The yearly income total for 2019 through the end of the month was $10,474.31. I finally broke the 10K barrier.

The income for December, 2018 was $2,313.99, and the yearly income for 2018 through the end of December was $6,971.76.

One of the reasons I got more income is that I increased my stake in BND in my IRA. I also got shares of RWR in a taxable account.

I might get a premium account at ETFGuide.com. It is a site run by Ron DeLegge, the guy who runs the Index Investing Show. They do a monthly income trade using covered calls on some ETFs. He always gives the amounts based on investing $100,000. I will be investing less than that. I will email and see if it is worth it if I invest less money. I would no longer be a purely dividend investor, but it might be an extra $3,000 a year.

Maybe I will get a membership and see how the trades pan out. I can track the ETF prices without buying options. I still need to hold on to RWR for a while to avoid captial gains tax.

I am going to need more money soon. My rent will be going up by about $50/month (which is more than 20%). I am almost 50, and I will be eligible for catch-up contributions in my Roth IRA and Roth 401K. Right now I could put all the extra into my Roth 401K, but then I would have nothing left for my IRA. I will need about $7K a year.

There is an option to put my Roth 401K in a brokerage account, but the trading costs are pretty high. I can only rollover to an IRA when I leave the company. A lot of places do not offer 401Ks, so for now I am staying. I wish I could leave for a day, roll my money over and then come back.

I need a better job in general. I am not too thrilled with the technology at the job I am at, but not too many people use the technology I am interested in.

I started qigong recently. A few people have said it has changed their lives, and a few said they got better jobs. We shall see.

One thing I also did recently is I converted a small part of my traditional IRA to a Roth. I want to see how much I will pay in tax. Ron DeLegge says that now is the time to convert since tax rates will go up in a few years. The problem is I do not want to use up all my savings paying for the taxes on a conversion. He says to keep a margin of safety. Maybe he would disagree with this, but I consider my emergency savings to be my margin of safety.

I also plan on taking Ron DeLegge’s advice and come up with a written investment plan.

I still sometimes wonder if what I am doing will be enough. On one hand, if I was investing my Roth 401K from work the same way I invest the rest of my money, my totals would be higher. But I have been doing this for a while, and I am still not seeing the wild compounding I was expecting. I started going all-in on dividend growth investing in 2010. (I do not include 2010 numbers in my monthly posts because I started partway through the year.) In the nine years I have been doing this, I have made $52,389.49. I still think going for capital gains is just the Greater Fool Theory, and I have no interest in that. We will see what happens.

Here is a table with the year-to-date amounts, the monthly amounts, and the three- and twelve-month moving averages for each December from 2011 through 2019:

Month YTD Amount 3MMA 12MMA
2019-12 $10474.31 $3570.31 $1329.54 $872.86
2018-12 $6971.76 $2313.99 $1165.08 $580.98
2017-12 $7536.98 $1837.78 $913.40 $628.08
2016-12 $6076.53 $1027.76 $605.28 $506.38
2015-12 $5472.07 $954.52 $575.86 $456.01
2014-12 $4438.02 $909.86 $481.67 $369.80
2013-12 $3406.20 $594.59 $344.05 $283.85
2012-12 $3585.01 $686.10 $386.41 $298.75
2011-12 $3091.99 $514.94 $323.40 $253.92

Here are the securities and the income amounts for December, 2019:

  • Vanguard Total Bond Market ETF: $173.12
  • Vanguard Total International Bond ETF: $10.51
  • Vanguard Utilities ETF    VPU    ETF: $216.67
  • RLI Corp: $101.33
  • RLI Corp: $23.31
  • SPDR S&P Dividend ETF: $802.33
  • SPDR Dow Jones REIT ETF (second account): $572.57
  • Vanguard Total Bond Market ETF: $180.53
  • Vanguard Total International Bond ETF: $284.98
  • SPDR Dow Jones REIT ETF: $308.68
  • SPDR S&P Global Dividend ETF: $884.40
  • Brokerage Money Market: $4.33
  • Brokerage Treasury Account: $7.55

Big Jim wonders if the first thing Olivia de Havilland thinks when she wakes up is: “Suck it, Kirk Douglas.”

Image  from Wikimedia, assumed allowed under Fair Use. Painting of the Transfiguration by Duccio di Buoninsegna (c. 1255–1260 – c. 1318–1319), aka “The Duce”.

2019-11 Dividend Income Report

Here is the dividend income report for November, 2019.

The monthly dividend income came out to $126.48. The yearly income total for 2019 through the end of the month was $6904.00.

The income for November, 2018 was $50.86, and the yearly income for 2018 through the end of November was $4657.77.

There is not a lot to report for the past month. I deployed some of my cash and bought more BND, so the income from that fund is a lot higher this month.

In other news, the Trump administration tightened the work requirements for SNAP benefits. (SNAP is basically food stamps.) While I think Trump is the worst president ever, I do not disagree with this move. At least not entirely. See news articles here at NBC News and here at USA Today. The economy is doing well, so on one hand it makes sense to tighten requirements. But what will they do if the economy slows down? Of course, that is assuming that we have a GOP president when that happens. Hopefully we will not. (I work for a company that makes and manages the benefits management server for a few US states.)

I think this might be another indicator a recession will be coming very soon. Back towards the end of the last expansion, people were talking about putting the Social Security trust fund into the stock market. Right at the worst possible time to do so.

Humans are good at contra-indicators. If/when the next recession hits, I bet a lot of states will do what they did the last two times: Cut services when people have a greater need for them, and raise taxes when people have less capacity to pay. We should have higher taxes and fewer services during the good times, and use the reserve in the bad times. When would the bad times happen? When everybody says, “Why don’t we just spend the money now?”

In other news: Trump was impeached by the House. Best day ever.

Here is a table with the year-to-date amounts, the monthly amounts, and the three- and twelve-month moving averages for each November from 2011 through 2019:

Month YTD Amount 3MMA 12MMA
2019-11 $6904.00 $126.48 $843.65 $768.17
2018-11 $4657.77 $50.86 $562.56 $541.30
2017-11 $5699.20 $560.60 $559.31 $560.58
2016-11 $5048.77 $506.98 $502.98 $500.27
2015-11 $4517.55 $460.83 $477.55 $452.28
2014-11 $3528.16 $291.27 $357.30 $343.53
2013-11 $2811.61 $252.75 $277.74 $291.48
2012-11 $2898.91 $247.99 $262.78 $284.49
2011-11 $2577.05 $246.37 $232.84 $240.81

Here are the securities and the income amounts for November, 2019:

  • Vanguard Total Bond Market ETF: $103.89
  • Vanguard Total International Bond ETF: $10.86
  • Brokerage Money Market: $4.32
  • Brokerage Treasury Account: $7.41

Big Jim says this is the best day ever.

Painting of  Rejection of Joachim’s Sacrifice by Giotto di Bondone (1267 – 1337), at his website. I actually got the image file from somewhere else, but his site has a page about it. Assumed allowed under Fair Use.

2019-10 Dividend Income Report

Here is the dividend income report for October, 2019.

The monthly dividend income came out to $291.83. The yearly income total for 2019 through the end of the month was $6777.52.

The income for October, 2018 was $1130.39, and the yearly income for 2018 through the end of October was $4606.91.

The Vanguard Utilities ETF (VPU) paid out in October instead of September. Other than that, no real news on my front.

I might make some adjustments to my 401(k) at work, like taking some money out of stocks and putting it into bonds. Stocks have been going up for ten years. That will not go on forever.

Here is a table with the year-to-date amounts, the monthly amounts, and the three- and twelve-month moving averages for each October from 2011 through 2019:

Month YTD Amount 3MMA 12MMA
2019-10 $6777.52 $291.83 $822.53 $761.86
2018-10 $4606.91 $1130.39 $561.66 $583.77
2017-10 $5138.63 $341.83 $566.34 $556.11
2016-10 $4541.79 $281.09 $508.05 $496.43
2015-10 $4056.72 $312.23 $459.42 $438.15
2014-10 $3236.89 $243.87 $368.19 $340.32
2013-10 $2558.86 $184.81 $295.19 $291.08
2012-10 $2650.92 $225.14 $285.46 $284.35
2011-10 $2330.68 $208.90 $258.17 $238.44

Here are the securities and the income amounts for October, 2019:

  • Vanguard Utilities ETF: $228.96
  • Vanguard Total Bond Market ETF: $38.18
  • Vanguard Total International Bond ETF: $10.91
  • Brokerage Money Market: $4.95
  • Brokerage Treasury Account: $8.83

Big Jim does not have much news this month.

Painting by Meister der Legende der Heiligen Cecilia, circa 1300. Image from Wikimedia, assumed allowed under Fair Use.

2019-09 Dividend Income Report

Here is the dividend income report for September, 2019.

The monthly dividend income came out to $2112.65. The yearly income total for 2019 through the end of the month was $6485.69.

The income for September, 2018 was $506.44, and the yearly income for 2018 through the end of September was $3476.52.

The international stock dividend fund did not pay as much this quarter as last quarter.

The Vanguard Utilities ETF (VPU) did not pay this month. It paid a dividend on October 1. I know it’s a first-world problem, but I am thinking of replacing it with State Street’s Utilities Select Sector SPDR Fund (XLU). XLU is State Street’s only utility ETF, and BlackRock’s  iShares U.S. Utilities ETF (IDU) has a much higher expense ratio. VPU has the most holdings. I think for the time being I will stick with it.

I am a bit surprised that State Street does not have a broader utility ETF in addition to XLU. XLU has the dividend stocks that are in the S&P500.

Fidelity has the Fidelity MSCI Utilities Index ETF, FUTY. It has the lowest expense ratio, almost as many holdings as VPU, and a nice dividend. But as I stated, I think for now I will stay put. As Buffett has stated, returns decrease and trading increases. Or maybe it was Jack Bogle.

My brokerage money market account paid $6.03 in August, and $4.86 in September. Interest rates are low and getting lower. The only reason Dolt 45 wants lower interest rates is because he owes a LOT of money. I don’t think the economy really needs it. Granted, things are not great, but I don’t think the economy is slowing down yet. I don’t think the next recession will be as bad as the one we say in 2008-2011 (depending on what country we are talking about), but cutting rates at this stage is a bad idea. Rates are historically speaking low right now. In 2006, the federal funds rate (what the Fed says banks can charge each other) was 5.25%, and the discount rate (what the Fed charges banks) was 6.25%. Right now, those rates are 1.75% and 2.75%.

A lot of people think interest rates are too high right now. Perhaps things are a lot worse than they seem. Or perhaps the whole Rethuglican Party is abandoning its supposed rock-solid principles, and just following Dolt 45’s lead. When conservatives seem inconsistent, they are really not. They are lying (whether to themselves as well as others I do not know) about what they are consistent about. It’s not about freedom, or balanced budgets. It’s about being in charge and staying in charge.

Here is a table with the year-to-date amounts, the monthly amounts, and the three- and twelve-month moving averages for each September from 2011 through 2019:

Month YTD Amount 3MMA 12MMA
2019-09 $6485.69 $2112.65 $744.85 $831.74
2018-09 $3476.52 $506.44 $430.49 $518.06
2017-09 $4796.80 $775.50 $562.76 $551.05
2016-09 $4260.70 $720.86 $505.47 $499.02
2015-09 $3744.49 $659.59 $443.06 $432.46
2014-09 $2993.02 $536.75 $353.04 $335.39
2013-09 $2374.05 $395.65 $293.78 $294.44
2012-09 $2425.78 $315.21 $283.66 $283.00
2011-09 $2121.78 $243.26 $256.81 $233.01

Here are the securities and the income amounts for September, 2019:

  • Vanguard Total Bond Market ETF: $39.47
  • Vanguard Total International Bond ETF: $11.22
  • RLI Corp: $23.25
  • SPDR S&P Dividend ETF: $694.60
  • SPDR Dow Jones REIT ETF: $264.32
  • SPDR Dow Jones REIT ETF (second account): $436.67
  • SPDR S&P Global Dividend ETF: $630.07
  • Brokerage Money Market: $4.86
  • Brokerage Treasury Account: $8.19

Big Jim pays attention to details and remembers the big picture.

 German painting from about 1518 in a museum in Austria. Image from Wikimedia, assumed allowed under Fair Use.

2019-08 Dividend Income Report

Here is the dividend income report for August, 2019.

The monthly dividend income came out to $63.10. The yearly income total for 2019 through the end of the month was $4373.04.

The income for August, 2018 was $549.51, and the yearly income for 2018 through the end of August was $2970.08.

I am considering not putting money into any REITs and going with a bank ETF. Let’s face it, the banks always win no matter what happens. I thought about going with insurance, but there are two issues. One is I am not sure how each individual insurance firm makes their money to pay the dividend. I know a lot of them invest the float. If ABC Insurance pays for their dividend by buying XYZ Oil Company, maybe I should cut out the middleman? (Granted, finance is nothing but middlemen.)

For all the shady things banks do, in some ways insurance companies are worse. One of the big stories out of Hurricane Katrina was that they tried to tell people who were covered for wind damage that they had flood damage. Granted, that was almost 15 years ago, but it is pretty shady. When someone files a claim, their back is against the wall. Not a good time for a wealthy corporation to be playing games. I read somewhere that an insurance company’s business model is basically to deny as many claims as possible.

Here is a table with the year-to-date amounts, the monthly amounts, and the three- and twelve-month moving averages for each August from 2011 through 2019:

Month YTD Amount 3MMA 12MMA
2019-08 $4373.04 $63.10 $788.78 $697.89
2018-08 $2970.08 $48.14 $549.51 $540.48
2017-08 $4021.30 $581.69 $558.23 $546.50
2016-08 $3539.84 $522.20 $493.44 $493.92
2015-08 $3084.90 $406.45 $427.26 $422.22
2014-08 $2456.27 $323.94 $348.41 $323.64
2013-08 $1978.40 $305.11 $279.05 $287.74
2012-08 $2110.57 $316.04 $280.53 $277.00
2011-08 $1878.52 $322.35 $254.56 $225.45

Here are the securities and the income amounts for August, 2019:

  • Vanguard Total Bond Market: $40.47
  • Vanguard Total International Bond: $11.33
  • Brokerage Money Market: $6.03
  • Brokerage Treasury Account: $5.27

Big Jim is banking on dividends.

“Radha Pining for Her Beloved”, 1634, at the Brooklyn Museum, assumed allowed under Fair Use.

2019-07 Dividend Income Report

Here is the dividend income report for July, 2019.

The monthly dividend income came out to $58.79. The yearly income total for 2019 through the end of the month was $4309.94.

The income for July, 2018 was $736.90, and the yearly income for 2018 through the end of July was $2921.94.

I maxed out my 401(k) with my employer, so I have more money coming in every paycheck. I transferred the extra money to my broker to keep it separate from my checking account until I put it in my Roth IRA next year, and to hopefully earn a small bit of interest. And so far, it is very small. $0.72 to be precise. For some reason the money was put in a new account at my broker, so now I have two cash accounts. I thought it would go into the money market account. I just hit the “Submit” button thinking it would go into the same account. Hopefully this will not be a big deal. I hope the shares of RWR I bought bring in enough to make up for the $100 or so I am not getting anymore.

I am still thinking about putting money into REITs. Realty Income will announce their quarterly results tomorrow. I might decide to take the plunge with them. I mentioned a few other REITs a few months ago. I looked at their financial statements, and a lot of them have wide fluctuations in net income from year to year, sometimes from quarter to quarter. I want income, not drama. Realty Income has been increasing their income for 26 years. Granted, sometimes you have to go to the fourth decimal place to see the increase; in 2013 they increased from $0.1812292 in May to $0.1815417 in June. On the other hand, they pay monthly and have more than one increase in a year.

Here is a table with the year-to-date amounts, the monthly amounts, and the three- and twelve-month moving averages for each July from 2011 through 2019:

Month YTD Amount 3MMA 12MMA
2019-07 $4309.94 $58.79 $818.06 $696.65
2018-07 $2921.94 $736.90 $548.35 $584.94
2017-07 $3439.61 $331.08 $541.56 $541.54
2016-07 $3017.64 $273.36 $464.99 $484.27
2015-07 $2678.45 $263.13 $412.44 $415.35
2014-07 $2132.33 $198.43 $333.77 $322.07
2013-07 $1673.29 $180.57 $258.23 $288.65
2012-07 $1794.53 $219.72 $261.24 $277.53
2011-07 $1556.17 $204.83 $235.96 $211.69

Here are the securities and the income amounts for July, 2019:

  • Vanguard Total Bond Market ETF: $40.59
  • Vanguard Total International Bond ETF: $11.43
  • Brokerage Money Market: $6.05
  • Brokerage Treasury Account: $0.72

Big Jim prefers dividend increases of at least $0.01. Is that too much to ask?

“The Purification of the Temple” by El Greco (1541 – 7 April 1614), at the El Greco Foundation site, assumed allowed under Fair Use.

2019-06 Dividend Income Report

Here is the dividend income report for June, 2019.

The monthly dividend income came out to $2244.44. The yearly income total for 2019 through the end of the month was $4251.15.

The income for June, 2018 was $863.49, and the yearly income for 2018 through the end of June was $2185.04.

This is the first month with income from the State Street ETFs. So far, it was a pretty bug haul. WDIV paid over $1000. I usually do not get to $4000 in income until September. This ETF has bigger payouts in June and December, and smaller ones in March and September, so I do not expect to have such a nice haul every single time.

Dividend growth ETFs in general do not always have increasing payouts every quarter. That is one disadvantage relative to investing in the individual stocks. I think this is because people are buying and selling the fund all the time, and not buying and holding. I do not know if it is hedge funds doing the trading, or if people are continually seduced by the deceptive siren song of capital gains.

I also used some of my money market fund at one of my brokerage accounts to by additional shares of RWR. I did not buy the shares in time to get the dividend. I guess I bought on the ex-record date, or something. Still, waiting three months for the first payout is not the end of the world.

Here is a table with the year-to-date amounts, the monthly amounts, and the three- and twelve-month moving averages for each June from 2011 through 2019:

Month YTD Amount 3MMA 12MMA
2019-06 $4251.15 $2244.44 $959.55 $753.16
2018-06 $2185.04 $863.49 $319.68 $551.12
2017-06 $3108.53 $761.91 $539.42 $536.73
2016-06 $2744.28 $684.76 $464.00 $483.42
2015-06 $2415.32 $612.21 $411.83 $409.95
2014-06 $1933.90 $522.86 $333.10 $320.58
2013-06 $1492.72 $351.48 $257.79 $291.91
2012-06 $1574.81 $305.84 $260.85 $276.29
2011-06 $1351.34 $236.50 $235.38 $203.23

Here are the securities and the income amounts for June, 2019:

  • Vanguard Total Bond Market ETF: $40.29
  • Vanguard Total International Bond ETF: $11.37
  • RLI Corp: $23.19
  • SPDR S&P Dividend ETF: $626.86
  • Vanguard Utilities ETF: $204.89
  • SPDR Dow Jones REIT ETF: $260.03
  • SPDR S&P Global Dividend ETF: $1006.00
  • Money Market: $71.81

Big Jim likes the big payouts, and he likes them better when they are more predictable.

Painting of the Flight To Egypt by Guido of Siena (13th Century), assumed allowed under Fair Use.

2019-05 Dividend Income Report

Here is the dividend income report for May, 2019.

The monthly dividend income came out to $150.95. The yearly income total for 2019 through the end of the month was $2006.71.

The income for May, 2018 was $44.66, and the yearly income for 2018 through the end of May was $1321.55.

I have sold some of my Vanguard ETFs and replaced them with State Street ETFs. I sold six and bought three. I hope they will all pay in C months and make my income more predictable.

As I was looking, I took a look at some of the iShares ETFs. I thought their expenses were rather high, considering how big they are. Then again, some of the State Street ETFs have high expense ratios as well. Higher than the unpredictable Vanguard. I wonder how expense ratios are calculated. Real Estate Select Sector SPDR Fund has an expense ratio of 0.13%, 33 holdings, $2.927 billion in assets, and 80.3 M shares. State Street’s other US real estate fund, SPDR Dow Jones REIT ETF has an expense ratio of 0.25%, 96 holdings, $2.373.3 billion in assets, and 24.1 M shares. (RWR has a higher dividend, so I think the higher expense ratio is worth it.) So their assets are not that far off, the more expensive one has more holdings, but the cheaper one has more than three times as many shares. Does a high share count lower the expense ratio?

I am looking at putting some REITs into my brokerage account. A couple that I am looking at pay monthly dividends. STAG Industrial has a lot of warehouses, which are becoming more important with online delivery. Blackstone just bought a logistics and warehouse company. LTC Properties, Inc. has a lot of seniors housing and health care properties, but their dividend has not increased since October 2016. Welltower is also into senior housing and health care, but they pay quarterly and they have also frozen their dividend. Ventas is also into senior housing and health care, they pay quarterly, and they have been increasing their dividend for nine years.

Another REIT that I am looking at is Easterly Government Properties, Inc. They buy buildings that are leased to federal agencies. They seem to like law enforcement. Rethuglicans always talk about cutting spending, but they never do it.

I am also looking at Gladstone Land Corporation. I am a bit on the fence about this one; I will have to look more into it. They buy farmland across the US, and they say they are still in acquisition mode. I hope so, because frankly it looks like they are doing it wrong. Their site says, “All our farms have abundant water sources”, yet they have a lot of farms in California, and two in Arizona, which are very dry, and a lot in Florida, which is Hurricane Central. They have only two in Michigan, and no others in the Midwest. For all the years I lived in Illinois, there were not that many tornadoes, and it has a lot of water. Right now I cannot access their investor relations page, so I cannot look at filings or listen to conference calls. I will try again later.

But seriously, farming in Arizona? Are you crazy?

Here is a table with the year-to-date amounts, the monthly amounts, and the three- and twelve-month moving averages for each May from 2011 through 2019:

Month YTD Amount 3MMA 12MMA
2019-05 $2006.71 $150.95 $592.51 $638.08
2018-05 $1321.55 $44.66 $398.51 $542.66
2017-05 $2346.62 $531.68 $553.90 $530.30
2016-05 $2059.52 $436.85 $479.79 $477.37
2015-05 $1803.11 $361.99 $411.92 $402.51
2014-05 $1411.19 $280.01 $304.77 $306.30
2013-05 $1141.24 $242.65 $260.91 $288.11
2012-05 $1268.97 $258.15 $257.13 $270.51
2011-05 $1114.84 $266.55 $233.03 $194.61

Here are the securities and the income amounts for May, 2019:

  • Vanguard Total Bond Market ETF: $40.47
  • Vanguard Total International Bond ETF: $10.71
  • Money Market: $99.77

Big Jim likes predictable income.

“Adoration of the Magi” by El Greco (1541 – 1614), file on Wikimedia, assumed allowed under Fair Use.

2019-04 Dividend Income Report

Here is the dividend income report for April, 2019.

The monthly dividend income came out to $483.26. The yearly income total for 2019 through the end of the month was $1855.76.

The income for April, 2018 was $50.88, and the yearly income for 2018 through the end of April was $1276.89.

I have looked at the indexes used by some of the funds I invest in, and I am selling some of my funds. I am moving my domestic funds to the SPDR S&P Dividend ETF, SDY, which follows the S&P High Yield Dividend Aristocrats Index I might put the money that was in international ETFs into SPDR S&P Global Dividend ETF, WDIV, which follows the S&P Global Dividend Aristocrats Index It has some of its assets in US firms, but most of it is in other countries.

These funds have their assets in fewer firms than the ETFs that I am selling, but they still have money in more companies than I owned when I had my money in individual stocks.

I am also thinking about moving my money market fund into Realty Income, the Monthly Dividend Company Getting monthly dividends sounds nice. They are part of the S&P High Yield Dividend Aristocrats Index (1.45% of SDY). I know Wolf Street has been blogging about the retail apocalypse (remember kids, it’s not just because of Amazon; private equity is also a big factor), but Realty Income has their quarterly calls available on their site. If I keep track of it, things might work out okay; as Andrew Carnegie said, the way to get rich is to put all your eggs in one basket and watch that basket carefully. They still increased payouts during the Great Recession, so I am sure they will do fine during the next downturn.

Besides, a lot of people who predict disaster all the time never see any good news anywhere, and never seem to reflect that they might be wrong when they see their predictions not coming true.

I find it a bit odd that index providers will license their indexes to different firms. It is pretty frustrating that many of the providers do not provide a list of constituents on their index pages. Some of them give the top ten, but not the whole list.

Here is a table with the year-to-date amounts, the monthly amounts, and the three- and twelve-month moving averages for each April from 2011 through 2019:

Month YTD Amount 3MMA 12MMA
2019-04 $1855.76 $483.26 $588.35 $629.22
2018-04 $1276.89 $50.88 $405.77 $583.24
2017-04 $1814.94 $324.66 $532.02 $522.40
2016-04 $1622.67 $270.38 $461.86 $471.14
2015-04 $1441.12 $261.30 $409.21 $395.68
2014-04 $1130.58 $196.43 $323.64 $303.18
2013-04 $898.59 $179.23 $262.82 $289.40
2012-04 $1010.82 $218.56 $274.05 $271.21
2011-04 $848.29 $203.10 $216.30 $179.46

Here are the securities and the income amounts for April, 2019:

  • Vanguard Dividend Appreciation ETF: $208.52
  • Vanguard REIT ETF: $130.79
  • Vanguard Total Bond Market ETF: $41.37
  • Vanguard Total International Bond ETF: $11.08
  • Money Market: $91.50

Big Jim prepares for the future, but not at the expense of awareness.

Painting of the Annunciation by Guido of Siena (13th Century), assumed allowed under Fair Use.