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Dec 31 2016

Dividend Income Report for December 2016

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December is done, and with it 2016. Here in the Pacific Northwest, our “White Christmas” arrived early, as a cold front and snow storm came through here in the middle of the month and several days later there was barely any trace of snow in the city.

While the weather can be rather unpredictable, dividend payouts arrive right on schedule which is one of the best features of dividend income. Was Santa good to me in December? Let’s do the numbers and find out…

AWP $ 41.00
BGY $ 38.00*
CHW $ 21.00*
CIK $ 22.00*
CLM $ 54.19*
DHY $ 40.25
DMF $ 12.30
DSM $ 22.83
EAD $ 10.88
EDF $ 38.70*
EHI $ 32.00
EXG $121.95*
FGB $105.00
HQL $ 40.00
** $ 1.20
NCV $ 45.50
OIA $ 4.30
PFN $ 36.00
RA $ 69.85
VFL $ 16.50
TOTAL $773.45
* Includes Return of Capital
** My employer’s stock, which shall remain anonymous.

December’s dividend income ended well with a total of $773.45. That’s not an all time high for me, but it is my 4th best month ever. Not bad, not bad at all.

First, the bad news for December. A couple stocks suffered dividend cuts. EHI’s dividend was cut from 9.63 cents to 8 cents per share, which is a 16.9% or $6.52 drop. But that dividend cut feels like a slight nick compared to RSO’s dividend cut, going from 42 cents to 5 cents per share, an 88.1% or quarterly $55.50 drop (!!!). Yeah, these cuts are going to hurt a bit, taking $25.00 off my projected monthly dividend payouts. I estimate it will take 4-5 weeks to recover from this damage. Ugh!

Given the extreme dividend cuts by DHT (who recently slashed its dividend to 2 cents per share) and RSO, I think its time to consider selling these two positions off, even at a loss. With their wretched yields of 1-2%, I can invest the cash into better yielding stocks, which will help mitigate some of the damage from the dividend cuts mentioned above.

December does have some good news. HTR and HHY merged to become Brookfield Real Assets Income (RA). My 200 shares of HTR and 500 shares of HHY became 351 shares of RA with a monthly dividend of 19.9 cents per share. The monthly dividend payouts from HTR and HHY were $38.00 and $30.00 respectively, for a combined $68.00 per month. The monthly dividend payout from RA is $69.85, which is a nice little $1.85 increase over HTR and HHY’s $68.00. A $1.85 increase isn’t exactly big bucks, but any dividend increase is always welcome.

Also in December I made 5 stock buys (PNNT, PNNT, CODI, AWP, EDF) that added $43.10 to my projected monthly average dividend income. Nice!

After all the new stock buys and dividend cuts, my projected monthly dividend income is now $767.57. Certainly an improvement, but not as much as I had hoped given the recent batch of stock buys. But this does mark an important milestone, as as my projected monthly dividend income now meets (and *barely* exceeds) my minimum monthly mortgage payment of $767.43. At last my largest regular monthly expense, housing, is now covered (excluding property taxes) by dividend income. This is a goal I’ve dreamed of reaching for a long time, and it’s a great way to end the year on a high note.

Happy New Year! And may 2017 be kind to your investing quest for greater passive income.

Image Credit: jarmoluk (pixabay.com)

 

10 comments

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  1. Passive Income Dude

    Great job! Keep up the pace and I’m looking forward to continue following your journey. December was a great month for me, but my other months aren’t nearly as high.

    Take it easy,

    Passive Income Dude

    1. Dividend Quest

      Thanks for the kind words Dude. That’s the way it is with dividend investing, some months are going to be better than others and some months are going to be worse. As long as the ups and downs are trending upwards over time, you’re golden. Happy New Year!

  2. Doug

    Awesome Job those cuts stink but looks like you are still bringing in a boatload. Keep it up and let’s see how far up you go in 2017. Happy New year

    1. Dividend Quest

      Thanks for visiting Doug! Yeah, dividend cuts are always a bummer. Which is why I often say that my quest for dividend income has been a four steps forward and one step back process. Setbacks will always happen (especially for my dividend investing strategy), which is why I have a diversified portfolio and I persevere and just keep pushing forward anyway. I don’t dwell on the fact that, If not for dividend cuts, my portfolio would now probably be bringing in around $1000 every month. Happy New Year!

  3. Dividend Life

    Hi DQ,
    $700+ of passive income is awesome – congrats!

    Your portfolio looks pretty complicated to me (not that it takes much to confuse me). So I’d definitely consider getting out of some of the expensive funds e.g. EHI – 1.7% fees are way too high.

    Best wishes for 2017!
    -DL

    1. Dividend Quest

      Thanks for visiting Dividend Life! My portfolio has probably grown a bit complicated over the past 8 years since I began in 2008. That’s the price for diversifying, I guess. EHI’s fees are pretty high (well into mutual fund fee range) considering that the average ETF’s fee is around 0.53%<>, but even after the slight dividend cut it’s getting a 10.0% yield for me, so the high fee is…tolerable.

  4. Investment Hunting

    Santa was very good to you in December. It looks like we were both good boys, Santa paid me $ $796.87. He probably meant to give both of us $800 but needed to keep some money back to pay for reindeer fuel.

    Congrats on a fine month

    1. Dividend Quest

      Thanks for stopping by IH. Yep, Santa was good to us both (and to many other investors, thanks to the post-election “Trump Bump” the market has experienced). Congratulations for your nice Christmas dividend gifts. The fun thing about dividend investing is that it feels like Christmas morning every month and quarter when those dividends appear in one’s account, doesn’t it?

  5. leguf (Carlo)

    Your monthly dividend is fantastic, as always! Happy New Year!

    ciao – leguf

    1. Dividend Quest

      Thanks for visiting! Happy New Year to you too! Per maggiori dividendi nel nuovo anno! (To more dividends in the new year!)

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