Here we are again, at the beginning of September 2017. Another month has passed by and I am writing my monthly report on dividend income. August was a rather slow month in terms of dividend income with just a few payments from the US. Nether the less, any payments counts. I try to invest more money each month into new companies. Since I am having some extra expenses at the moment, each and every payment helps me out. Look at me, two years ago I didn’t even have any passive income and now I am already counting on it. As usual I dug through my old pictures to find one for this post. I found this one I took over three years ago when I spend most of the summer in Prague. With that said, let’s look at the dividend income for August.
August 2017 brought the following dividends:
No dividends from my Australian Shares
European and US shares in Euro:
General Mills 7.86
Realty Income 3.77
Omega Healthcare 38.03
Procter & Gamble 8.19
Kinder Morgan 5.63
Total dividend: 83.64 €
As usual I do apply the latest exchange rate to calculate the overall amount in Australian Dollar. August 2017 brought me $124.52 AUD. This means August is a way below average month for dividend income. To put this number in perspective we just look at the following chart comparing my monthly dividend income.
As shown above, August has been a rather lower income month. I got six payments from my investments in the US market. Of course there is the monthly dividend payer that so many blogger own, Realty Income. The other payments also came from rather well-known companies like, Omega Healthcare, Procter & Gamble and so on. The only downturn on this is that the US Dollar gets weaker against the Euro as I am writing this. The quarterly payment I received in Euro is therefore lower than what I used to get three month ago. Then ago, I live in Australia, so technically I have to add a third currency in all this. I think everyone that invests international in stocks is aware of the fact that sometimes the currency rate works against you and sometimes it works in your favour.
Ok, let’s forget about exchange rates and look at the dividend growth rate. Compared to August 2016 with $60.26 AUD to 2017 with $124.52 AUD I end up with a sweet 106.63 % growth rate. Double dividend income compared to last year feels really good to be honest. This is exactly where I want to be, steady growth every month. As always it’s good to look at the overall dividend growth comparing the whole year 2017 to 2016. Looking at the following table we can see that I am already 54.96 % ahead of 2016 and there are still four month to come till the end of the year. One thing I am not including in these reports but I do calculate for myself is a forecast for dividend income for the next 12 month. I can therefore confidentially say, yes I will double my income by the end of the year!
Since my report last month I also do include any new investments I bought during the month. I bought twice in August.
24 shares of Altria for 1347.30 Euro
26 shares of Ramsay Health Care for $1943.95 AUD
Altria is one of the companies I already owned before and I used the setback in the price to average down on my investment. Altria is and will be a stable dividend payer in my opinion. The second investment is new, Ramsay Health Care, a health care provider I bought over my Australian bank account. This company should pay me about 2.4 % of dividend yield. The company had a nice growth rate in the past and this is the main reason why I invested in it. Unfortunately as I am writing this post, my investment in ramsay health care is already 10 % down. Guess I should have waited two weeks to buy, oh well. Besides my new investments I also did build up my cash reserve to $2500 AUD. I will build this up in the next few month, because having an actual reserve for emergencies and for opportunities at the share market became more and more important.
As always, I like to end these posts with my calculated forward dividend income for the next twelve month. With the new acquired shares this month, dividend growth and the latest exchange rates my dividend income going forward for the next 12 month sits at $346.55 AUD. Compared to last month’s report that’s over $16 AUD more! I love this so much. With big steps I am going my way to a solid $400 AUD average monthly income. Thinking about that I am investing for less than two years this is awesome!
Speaking of, I estimate that in September I will bring in over $400 AUD in dividend from all the great companies I am invested in. I certainly can’t wait.
Full Disclosure: Long in all above mentioned securities.