The month of October went by so quickly in terms of dividend Income. I received my last dividend by the 15th of the month. It’s a couple days before the month is over and I am sitting comfortably in Sydney writing my monthly income post. October is one of my lower paying month for dividends, but I was able to save up some money and buy twice this month new shares. Besides that I want to focus on building up my cash reserve more. The simple reason behind that decision is that according to my calculations I should have a few thousand dollar more in there. I dug through the photos on my computer again for this post and decided to go with another picture from my road trip around Australia. This adorable little wild fox was passing us by just a few meters next to the hiking path we were taking along the coast. Good times! With that said, let’s look at the dividend income for October.
October 2017 brought the following dividends:
Australian shares in $AUD:
Crown Resorts 57.33
G8 Education 91.29
Total dividend: $148.61 AUD
European and US shares in Euro:
Philip Morris 9.91
Realty Income 3.75
Total dividend: 36.01 €
As usual I do apply the latest exchange rate to calculate the overall amount in Australian Dollar. October 2017 brought me $203.04 AUD. October is another below average month for me. Looking forward I can tell that there are more month like that to come. The chart comparing the monthly dividend illustrates this very well.
We can see that I go through a little dip in the next 3-4 month, but that’s in the future to come. Lets take a closer look at October. There aren’t too many payments this month, just 2 in Australia and 3 in my German account with all of them being from US stocks. In my opinion this month’s dividend payments from Altria and G8 Education stick out. I bought both stocks already twice so the payments are higher than they used to. In the end it doesn’t really matter, the overall dividend and dividend growth rates are what is really important. Those numbers slowly getting bigger and we are almost at the end of the year and then I compare the overall year over year growth. I got to say that I and everyone else who is actively investing in the share market and building up a passive income are very fortunate.
This is the part where it usual gets good. Being just in the second year of my investment journey the dividend growth rates are at their peaks. Thankfully October is no exception. Compared to October 2016 with just $39.00 AUD to 2017 with $203.04 AUD gives me a dividend growth rate of 420.58 %. Now that’s what I like to see! In all fairness, last year’s $39 AUD is the lowest dividend month I ever had, so obviously the growth in the coming year will be extraordinary. As always at this part I look at the dividend growth rate compared last year to the current one, and boy did I hit a milestone. With the $203 Dollar from October I finally doubled my dividend income from last year. From March till December 2016 I did receive $1590 aussie Dollar in dividends. With the end of October does my income for 2017 stands at $3195 Dollar. The best part about this is that there are still 2 month to come before the year is over! This is awesome and I can’t wait for the end of the year to come so I can crunch some numbers for the whole year.
Since a few month I also report on any purchases I did during the month. I bought twice in October from my German account.
• 39 shares of AT&T for 1322.30 Euro
• 51 shares of Omega Healthcare for 1406.33 Euro
With AT&T I did initiate a new position in my portfolio. As I am writing this, the share is already down 15 percent; bummer! Omega Healthcare on the other hand is well established in my portfolio. This is the time I bought this stock. This buy is also down 10 percent already as I am writing this. I seem to have a talent for this. In addition to these two purchases I also build up my cash reserve to $4000 AUD. That’s it for this month and looking forward I think I have to cut back a little with the rate I am investing.
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 $372.53 AUD. If I compare this to last month report that’s an increase of over $22 AUD. The big difference here makes the investment in Omega Healthcare with over 8 percent dividend yield at the moment. Well, overall I consider this to be a very successful month in my book. November should turn out better again in turns of dividend income. I certainly can’t wait.
Full Disclosure: Long in all above mentioned securities.