September Dividends

Before I outline the great month of September dividends, I have some quick notes on a couple of things. I had a small amount of cash ( ~ 6k) in my retirement brokerage left over and bought BAC with the remaining money. This is a stock that I usually don’t consider as they have a less than stellar reputation and were a lightning rod during the 2008 financial crisis. Their debt is also higher that I usually will accept. After looking at it though, I realized that the price is less than the book value of the stock and seems to offer a margin of safety. Meaning, if the bank was broken up and sold, it would be worth more per share than the current price. I decided it was worth the risk to invest in this, despite a looming recession/crash. I use the bank and like the services, despite their poor reputation, and it is attractively priced. A little lazy purchase on my part, but I can live with it.

That brings me to my next topic, the seemingly looming crash we are about to experience. I have been hearing about the crash coming for over two years and I do believe it is coming, but when ?  Other blogs I read indicate many are liquidating and sitting on cash in order to prepare for the upcoming armageddon. I have thought I may do the same but I have had bad results doing this. This is the hard part of investing for me. I want to be proactive but it rarely works for me  in practice. Just this year in January, I reallocated some cash and in the process missed out on almost ~$1000 in dividends for the year.  I am a big believer in staying invested in the market at all times as the market has an upward bias.  The market wants to go up, it is just that simple. How many recessions are followed with huge upswings? I think it is difficult to time the market accurately most of the time. I have seen many articles outlining that those that stay invested do much better over the long term. This is something I am going to question on which ever decision I make. I am not scheduled to retire for another 10 years so I have enough time to wait it out. I may pare 1 or 2 investments at some point but I am likely to ride it out and invest new money when the proverbial shit, hits the fan. Now, on to the September dividends …..

Here we go !  Another great month in the books. My September dividends sees a new all-time high for me. This is the kind of month that really validates the strategy for me. I see this and it makes me want to stick with it and ride it out until the day I retire. When I leave the investments alone, I can really see the effects of compounding the dividend reinvestments.  This month shattered my YOY total by almost 30%, and my all-time high by 18% (see June Dividends ) . Much of this was new dividend income, and some was compounding. The calculations to determine the amount of compounding were not straightforward due to a special dividend received in June but it came out to roughly 38% of the increase. The remaining was new dividends kicking in (INTC & ORI). Going forward, I should be able to get a more accurate number. Here are the totals:

 

Totals for the month were as follows:

results:                     Total: $755.15 for September               + $164.69 Month/YOY              27.89 %   Month/YOY

September Dividends

There it is, a new all-time record!!   I am loving the effects of compounding and I am hopeful that I start to steamroll a bit and eventually get over $1000/month within the next couple of years. The Mar-Jun-Sept-Dec cycle is far and away my best so I will be looking to add some income on the leaner months going forward. I won’t buy just because of the cycle but if is between two equivalent securities, I may opt to increase a leaner month. I am expecting the dollar value to continue to rise as the pile gets bigger so I am more juiced than ever to see it through. Happy investing and thanks for reading !! See you next month.

-Brian