Dividend Income Summary: Lanny's October 2020 Summary (2024)

Two months left of the year to continue investing in stocks that produce dividends and dividend income continues to flow in. The COVID-19 pandemic and presidential election completely filled the news headlines, causing the stock market to be the most volatile I have seen since March.

In October, we set ANOTHER record for dividend earnings, and it shows proof that dividend income is one of the best passive income streams. Time to dive into my October 2020 dividend income results!

Dividend Income

Dividend income is the fruit from the labor of investing your money in the stock market. Further, Dividend income is my primary vehicle on the road to Financial Freedom, which you can see through my Dividend Portfolio.

How do I research & screen for dividend stocks prior to making a purchase? I use our Dividend Diplomat Stock Screener and trade on Ally's investment platform (one of our Financial Freedom Products) - commission-free.

I also automatically invest and max out, pre-tax, my 401k through work and my Health Savings Account. This allows me to save a TON of money on taxes (aka thousands), which allows me to invest even more. In addition, all dividends I receive are automatically being reinvested back into the company that paid the dividend. This takes the emotion out of timing the market.

Growing your dividend income takes time and consistency. Investing as often, and early, as you can allows compound interest (aka dividends) to work its magic. I have gone from making $2.70 in a single month in dividend income to well over $3,500+ in a single month. That dividend income record was set in 2019. The power of compounding and dividend reinvestment is a wonderful component of the portfolio. Each and every month, whether big or small, I continue to report the passive income that dividend investing provides me. Why?

*Not pictured is my wife's dividend income above*

I want to show YOU that dividend investing makes it possible to achieve financial freedom and/or financial independence. We all start somewhere, but consistently investing, compounding (reinvesting) dividends and keeping it simple, allows you to be in a significantly better position than most. Further, if I can grow this portfolio and income stream, YOU can too.

Dividend Income - October 2020

Now, on to the numbers… In October, we (my wife and I) received a total of $839.12 of dividend income. Another record month, and we were SO close to cross $1,000 in an off-quarter-end month. We cannot wait to cross the 4-figure mark in dividend income from all of the stock investments in 2021. The road to financial freedom from dividend investing is becoming clearer. The passive income stream just continues to grow.

Despite the pandemic from COVID-19, dividend income continues to grow, due primarily to additional investment and reinvestment. In the dividend stock purchases article released earlier in the month, my wife and I invested over $4,875+ in dividend stock investments!

Further, though the dividend cuts hurt very badly, I know we did not take the worst of it. Dividend increases have also helped fuel the income growth. Dividend increases are discussed below, and that's one of the best feelings of being a dividend investor.

Here is the breakdown of dividend income for the month of October, between taxable and retirement (far right column, under "Retirement") accounts:

We had two massive dividend payments that came in from Philip Morris (PM) and Canadian Imperial (CM). In fact, we even came out with a video of Philip Morris vs. Altria (MO), in case you'd like to watch here. Do you own stock or have plans to invest in PM and/or MO stock?

We still have dividend aristocrats representing well in the investment portfolio. We have Leggett & Platt (LEG), Cardinal Health (CAH) and co*ke (KO) to name a few. In fact, we put co*ke vs. Pepsi (PEP) in an icon dividend battle of who is the best dividend stock between the two beverage companies!

I did not experience any dividend cuts during the month, thankfully. It's been an interesting time to be a dividend investor. We have been thankful for companies that have maintained their dividend and appreciated every single dividend increase. I know that's how I feel. Economy is picking back up and slowly, but surely, we'll see a normalized year. However, the second surge of COVID-19 shall make the finish to 2020 interesting.

As for our retirement accounts, we received a total of $170.10 or 20%. The other 80% was from the individual taxable portfolio that can be used for everyday expenses. I need to keep bolstering the taxable account, as that passive income stream can be accessed today/right now. However, I continue and will always maximize the 401k and IRA, as that continues to pay-off in dividends, literally.

Dividend Income Year over Year Comparison

2019:

2020:

Dividend income, year over year, is higher by $104.99. This is a 14% growth rate from prior year. This time next year, we will be pushing over $1,000. We can do this, no doubt!

I have to talk about Realty Income (O). A newly minted dividend aristocrat this year, and it's awesome seeing the dividend increases and dividend reinvestment grow the stream of income from them. It's being a landlord without being a landlord, as we discussed in our video on this REIT stock, that pays a monthly dividend!

The list continues to grow for the dividend stocks that pay dividends during this month. The main stock I am focused on is Cisco (CSCO). The reason is - I have been investing quite a bit into this technology company and I am very curious on how the dividend going forward will turn out.

Occidental Petroleum (OXY) continues to be the sore sight here. OXY cut their dividend back in Q1, and they cut it hard and deep. In fact, they cut their dividend two times this year. Most oil companies have been hanging onto their dividend, slightly cutting (or like Shell (RDS.A) - cutting and then increasing!), as they try to persevere through this economic storm the industry is in.

The plan is to continue to invest where it makes sense and beef up current positions, increase the # of shares I own and set records again in 2021.

Dividend Increases

I received 5 dividend increases in October. What's incredible is that they were all up to expectation, including one that exceeded and that one is AbbVie (ABBV). However, Visa (V) disappointed me with their dividend increase. See the dividend increase chart below:

Now, there was one SHOCKINGLY incredible surprise. Shell came back with an increase to their dividend. Love that they are trying to climb back to the previous payout they had.

November is underway and dividend increases are already starting. You can see the article below, as we showcase 6 large dividend income payers that should be increasing that dividend payout for us shareholders!

In total, dividend increases created a total of $38.52 in additional passive dividend income. I would need to invest $1,100 at a 3.50% dividend yield in order to add that income. Thank you for the increases, as I didn't have to come up with the capital to create that form of income!

Dividend Income Conclusion & Summary

The name of the game is to apply what you learn through financial education. The next steps are to maximize every dollar for investment opportunities and live life on your own terms. My plan is to demonstrate that dividend income can be a revenue engine. A revenue engine that allows you to take back control of your life. A revenue engine to help you reach financial freedom. Dividend investing, once you learn the right way, becomes easier and starts to immensely make sense!

Excited for the future, no doubt. Further, all of the investing from last year and moves this year, shows that my aim to save 60% of my income, and making every dollar count, has provided the dividend growth.

If you are just starting out on your investment journey and you aren't sure to start - please see the articles mentioned throughout this post. We are trying to bring you financial education and help you reach your financial goals.

As always, thank you for stopping by, leave your comments and questions below. Good luck and happy investing everyone!

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