In my nonPension portfolio, the average monthly dividend payments going forward will be $70.98. At the end of last month, the average monthly income was $69.16, so the increase month over month was 2.6%. Thanks to the disproportionate number of dividend increases during the early part of the year, the monthly average payments exceed the June goal of $69.59 by over a dollar, but since dividend increases over the remainder of the year will be slightly fewer in number, the portfolio is at risk of falling behind the monthly goal eventually. I will add some details on the choices being made in the near future to try to remedy the issue below.
Where did the increase in monthly income come from?
Penske Automotive Group, Inc. (PAG) was purchased on May 8. Almost immediately, the dividend was raised by 3%. The portfolio's average monthly income increased by about $1.24 as a result of the purchase and the subsequent dividend increase. The cash was available to purchase Penske due to the sale of NGVT, which was not producing any income as well as from leftover cash from two other sales and from when the portfolio was set up
Apple Inc. (AAPL) raised its dividend by 11% on May 2. The average monthly income is up 11 cents over last month because of AAPL's increase.
Cardinal Health, Inc. (CAH) raised its dividend by 3% on May 3. The average monthly income is up 3 cents over last month due to the increase.
Phillips 66 (PSX) raised its dividend by 11% on May 3. The average monthly income is up 14 cents over last month thanks to the PSX raise.
Bunge Limited (BG) raised its dividend by 10% on May 24. The average monthly income is up 12 cents over last month as a result.
These stocks paid out dividends that were reinvested, resulting in higher payouts going forward: ABBV, ETN, JPM, T, VZ, and WRK.
Since the expected dividend payment growth rate is still below where I would like it to be, I plan to sell another stock in June that will result in a higher dividend yield, a higher recent dividend growth, or both. Some of the stocks that are potentially on the chopping block, depending on price and valuation at the time of the sale, include CMI, HOG, JCI, JPM, and VIAB.
As you can see from the information at the bottom of the table below, the portfolio has been generally trending toward a point where the dividend yields and dividend growth rates are on track to reach the $560 monthly income goal by December 2035. I will continue to sell a stock and purchase a replacement stock every month going forward until the expected dividend reinvestment-dividend increase combination reaches a point where the expected payment in December 2035 will be $560.
| Ticker | Shares | Avg Monthly Dividends | One Year Ago | % Change |
| AAPL | 5.094 | $1.07 | $0.97 | 10.53% |
| ABBV | 9.531 | $2.03 | $1.81 | 12.28% |
| ADM | 12.443 | $1.33 | $1.24 | 6.67% |
| ADNT | 1.000 | $0.09 | $0.00 | |
| AMGN | 3.078 | $1.18 | $1.03 | 15.00% |
| AMP | 5.140 | $1.42 | $1.29 | 10.67% |
| BA | 4.166 | $1.97 | $1.51 | 30.28% |
| BBY | 16.482 | $1.87 | $1.54 | 21.43% |
| BG | 9.213 | $1.41 | $1.29 | 9.52% |
| CAH | 7.081 | $1.09 | $1.06 | 3.01% |
| CCL | 11.227 | $1.50 | $1.31 | 14.29% |
| CMI | 5.207 | $1.78 | $1.69 | 5.13% |
| EAT | 10.287 | $1.17 | $1.10 | 6.25% |
| EMN | 7.233 | $1.23 | $1.11 | 10.87% |
| ETN | 9.475 | $1.90 | $1.80 | 5.26% |
| GEO | 23.322 | $3.63 | $3.37 | 7.69% |
| GILD | 6.122 | $1.06 | $0.96 | 10.64% |
| GLW | 27.825 | $1.44 | $1.25 | 14.81% |
| HBI | 24.000 | $1.20 | $0.88 | 36.36% |
| HOG | 12.420 | $1.51 | $1.45 | 4.29% |
| HPQ | 37.907 | $1.68 | $1.57 | 7.02% |
| INTC | 14.269 | $1.30 | $1.24 | 4.81% |
| IP | 13.643 | $2.10 | $2.00 | 5.11% |
| JCI | 10.119 | $0.84 | $0.98 | -13.79% |
| JPM | 8.265 | $1.38 | $1.32 | 4.17% |
| KSS | 11.550 | $2.12 | $1.93 | 10.00% |
| LM | 16.447 | $1.54 | $1.21 | 27.27% |
| M | 12.548 | $1.58 | $1.58 | 0.00% |
| MPC | 16.515 | $1.98 | $1.76 | 12.50% |
| OHI | 16.168 | $3.40 | $3.13 | 8.62% |
| PAG | 11.000 | $1.24 | $1.08 | 14.81% |
| PFE | 15.414 | $1.64 | $1.54 | 6.67% |
| PRU | 6.254 | $1.56 | $1.46 | 7.14% |
| PSX | 6.141 | $1.43 | $1.29 | 11.11% |
| QCOM | 9.323 | $1.77 | $1.65 | 7.55% |
| R | 10.312 | $1.51 | $1.41 | 7.32% |
| T | 16.141 | $2.64 | $2.58 | 2.08% |
| TGT | 7.193 | $1.44 | $1.34 | 7.14% |
| UNP | 6.185 | $1.25 | $1.13 | 10.00% |
| VIAB | 12.301 | $0.82 | $1.64 | -50.00% |
| VZ | 10.472 | $2.02 | $1.97 | 2.21% |
| WFC | 10.211 | $1.29 | $1.29 | 0.00% |
| WHR | 3.052 | $1.12 | $1.02 | 10.00% |
| WRK | 15.621 | $2.08 | $1.95 | 6.67% |
| WYN | 7.145 | $1.38 | $1.19 | 16.00% |
| TOTAL | $70.98 | $65.91 | ||
| Overall annual increase in dividend payments | 7.69% | |||
| Overall dividend yield -- dividends reinvested | 3.23% | |||
| Approximate annual growth rate including reinvestment and increases | 11.17% | |||
| Annual growth rate needed | 11.81% | |||
| Behind goal rate by | -0.64% | |||
| End of April behind by | -0.65% | |||
| End of March behind by | -1.66% | |||
| End of February behind by | -1.71% | |||
| End of January behind by | -2.57% | |||
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