Dividend Update – January 2018
January 2018 is in the books. There has been a lot of activity in my portfolio since last January and the dividend results this year show it. At least one of everything happened within the past year pretty much. I made some buys and sells, seen dividend increases and cuts, and the market has made some big turns. So let’s see the details of how January went for me.
CINF – $6.77
CAH – $5.15
O – $3.48
LTC – $3.30
As you can see from January 2017’s dividend post, I was paid out by 4 companies. This year I was paid by 6. So why the decrease in dividend income? For one, there was a big dividend cut from GE. They cut their dividend by 50%. My position with them was small anyway so I decided to hold on the stock anyway to wait and see what happens. I know it will probably be years before the stock rebounds, but at least I can DRIP dividends at these very low costs.
I also had one sell last year that paid out in January. My sell of HASI, a REIT with a higher yield paid me $20 last January. That is where the main decrease came from. I don’t really consider that a decrease though. The stock was volatile and I questioned the safety of the dividend and the company long term. For the past few years, they have traditionally increased their dividend every December, but have not done so this year. Only time will tell, but so far I am happy to have gotten out when I did. I was able to reinvest that capital into more high quality stocks. This is why I consider it not a decrease, because the dividend payment from this capital just moved to different months.
Some of the new buys I made over the course of the year paid out in January. Nice to see payments this month from CAH, O, and LTC. Both O and LTC pay dividends monthly, so they should help add a bit of growth every month going forward even though my positions in them are still fairly small.
I am not worried seeing a decrease to start off the year. The moves I made in my portfolio over the past year have increased its diversification, safety, and hopefully overall long term growth. I am looking forward to seeing my dividend income after the first quarter to get a better representation if the portfolio optimization is working. Hope you are all off to a great start this 2018! Best of luck going forward!
How did your portfolio perform in January? Did you start the year off with growth or a decrease? Your comments are always welcome below.