“Since I look at dividends as a paycheck, how many of you can claim a back-to-back double-digit annual increase in your pay?” — Howard Silverblatt
I’ve never met Howard Silverblatt in person, but we’re kindred spirits when it comes to our view of dividends. As a senior index analyst for S&P Dow Jones Indices, Silverblatt is something of a dividend guru for them. Back-to-Back, double-digit annual increases is precisely what I invest for! I know how to find those issues every day of the week… and, I do!!! Between double-digit annual dividend increases, and accumulating shares at low-risk market entry opportunities, I’m purposely growing our portfolio dividend income at a rate that causes our dividend income to double every few years! What is not to like about that?!?!? Our monthly portfolio statements are about to come due, and I’ll be updating our Excel file records once again. I love doing that!
When I’m done, I get to tell my wife just what has happened, and how we are doing. It’s all always good! Traders don’t get to say that. Investors for growth can’t say that either. But, we investors for portfolio dividend income from safe-dividend growers do. We get to tell of it every single month… quarter-over-quarter, and year-over-year!
When our June statements came out in July, we had experienced a 36.3% portfolio dividend income increase over the same month from the year before. Then, when our July statements became available in August… again, by the very same calculations, our actual annual portfolio dividend income had grown by 29% over July of 2013, and was up 21% just since this past January. Now that our August statements have been issued, I enter the dividend payout data into our Excel records, and I see that we experienced an actual portfolio dividend income increase of 31.3% over August of last year. We’re right on track!
Whereas, my first purchases in most of these safe-dividend growers was while their dividend yield was under 2%; these same companies have increased their dividend payout to me at annual double-digit rates, which has resulted in a near doubling of our yield already, to a portfolio dividend yield of 2.76%. That’s not very much, you might be thinking… and perhaps it isn’t, but my yield from these current shares is doubling to me at a rate that should conservatively bring to me a better than 5% yield within the next 6 years… and should continue to grow their yield to me, non-stop, for all the rest of my life! That sure beats any annual “cola” every day of the year!!!
Here’s to your investing success!
Harold F Crowell