2022 keeps flying. Another month is on the books. The stock market had a great August as the impact of inflation, interest rates, and a possible recession began to trickle through the gains. Still, despite the noise, the dividend checks continued to flow. That That’s why we love investing in dividends. In this article I will summarize the dividend income received in August. Let’s take a look at Bert’s August Dividend Income Report!
Why do I invest in dividend stocks?
I invest in dividend stocks to increase my passive income. One day, my dividend income will be large enough to cover my monthly expenses and allow us to retire early. That’s why we tirelessly search for undervalued dividend stocks to buy. To put our hard earned money to work.
We save a high percentage of our income each month, to help fuel our dividend stock portfolio. Having a high savings rate is a key pillar of our strategy and helps fuel the fire and push the snowball downhill. While we are waiting to invest our money in the market, it is earning a high rate of interest on the accounts. The two main savings accounts I use are:
- SoFi: 2.0% APY on all checking and savings accounts. Last month, the APY was 1.8%. SoFi wastes no time and raises your interest rate fast!
- Yotta – 1% – 2% APY, on average, with your weekly cash prizes.
How do we find undervalued dividend stocks to buy? That is easy. We use our dividend stock filter with each purchase of shares! This simple 3-step stock screener is designed to identify undervalued stocks with a strong payout rate that have a history of increasing their dividends. Fundamental dividend growth investing at its finest.
Building a great stream of dividend income takes time, consistency, hard work, savings, and most importantly, investment. I have been investing in dividend growth stocks since 2012. Saving a high percentage of my dividend income allows me to invest as much as possible, so we can retire as soon as possible.
Slow but steady my income has grown. Brick by brick. DRIP by DRIP. It is really exciting to see the growth and larger dividend checks in my brokerage account.
Each month, we share our dividend income summaries to highlight our growth and progress. It is a fun and useful exercise that makes us accountable. Also, it helps you, our followers, to see the stock we are buying.
Bert August Dividend Income Summary
We received $842.78 in August dividend income! this was a 3.54% increase compared to August 2021. The increase may not seem significant, but there has been a lot of noise in the last 12 months. I am excited to discuss the individual dividends received this month and start looking ahead to the next quarter. Hey, at least this month it was up compared to July (which saw a decline in dividend income due to T. Rowe Price (TROW) crazy special dividend in July 2021).
August 2022 Individual Stock Dividend Payments
I mentioned in the last section that there was a lot of noise. Now, let’s take a look at the individual dividend payments received during the month to see what caused some of this perceived noise.
First, let’s talk about the elephant in the room. We have a new maximum dividend payer in August 2022 compared to August 2021. Last August, I received $100 from AT&T (T) and my wife received $89 for the troubled wireless and telecommunications giant. This August, I received $58 from AT&T while my wife received $51. In total, our AT&T dividend payment decreased by $80. T remains one of the most frustrating stocks for dividend investors.
Second, let’s focus on the positive changes compared to last year. My wife started her position at AbbVie (ABBV) in the last 12 months. That position grew and added $27.61 in new dividend income compared to the prior period. In addition, the banking sector showed its muscles. Citigroup (C) increased its payment to us by $8 due to additional purchases of shares and Provident Financial (PFS) added another $6. There was also new dividend from Starbucks (SBUX), adding $9 of new dividend income.
Lastly, our dividend income was up compared to last year due to good dividend reinvestment and old-fashioned dividend increases. The true basics. It’s like block and takedown! For example, my Procter & Gamble (PG) payout increased to $76.13 from $70.81 of DRIP and a dividend increase over the last 12 months.
Summary – August Dividend Income Summary
Another month and another round of all smiles. Despite a low dividend growth rate, I am excited that our dividend income is approaching $1,000 in a “discount month.” Showing an increase was not easy due to AT&T’s dividend cut. However, this is why it is important to continue investing and building your dividend income. That way, when something bad happens, you’re diversified to not only take the hit, but come out on top.
I am particularly excited as I have started to build my position at Texas Instruments (TXN). The company pays its dividend in the second month of the quarter. So, hopefully we’ll get a nice, juicy dividend from tech stocks in our November dividend income report!
As always, let’s keep going and keep marching towards financial freedom. Let’s keep saving every dollar we can and investing as much as possible, so we can continue to grow our dividend income!
Did you have a good month of August? Did you set a personal record? Which new stocks paid you dividends for the first time in August 2022?
Publisher’s note: The bullet points in this article were chosen by the editors of Seeking Alpha.