January is a month full of bond dividends! The title makes of this post made me think of a bad financial Terminator movie. “The bond dividends are too powerful! WE MUST STOP THEM!”
December, my biggest month of the year is long gone and it’s time to start the new year. These early months are months carried entirely by bond dividends as the title makes it seem.
Generally, January is one of my lowest months for dividends. I don’t own a ton of individual stocks and none that pay in January. That means it’s up to my bonds to carry the day. I have recently been buying more of these guys due to the strong stock market returns. Bonds have fallen behind my target asset allocation so they’ve been on my buy list. That means these off months can start to pick up a bit as we go through the year.
I’ve been on a roll with 5 straight months of $100 dividend months but that’s likely set to end here. I’m an ETF/mutual fund investor which means most of my dividends fall in the quarter ending months. That leaves month like January to lag behind.
December ended my year on a high note with nearly $3k in dividends and we’re going to see a huge drop off this month. My dividend employee Steve worked hard in December and now takes a well deserved break before the next big month in March.
Last January came in at a total of $55.56 so that’s the starting point for this month. I’m expecting it to come in quite a bit higher due to the recent bond purchases I’ve been making. Let’s take a look where we’re sitting in January. Do note the new month specific graph below that makes it easier to compare the monthly results. The old graph that showed the entire year really muffled these off months due to how high March, June, September and December were.