February isn’t a very exciting month up here. It’s cold outside and the dividends seem to be frozen too. I only own two securities that pay out dividends in February, my bond fund which pays monthly and Apple which is a small holding.
I made a few small moves last month that should change this a bit going forward. I doubled my Apple position when it was down in the low 90s as the valuation was appealing. The purchases was post the ex-dividend date for February so we won’t see that uptick in dividends until the next payout in May. I also moved some of my bond fund into the REIT fund during the downturn as well to help boost my REIT asset shortfall and reduce my Bond exposure which was above and still probably is above my target. This will help boost my overall yield but lower my month to month dividend payouts as the REIT fund pays out quarterly which is different than the monthly bond payouts.
In the past few weeks – we’ve seen a slight recovery in the markets and the sour mood we experienced has seemingly evaporated. It’s somewhat unfortunate that the downturn was so short as I was enjoying picking up additional shares with my dollars when the prices were lower. As long term investors we have to remember that a few bad months here and there are a good thing in the long run. I’m still far from a point where the income I generate monthly or yearly allows me to buy a significant amount of securities but even one extra share per month due to dividends in these slow dividend months is helpful in the long term.
With that said – let’s take a look at February – the lowest month of the year so far!
Not every month is going to be December guys and yet again we have a pretty small month in February. My portfolio employee Steve didn’t do a lot of work for me this month either. Steve must have tired himself out in December after earning $19/hr because he only brought in .66/hr in January and now that’s down to .47/hr in February.
I saw $110.30 in income, split evenly between my taxable and tax-advantaged accounts in January and that was reduced in February to $79.11. There was a slight reduction in tax-advantaged income due to the Bond to REIT exchange I made in February reducing income there from $55.36 to $52.54. My taxable income was minute as I only have a few shares of income producing securities that pay in February.
Still, $79 is better than 0 and the money gets reinvested right back into Steve’s business. The $79 will boost my annual portfolio’s income by ~$2 or boost my monthly income by 16 cents. Certainly not anything to write home about but every little bit counts. Steve’s business is very seasonal as we saw by the huge income in December and the massive drop off in the months around it so I expect to see a boost in the upcoming month as all his ETF and mutual fund customers start paying off.
The long term goal is to see this income creep up and while it’s clear that I’m starting off at lower numbers – hopefully in a year or two we’ll start seeing steady increases as the money that I do make this year is reinvested into the portfolio and additional funds flow in as well. I’m certainly not concentrating on dividend income in my portfolio but it”ll still be nice to see it grow.
That’s it for February. See you all in another month as we keep track of Steve’s progress in getting his business to grow. I’m pretty sure March will see a boost in his monthly income. It won’t be anywhere close to December but it should still be a decent month.
February Total : $78.96
2016 Total : $189.26
Portfolio monthly hourly wage : 0.47/hr
Portfolio 2016 hourly wage : 0.57/hr