Last month is the perfect example of the impact of dividend growth on my portfolio. The three keys to dividend growth investing are dividend growth, reinvesting the dividends you earn, and regularly adding cash to invest in these stock.
This growth is no joke. In simple terms, this is a pay raise for just holding on to these shares. That can't be beat. These increases are exactly why I invest in these companies.
If they did not regularly increase the dividend, future payments would only fall behind costs as inflation makes everything more expensive., even in normal economic times... If there were no increases, we'd have to eventually sell shares to survive. I fully plan on leaving these for my kid someday.
So here is the perfect example. February brought me 18 dividend increases that added $227.41 in passive income. Passive f****n income baby! Whoot whoot.
I did have 2 decreases. Unilever (UL) dropped by 2.2%, but is not surprising being that they fluctuate each quarter and the overall pattern for them points upward.
The other one PPL Corp (PPL) cut their div by 51%. That is not acceptable to me and I replaced it with Leggett And Platt (LEG) - which actually has a higher dividend anyway.
Here's the breakdown:
As you can tell, OMF is the big winner - a 35%.7% increase. Using my cost basis from purchasing this company, I now earn a 8.81% yield, even though the current yield is only a measly 7.3%... lol. It's why you hang on to these for the long term. It's the same with Steel Dynamics (STLD). One of these days, I will be holding on to a company that will pay me annually what I spent on buying them in the first place. At that point, life is golden.
Let's see how March treats us!
Remember, if an idiot like myself can do this, you can do it too.