Just like that half of the year is done! June was a terrific month for me with both my savings and dividends. Let’s jump right into my June savings rate, stock purchases, and dividends received.
After a very expensive month in May, purchased a new suit as well as paid for a vacation, I was back on track in June. In fact, I was well above my 55% goal. This month I managed to save a whopping 61% of my salary!
There were two reasons for this, I lowered my food expenses as well as my entertainment expenses. Despite spending a fair amount of money in Miami this month during my vacation I came in $250 under budget despite doing everything I wanted. With such a high savings rate, I was able to put almost $2,400 to work in the market.
June was a terrible month for most of the retail sector. Thanks to Amazon and their recent purchase of Whole Foods a large portion of the grocery stocks as well as REITs with these tenants had major drops in value. As I am trying to max out my ROTH IRA for the year as well as use some of my HSA funds, I took the opportunity to add a couple of REITs due to the tax advantages they have.
- I purchased 21 shares of DEA, a government REIT, in my HSA. The best part was I got in right before the ex-dividend date so I recently received my first dividend check of $5.25 from them! This purchase added $21 of dividend income annually.
- My second purchase was one that I was eyeing for a while. Once again, another REIT called KIM. I purchased 52 shares in my ROTH IRA. They have a wide array of tenants and will help diversify my REIT portfolio. This purchase added $56.16 in forward income.
With over $3,000 left for my ROTH IRA for the year, I will continue looking at REITs and Canadian stocks due to the tax synergies these companies get in tax-deferred accounts.
June Dividend Income
Before the month even began I knew that this was going to be huge for my portfolio. Since I began working I have regularly pumped money into the market. June was my first triple digit income month and I could not be more pumped! I am finally out of the double digits and am on my way to the four-digit club. However, that is a long way from now. Here were all the stocks I received dividends from this month:
Any ticker with an R next to it means retirement account. These range from 401(k), ROTH IRA, and my HSA. All stocks in my retirement accounts use a DRIP and select taxable stocks.
Compared to March 2017, I increased my dividend income by almost 20%! If we were going all the way back to June 2016, when I received $28.93 in dividends, this was a 255% increase. Not bad for one year’s work!
The dividends received this month would have paid for 8% of my necessary expenses. With the upcoming bank dividend increases – BAC is raising their dividend 60%! – I expect September to be even larger. However, I am most interest in December where my 401k funds will pay dividends and capital distributions. Considering 50% of my investments are in my 401k I am expecting to be close to or over $200.
How was the month of June for you? Did you have any new purchases that you made?