For those that traditionally listen to the saying, “Sell in May and go away”, it may have backfired this year. Aside from a slight pull back in mid-May, the market continues to hit new highs almost every day. It seems with every new high there is a new bear. Almost every day I see people hesitant to put money into the market as it is overvalued. While it is true that finding good value is harder now, it certainly is not impossible.
Welcome to my May dividend update. It has been a long time since I have done one of these but I plan on doing this monthly as I gear my blog more towards a dividend blog rather than general personal finance. Usually, the second month of each quarter is my slowest for the year. However, I was able to double my income from the previous quarter as I continue marching on towards my 2017 goals.
May was hands down the most expensive month I have had since I began working. Due to the purchase of a vacation (hotel, flights, Groupon activities) and the purchase of a new suit for work, it turned out to be a very expensive month. However, like all other months, I make an effort invest a minimum of $2,000 a month into the market. $1,200 of this goes into my 401(k) and HSA funds while the remainder goes towards my Roth IRA and taxable accounts. Here were two purchases I made in May:
- I purchased 6 shares of the beloved O, Realty Income, at the beginning of May at a price of $55.26. This purchase will add $15.12 to my forward dividend income.
- I purchased 31 shares of SKT, Tanger Factory Outlet Centers, at a price of $25.93. This purchase added $42.16 to my forward dividend income. It is important to note that this was made in my HSA to due to the tax advantages it has for REITs.
As you can see, I added a grand total of $57.28 in dividend income during May, before my 401(k) dividends are added in. I believe right now many REITs, especially REITs with retail exposure, have been oversold and represent bargain purchase prices with high yields.
Now for what we have all been waiting for, my monthly dividend income. In February 2017 I received $5.78 in dividends. Not even enough to cover my Netflix subscription… Thankfully in May, I was able to almost double this total with $11.06 in dividends largely in part to my purchase of PAYX, Paychex Inc. This represents a 91.3% increase, WOW! See below for a comparison of the two months:
|Ticker||February 2017||May 2017|
|JPM High Yield (R)||0||.38|
Two things to note, Acorns is what I consider a savings account that pays better interest. If you are not familiar with Acorns, they basically invest your spare change for you. Example, if you spend $4.75 on an item, they will round the purchase to $5 and invest the 25 cents for you. While it may seem small, believe me, it adds up. Here is a referral link where we both get $5! Secondly, accounts with “R” mean retirement account; 401k and HSA.
Overall I was very happy with May. I am hoping by the end of the year I will be getting $25 for these 2nd month quarters. Stay tuned for June’s report to see if I can finally break into a triple digit month!
How did May treat you? Were there any surprises? What are your thoughts on value right now?