May Dividend Update

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 Purchases

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:

  1. 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.
  2. 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.

May Dividends

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
CF 3.00 3.00
CLDT 0.22 0.22
O 0.63 0.63
STAG 1.87 1.87
PAYX 0.00 4.60
Acorns .06 .36
JPM High Yield (R) 0 .38
Total 5.78 11.06

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?

12 comments… add one
  • Mrs. Picky Pincher Jun 2, 2017, 9:15 am

    Great job with those May money goals! I started investing in Acorns this month as part of an experiment. You won’t see cuh-razy gains, but it’s a nice way to slowly build extra wealth over time.

    • Stefan Sharpe Jun 5, 2017, 10:13 pm

      Thanks! Acorns is pretty nifty I started using it in college and have had a high of $450 which I recently took out to pay for my vacation. Not a bad use ofmy bank account haha. Let me know how you like it!

  • wealth from thirty Jun 3, 2017, 2:28 am

    Looking forward to seeing your regular dividend updates TMB. Down under the old adage about May was cause for all kind of speculation. At the start of the month the media talked as if the market was fending May off and by the end of it they had fully endorsed the statement. (The ASX200 were down 3.4% for the month). Who knows right. The large banks in Aus had their worst May in 44 years. To me, this just shows how fickle markets [people] can be. Hope the vacation was a good one Stefan and think it’s very true good value is getting harder to find.

    • Stefan Sharpe Jun 5, 2017, 10:14 pm

      Wow that is the complete opposite of the American markets but it seems heavily media driven (go figure). Maybe set you up for some nice deals?

      • wealth from thirty Jun 8, 2017, 12:17 am

        There are actually pockets of nice deals and you’re spot on, the volatility is encouraging for a long term investor. I think in the short term the Australian media has quite an impact (News Corp owns about 60% of circulating papers, Fairfax about 26% so it’s very concentrated).

  • Dividend Diplomats Jun 5, 2017, 9:36 am

    Stef –

    Nice job man! Are you reinvesting your dividends? Curious, I should know but want to ask. Your June will be big – as I assume your 401k/HSA will have a more “quarter end” payout structure. Nice growth overall and continue to plow capital into the market where you see fit with the criteria you have!

    -Lanny

    • Stefan Sharpe Jun 5, 2017, 10:16 pm

      Thanks Lanny! Yes my end of year should have quite the amount of dividends as the majority of my funds payout at year end. Just the nature of how my paycheck is split up for now but as I move up it will switch to a lot of stocks in my taxable account.

      I reinvest all dividends in my ROTH IRA accounts and HSA account which is currently 50% of my portfolio. Most of my larger purchases are in these accounts as you would imagine.

  • Wallet Squirrel Jun 5, 2017, 7:26 pm

    Nice Stefan!

    Yea with this market right now, I’m also hesitant of dropping any cash into it. I’ve been mainly been Dollar Cost Averaging into existing stocks. This last month, I also bought up a couple more shares of Realty Income (O) – Awesome Buy while it’s down. Noticed you did too!

    Keep rocking it, glad we had the same idea,
    Andrew

    • Stefan Sharpe Jun 5, 2017, 10:17 pm

      Thanks Andrew! O really is a nice buy. It may go even lower but we will see where this road takes us. I have no problem buying a lot of REITs in my IRAs and leave the other investments in a taxable account.

  • Dividends Down Under Jun 6, 2017, 7:35 pm

    Nice job buddy, good to see a nice increase and some purchases! Good luck for the rest of the year.

    Mr DDU

  • Mr. Robot Jun 19, 2017, 3:02 am

    Nice buys! I’ve been looking at SKT myself but still purchased O last month.

    Also great to see you pushing to invest $2000 EACH month. Chapeau!

  • Dividend Portfolio Jun 24, 2017, 3:33 pm

    Nice job on that increase. I made $2.85 in May, but it represented a big increase from when I started tracking my dividend income.

    Thanks for reminding me about Acorns. I tried out Acorns about a year ago and got rid of them because I didn’t think I could import the data into Turbo Tax. Well, I can and so I’ll eventually start using Acorns again. Between Qapital and Digit, I’m not sure I can keep up.

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