February 2022 Dividend Journey Update

Photo from Calendar Dream

In February, the dividend portfolio made steady progress with consistent share accumulation, dividend growth, and reinvestments. Like the previous updates, I will share the monthly dividend income summary to show how I am growing the dividend income over time. Let’s take a look at the February 2022 dividend portfolio update!

February Dividend Income

In February, the dividend portfolio received a total income of $34.46. Last month’s total was a noticeable increase from November 2021’s income total of $32.90, due to the Dividend Reinvestment Plan (DRIP) and AbbVie’s recent 8.5% raise. It is encouraging that February’s dividend income increased by 4.74% from November’s total despite me not buying shares of positions that pay dividends in February, May, August, and November. With DRIP, it will be intriguing to see the portfolio’s dividend income total in May 2022.

Of February’s total dividend income, AT&T’s dividend paycheck made up a noteworthy 50.93% allocation. AbbVie was the second-largest dividend payment, making up 26.06% of the month’s total. Realty Income’s monthly dividend paycheck made up approximately 23.01% of February’s total. With AT&T cutting its dividend following the merger and spin-off with Warner Bros Discovery, expect the May 2022 dividend total to be composed of slightly different allocations from the AT&T, AbbVie, and Realty Income paychecks.

February Purchases

Just like at the end of January, I accumulated 4 more shares of Pfizer in February. I have been steadily building up this position over the last 12 months and getting close to holding 100 shares of Pfizer. I currently receive $103.92 in dividends from Pfizer annually, with the potential to increase Pfizer’s annual dividend payments over the next few months due to the purchase of Pfizer shares and the recently announced dividend raise of 2.6%. The objective of holding at least 100 PFE shares is to eventually place covered calls on the Pfizer position to turbocharge the passive income stream.

Monthly Dividend Payment Track Record & Trends

With a total dividend income of $34.46 last month, February was a 4.74% increase since November’s income total. This increase from November’s total is a result of dividend growth and reinvestment. This is the second-highest dividend income total the portfolio received overall, well below December’s total of $47.29. The dividend portfolio received greater than $30 in dividends in February, making it the sixth month in the last seven to with a monthly total above the $30 mark.

Compared to February 2021, February 2022’s total marks a year-over-year increase of a noteworthy 9.50%. Overall, the chart above depicts the gradual upward trend in dividend totals in almost the past two years. The upward trajectory has been the most noticeable particularly in each quarter’s third month (March, June, September, and December) due to consistent purchases of Pfizer shares each month. Hence, monthly income totals exceeding $40 will gradually become more frequent going forward.

Projected Annual Dividend Income (PADI)

Owing to share purchases, DRIP, and a dividend raise, the PADI surged close to the $450 mark at $449.01. Back in December, I outlined plans to push the portfolio’s PADI close to the $500 mark by the end of 2022. I appear to be making significant strides toward the milestone as the portfolio is only $50.99 away from the end-of-year PADI goal only two months into 2022. As long as I continue making use of the Value Dividend Growth Investing template and accumulating shares of dividend stocks consistently, I should be able to achieve this goal as I accomplished the 2021 goal with ease.

Disclaimer: I am NOT a financial advisor! These articles are for educational and inspirational purposes only. In this article, I am only sharing my opinion, with profits or losses on investments not guaranteed! Please do your research, with due diligence!

Disclosure: I am long MSFT, KO, T, MPW, O, ABBV, CSCO, PFE, and MRK.