Time for another dividend income update! For December, I received 8 dividend paychecks and we’re going to look at those payers and how my portfolio is performing.
We’re also going to round up all the dividends I’ve received for the entire year of 2021 and compare it to 2020’s results. Then I’m going to share what my plans are for this dividend portfolio in 2022.
Buys & Sells for December
BUY 🔼
| Date | Ticker Symbol | # of Shares | Market Price | Cost |
|---|---|---|---|---|
| 12/20/2021 | ABR | 4 | $16.75 | $67 |
| 12/20/2021 | STOR | 2 | $33.35 | $66.70 |
| | TOTAL SHARES: | 6 | TOTAL COST: | $133.70 |
SELL 🔽
| Date | Ticker Symbol | # of Shares | Market Price | Cost |
|---|---|---|---|---|
| | TOTAL SHARES: | TOTAL COST: |
December 2021 Dividends
Here are the 8 paychecks I got in December 2021!
| Company | Ticker Symbol | Dividend Amount |
|---|---|---|
| PIMCO Dynamic Credit and Mortgage Income Fund | PCI | $3.48 |
| Schwab US REIT ETF | SCHH | $1.01 |
| PIMCO Dynamic Credit and Mortgage Income Fund | PCI | $3.48 |
| Main Street Capital | MAIN | $1.47 |
| Realty Income | O | $2.71 |
| Stag Industrial | STAG | $4.35 |
| Main Street Capital | MAIN | $0.70 |
| Gladstone Commercial Corporation | GOOD | $5.89 |
| TOTAL: | $23.09 |
Monthly & Quarterly Comparisons
PREVIOUS QUARTER
September Dividends: $18.25
December Dividends: $23.09
RESULTS: 🔼 Up by $4.84
| Ticker Symbol | September Dividends | December Dividends | Change |
|---|---|---|---|
| PCI | $2.61 | $3.48 | +$0.87 |
| SCHH | $0.45 | $1.01 | +$0.56 |
| PCI | $0 | $3.48 | SPECIAL DIVIDEND |
| MAIN | $0.89 | $1.47 | +$0.65 |
| O | $2.59 | $2.71 | +$0.12 |
| STAG | $4.35 | $4.35 | no change |
| MAIN | $0 | $0.70 | SPECIAL DIVIDEND |
| GOOD | $5.63 | $5.89 | +$0.26 |
PREVIOUS MONTH
November Dividends: $52.61
December Dividends: $23.09
RESULTS: 🔽 Down by $29.52
| Ticker Symbol | November Dividends | December Dividends | Change |
|---|---|---|---|
| PCI | $3.48 | $3.48 | no change |
| SCHH | – | $1.01 | no dividends |
| PCI | – | $3.48 | SPECIAL DIVIDEND |
| MAIN | $1.47 | $1.47 | no change |
| O | $2.60 | $2.71 | +$0.11 |
| STAG | $4.35 | $4.35 | no change |
| MAIN | – | $0.70 | SPECIAL DIVIDEND |
| GOOD | – | $5.89 | no change |
For 2020, I earned $350.37 in dividends. That means that my dividends for 2021 saw a growth of $82.41, or 23.52%! More to come this year!
Plans for 2022
I mentioned in a previous article that I will be increasing specific sectors in my dividend portfolio.
But primarily, I’m planning to increase my REIT holdings for a couple of reasons.
- The easiest way to dip into real estate. One reason that investors go for REITs is because of the exposure to real estate you get without the hassles of owning real estate. While there can also be arguments against this, it makes sense for my situation since I dont have the capital or knowledge yet to become a homeowner or a landlord.
- Monthly dividends are common among REITs. The most powerful thing about making money work for you is called compounding. This just basically means that the dividends your portfolio earns is reinvested back into it that the dividends you get the next time is bigger. Monthly dividends are preferred because you can use the money a lot sooner compared to quarterly dividends. If I’m able to receive my dividends sooner, I can reinvest them back sooner and grow my portfolio relatively faster.
- It’s a hedge against inflation. I’ve recently learned that REIT stocks usually perform better when inflation is on the rise. This is because when prices increase, rent increases too. And that rent income means consistent and maybe even bigger dividend contributions to shareholders. But this can also be offset, from what I learned, by rising interest rates. While this is just one factor for it, if interest rates increase, REITs underperform because money is hard to borrow and could eat into profits.
2022 might also be the year I look more into other dividend stocks in lined with my goal to add some diversification to my portfolio.
Even though I’m planning to add more REITs, which already weighs a lot in my portfolio, adding some Financials, Communications and Consumer Staples stocks is a good idea.
If REITs become too expensive for me, I can shift on these sectors and increase my holdings in those areas.
Anyway, I’m aiming for a portfolio value of $10,000 by the end of 2022. And I believe that’s a good amount to strive for this year.