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The end of 2022 is upon us. Before we look too far ahead, as always, we need to summarize our results. Bert and his wife saw some strong dividend income growth in November 2022. This article will provide the details. Here is Bert’s November dividend income summary!
Why I Invest in Dividend Stocks
I invest in dividend stocks to grow my passive income. One day, my dividend income will be large enough to cover my monthly expenses and allow us to retire early. That is why we are relentlessly searching for undervalued dividend stocks to buy. To put our hard earned cash to work.
We save a high percentage of our income each month, to help fuel our dividend stock portfolio. Having a high savings rate is a key pillar of our strategy and helps fuel the fire and push the snowball further downhill. While we are waiting to invest our money in the market, it is earning a high interest rate in accounts. The two primary savings accounts I use are:
- SoFi – 3.5% APY on all savings accounts (2.5% on your checking account). The race for deposits are INTENSE! Banks and credit unions are offering great savings rates.
- Yotta – 1%–2% APY, on average. They just updated their product as well. Now, instead of weekly drawings, they are offering daily cash drawings!
How do we find undervalued dividend stocks to buy? That’s easy. We use our dividend stock screener with every stock purchase! This simple, 3-step stock screener is designed to identify undervalued stocks with a strong payout ratio that have a history of increasing their dividend. Fundamental dividend growth investing at its finest.
Building a large dividend income stream takes time, consistency, hard work, saving, and most importantly, investing. I have been investing in dividend growth stocks since 2012. Saving a high percentage of my dividend income allows me to invest as much as possible, so we can retire as soon as possible.
Slowly, but steadily, my income has grown. Brick by brick. DRIP by DRIP. It is really exciting to see the growth and larger dividend checks trickle into my brokerage account.
Each month, we share our dividend income summaries to highlight our growth and progress. It is a fun and helpful exercise that holds us accountable. Further, it helps you, our followers, see the stocks we are purchasing.
Bert’s November Dividend Income Summary
We received $855.31 in November dividend income! This was an 11.93% increase compared to November 2021. It was very exciting to post such a large year-over-year increase. We’re cruising on our way to four digits in an off month, one investment purchase at a time!
However, the devil is in the details. The following chart will show each individual dividend payment we received in October 2022:
Here are a few observations from the month!
Observation #1: Loving the Large Dividends Payments
The title of this observation may be slightly misleading. On our YouTube Channel, I have lately been discussing how I want to build up positions in my portfolio versus buying new ones. In previous months, I have received several small dividends from companies ($10 or less per month). One of my goals is to increase the dividend payment received for a stock or consider selling that position, and then moving the cash into a different stock to increase the dividend income received from that company.
In November, the dividend payments received were relatively large. Only 3 dividend payments were below $10 for the month. Further, all the other dividend payments received were over $15! An example I am proud of this year is Texas Instruments (TXN). This was a new position in 2022. The goal was to build a strong position. Now, we receive at least $18.60 each quarter and are cruising towards $25 per quarter. That’s not a huge dividend, but not an insignificant one either. I’ll continue to focus on this goal in 2023.
Observation #2: We Love Banks
We love banks. That shouldn’t surprise anyone on this call. That’s our background and favorite sector to cover. In November, bank stocks really rewarded us for our love of the sector. 4 bank stocks (Citizens & Northern Corporation (CZNC), Canadian Imperial Bank of Commerce (CM), Norwood Financial Corp. (NWFL), and Provident Financial Services (PFS)) paid us a massive amount of dividend income. In total, bank stocks accounted for $199.69 of dividend income. That represents 23% of our monthly dividend income. Told you we love the banking sector.
Summary – November Dividend Income
Another month down in the books. Once again, I’m all smiles as we barrel towards 2023. The percent increase may not have seemed large in November, 11%. However, the dollar impact is starting to feel real. Building a large dividend income stream is not a fast journey. We’ve been doing it for a decade. It is just great to see the impact of your hard work. Honestly, if anything, it just continues to motivate me to keep on pushing towards financial freedom. Let’s challenge and push ourselves even harder next year!
How did you perform in November? Did you set a record? What sector paid you the largest dividend percentage last month? Do you love banks as much as we do.
Bert
Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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