I don’t pay particular attention to my dividend income since it is so low, but I was inspired the other week when reviewing a client’s file. The individual, a police officer, built a very impressive balance sheet with his wife, an administrative assistant, but I was shocked when I saw the tax return. This couple had almost no discernible non-qualified investment income. Maybe they are super efficient and everything that provides income is held in qualified accounts, but either way it gave me a little inspiration to actually look at my dividend portfolio for a reason other to purchase my monthly lot or two.
An Example of a Dividend Stream Starting to Trickle After Growing
This is one of the smaller of my 20 or so holdings:
It looks like in December of 2011 and January of 2012 I thought that BDX was undervalued. Back then I was only updating my dividend watch lists every 6 or 8 weeks and it was way more important to horde cash then it was to buy stocks. Little did January 2012 Evan know what was ahead of him with the move that is documented on this site, but I digress.
As it can be see, I bought 2 separate lots of 4 shares. Those shares purchased what seems like a life time ago, have provided me with a growing income stream of $3.60, $3.62, $4.01, $4.03 and $4.05. This amount equal approximately 3.2% of my original principal outlay. That number is only likely to increase exponentially if BDX follows the past 40 years and increases its dividends year in and year out regardless of recession or correction.
Makes me wonder if 2022 Evan will still be reaping the dividends of making that tiny investment in 2012?
Not really the point today, but those shares have also increased 36%!