Dividend Income Update December 2020

The start of every month is exciting for all dividend income investors as we look back at the previous month and see how much passive dividend income our portfolios generated. December was exciting as ever as my year over year numbers continue to highlight the trifecta magic of dividend investing which includes, adding fresh capital, dividend raises and basic compounding to create an ever-increasing passive income stream. Even if I stopped adding fresh capital today and every dividend stock I owned kept all distributions flat, without a single raise, my passive income stream would continue to grow.

With that being said, let’s take a look back at my December 2020 dividend income.

Dividend income from my taxable account totaled $1,553.40 down from $1,998.38 a decrease of -22.3% from December of last year.

Dividend income from my ROTH account totaled $137.91 down from $180.80 a decrease of -23.7% from this time last year.

Dividend income from my IRA account totaled $13.45 up from $5.72 from this time last year, an increase of 135.2%.

Grand total for the month of December: $1,704.76 a decrease of -22.0% from December 2019.

Grand total for 2020 dividends: $16,528.99 an increase of 18.4% from 2019. You just have to love the very real results of dividend growth investing even if we experience some harsh dividend cuts and suspension.

Brokerage Account

Year to date dividends: $12,608.80

ROTH Account

Year to date dividends: $2,630.90

IRA Account

Year to date dividends: $985.48

I have to stress that dividend compounding can work over time and can create an ever-increasing passive income stream despite holding dividend cutters and eliminators. While 2019 saw my portfolio receive many dividend raises, stocks like GE, ADNT, APY, KHC and TEVA either reduced or eliminated their payments during the last couple of years. We all know that diversification is the key to mitigate these circumstances that every long term dividend investor will inevitably face.

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Disclosure: Long all above.

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