February 2014 Dividends

Only two of my stocks, Apple (AAPL) and Kinder Morgan (KMI) pay their dividend in February.

AAPL recently paid $88.97 and KMI paid $55.73, bringing the total for the month of February to $144.70. This is a huge increase from the payouts of $47.89, $44.67, and $0 in 2013, 2012, and 2011, respectively. (The dividends in 2013 and 2012 were from Bristol-Myers Squibb (BMY), which I no longer own.)

AAPL: $88.97 bought 0.1637 shares at $543.538
KMI: $55.73 bought 1.6571 shares at $33.6315

Since my dividend payouts are still relatively small in the grand scheme of things, I have been allowing the dividends to be automatically reinvested. This allows me to accumulate additional shares of the same stock without having to pay commissions, allowing me to “dollar-cost average” to buy more shares when the share price is down.

With the dividends above, I purchased an additional 0.1637 shares of AAPL and 1.6571 shares of KMI. I will continue to reinvest the dividends until the total amount received each month is enough to purchase an additional approximately $2000 over a period of a few months. That means I will have to wait until my annual monthly dividends are in the $500-1000 range. That means (at a yield of 3%), my portfolio will have to be around a minimum of $200-400,000. While I’m not quite there yet, in a few years I will be able to be.

Full disclosure: Long AAPL, KMI

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