Friday, September 21, 2012

End of Summer

Today is the last full day of summer, according to the solstice-to-equinox definition.  Hours spent in darkness will start to outnumber daylight hours very soon (at least here in NH).

Continuing the dividend announcement soap opera, yesterday MCD declared a dividend increase.   That makes two stocks which have announced increases and one which announced a decrease this week.

We also received our Q3 dividend payment for WM.  Based on our current holdings, we won't receive another dividend for more than a month.  More than half of our positions pay dividends on the popular March/June/Sept/Dec schedule, which means September was a good income month for us.  (Oddly enough, however, the higher-yielding REITs distribute their dividends during the other months, so we'll receive more income from fewer holdings in Oct & Nov than we will in December).  At this stage in my life, it doesn't matter when the dividends are paid, but for an investor who was counting on that income stream, I could see a case for shifting portfolio allocation between stocks so that it would be fairly evenly distributed throughout the year.

3 comments:

  1. I welcome any increase especially those that outpace inflation such as the recent MCD increase.

    I'm of the opinion that payment schedules shouldn't matter and don't need to be even. I'd rather invest in the best companies available at the most attractive valuations. If that means certain months will pay more than others, so be it. I track my progress quarter to quarter which smoothes over uneveness of the monthly totals. In retirement I plan to spend from a checking account which will act as a buffer and be replenished with dividends, distributions, and interest.

    Take care,

    CI

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    Replies
    1. Good point. I'm sure that with proper planning and budgeting, even a very unbalanced dividend payment schedule could be managed without too much difficulty.

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    2. I know once I get to the point of early retirement that I want to have at least one full year of expenses in my checking/savings account to act as my own personal float fund. I feel its much more important to invest in the best companies with the best prospects, managing the cash flow even in retirement becomes secondary to the schedule its paid out. Glad to hear about the increases. I still haven't dabbled in reits because I haven't researched how exactly their business works. Given the yields though I probably need to take the time to learn.

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