I began my journey as a dividend growth investor about a month ago on March 30, 2015 when I purchased shares of Apple (AAPL) for my Dividend Empire Portfolio. If you haven’t read my post “Introduction To Dividend Empire,” the goal of this portfolio is to make regular investments in quality dividend growth companies over my lifetime with all dividends reinvested, with the hope that it will turn into a Dividend Empire for my children and beyond. Since making that first AAPL purchase I have invested in 6 additional companies, I started an additional dividend portfolio for my retirement and I’ve received FOUR pay raises already! After all of that action I was still missing something – I didn’t have any dividend payments!
Well I achieved a milestone today. I woke up to the following email from my broker:
We have credited your TradeKing account with the dividends paid by AT&T INC on 05/01/2015. You should see the credit from this transaction appear shortly on your Activity page, which is accessible via the My Accounts tab on the TradeKing website.
I received my first ever dividend payment from AT&T (T). Back on April 6, 2015 I purchased 100 shares of T just before the ex-dividend date. They have already rewarded me with a strong earnings report and some appreciation in share price, and today they sent $47 to my broker.
I plan on automatically reinvesting dividends into the company that paid the dividend in my Dividend Empire portfolio for the time being. The reason is that this portfolio is relatively small right now, generating ~$500 in dividends annually. It would take too long to accumulate enough cash from these payments to make a purchase and I want my money working for me immediately. In my Dividend Retirement Portfolio, where I have more funds, I will accumulate the dividends to make new purchases.
Here is the breakdown from my first AT&T dividend:
- Quarterly Dividend: $0.47
- Shares Owned: 100
- Dividend Received: $47
- AT&T Shares Purchased: 1.354
- Resulting Income Increase: $2.55
This AT&T dividend is the first of many that will benefit my descendants. I’m currently writing this post from beautiful Yosemite National Park – on my first vacation with my son (he’s napping). It puts a smile on my face as I think about how much these choices I am making today will help my children in the future.