Wow! We are now finished with 3/4 of the year and we are heading into a presidential election that is causing the stock market to be significantly volatile. Stimulus packages are on hold until the debate is over and our current President states one will be released, indefinitely. The stock market has pummeled downward and then upward. Talk about unpredictable. Dividend income, though, continues to be a very hot topic, as investors await announcements, fearing the potential dividend cut.

In September, we set another record for dividend earnings and it shows proof that dividend income is one of the best passive income streams. Time to dive into my September 2020 dividend income results.

Dividend Income

Dividend income is the fruit from the labor of investing your money in the stock market. Further, dividend income is my primary vehicle on the road to financial freedom, which you can see through my Dividend Portfolio.

How do I research and screen for dividend stocks prior to making a purchase? I use our Dividend Diplomat Stock Screener and trade on Ally’s investment platform (one of our Financial Freedom products) – commission free.

I also automatically invest and max out, pre-tax, my 401k through work and my Health Savings Account. This allows me to save a TON of money on taxes (aka thousands), which allows me to invest even more. In addition, all dividends I receive are automatically being reinvested back into the company that paid the dividend. This takes the emotion out of timing the market.

Growing your dividend income takes time and consistency. Investing as often, and early, as you can allows compound interest (aka dividends) to work its magic. I have gone from making $2.70 in a single month in dividend income to well over $3,500+ in a single month. That dividend

Today’s Big Picture

Equities in Asia started the week off mostly higher, led by the 2.2% and 2.6% moves higher in Hong Kong’s Hang Seng and China’s Shanghai Composite, respectively. By mid-day trading, European equities were mostly higher as well, and U.S. futures point to a flat market at the open. The U.S. bond market is closed today.

There are four main drivers of equities this week:

  • First is the ongoing fiscal stimulus talks in the U.S., which in our view, look increasingly less likely to result in a deal before the 2020 U.S. presidential election on November 3.
  • The second will be the onslaught of corporate earnings reports this week, particularly for financial firms and large banks. Comments surrounding loan growth, consumer borrowing levels, and the like will be a keen focus as investors revisit growth prospects for the second half of 2020 and consumer spending prospects ahead of the year-end holiday shopping season.
  • The third will be Apple’s (AAPL) “Hi, Speed” event slated for tomorrow, October 13, at which it is widely expected to unveil the 5G iPhone.
  • The fourth is Amazon’s (AMZN) 2020 Prime Day event, which was postponed from its usual time thanks to the pandemic.

As for earnings, Data from FactSet sees the S&P 500 constituents delivering EPS of $33.30 for the September quarter, up dramatically from $28.22 in the June quarter but down considerably from the $42.21 earnings in the September 2019 quarter. With the coronavirus resurgence, we suspect investors will be closely scrutinizing and parsing management comments to determine if the rebound in corporate earnings for the December quarter will materialize as expected. That answer will help shape the next move in equities.

Data Download

Coronavirus

According to a study published last Friday of 1,062 patients in the New England Journal of Medicine,

Dividend growth investingWelcome to the September review of DivGro, my portfolio of dividend growth stocks. My goal with these reviews is to share updates to my portfolio and to detail the dividends I received during the month. Additionally, I look at how the month’s activities have impacted DivGro’s projected annual dividend income (PADI).

In September, I opened one new position and added shares to two existing positions. Ten DivGro stocks announced dividend increases in September. The net result of these changes is that PADI increased by about 2.1% in September. Year over year, PADI increased by 22%.

As for dividend income, in September I received dividends totaling $4,094 from 46 stocks in my portfolio, a year-over-year increase of 22%. I’m happy to say this amount sets a new record for dividend income in a single month!

So far in 2020, I’ve collected $21,659 in dividends or about 80% of my 2020 goal of $27,000.

Source: Author’s Blog (DivGro)

Given DivGro’s PADI of $31,473, I can expect to receive $2,623 in dividend income per month, on average, in perpetuity, assuming the status quo is maintained. But DivGro’s PADI should increase over time because I invest in dividend growth stocks. Furthermore, I plan to reinvest dividends until I retire, so DivGro’s PADI should continue to grow through dividend growth and through compounding.

Source: Author’s blog (DivGro)

Dividend Income

I received dividends from 46 different stocks, for a monthly total of $4,094 in dividend income:

Source: Author’s blog (DivGro)

September’s total is the highest I’ve ever recorded since I founded DivGro.

Here is a list of the dividends I collected in September:

  • Archer-Daniels-Midland Company (ADM) — income of $108.00
  • Aflac Incorporated (AFL) — income of $28.00
  • Amgen Inc (AMGN) — income of $80.00
  • Anthem, Inc (ANTM) — income of $9.50
  • Broadcom Inc (AVGO) — income

BEIJING (Reuters) – China’s exports likely posted a fourth straight month of gains in September as more trading partners reopened their economies, a Reuters poll showed, while imports are also expected to have edged back into growth.

Exports have not been as severely affected by the global slowdown as some analysts had feared, due in part to record shipments of medical supplies and robust demand for electronic products, adding to hopes for a sustained economic recovery.

In September, exports are expected to have risen 10% from a year earlier, according to a median estimate of a Reuters poll of 24 economists. Imports likely rose 0.3% on year, improving after back-to-back decline in July and August.

Exports in August rose a solid 9.5% year-on-year, the strongest gain since March 2019.

Stronger exports could signal a faster and more balanced recovery for the Chinese economy, which is rebounding from a record first-quarter slump thanks to domestic stimulus measures.

A manufacturing survey showed total new orders in September recorded the strongest increase since January 2011, and a gauge for new export orders–which were hit hard by the global outbreak of the coronavirus–rose at the fastest pace in over three years.

“We expect both export and import growth to accelerate further in September. Global growth has continued to recover and strong global housing activity in recent months should support Chinese exports of furniture and appliances,” Goldman Sachs analysts said in a research note last week.

“Import growth may improve in September as well on the back of the solid expansion of domestic activities,” they said.

However, external demand could suffer if virus control measures are re-imposed by trade partners due to a resurgence in infections.

China is meanwhile looking to reduce its reliance on overseas markets for development as U.S. tensions and the pandemic

TOKYO (Reuters) – Japanese wholesale prices fell 0.8% in September from the same month a year earlier, data showed on Monday, marking the seventh straight month of year-on-year declines and heightening the risk the country will slide back into deflation.

Squeezed mostly by soft global demand for commodities and Japanese machinery goods, the weakness in wholesale prices highlights the challenge Tokyo faces in cushioning the impact of the coronavirus pandemic on the world’s third-largest economy.

The 0.8% fall in the corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, was bigger than a median market forecast for a 0.5% drop. It followed August’s 0.6% year-on-year decrease.

Wholesale prices also slid 0.1% in September from August, marking the first on-month drop in four months, the data released by the Bank of Japan (BOJ) showed.

“With the global economy still reeling from the pandemic’s pain, the pace of its recovery remains modest. That will weigh on Japan’s wholesale inflation,” a BOJ official told a briefing.

The drop in wholesale prices adds to headaches for the BOJ, which frets that sluggish consumption, particularly for services, will push consumer inflation further away from its 2% target.

Core consumer prices – the BOJ’s key inflation measurement – fell 0.4% in August from a year earlier, marking their fastest year-on-year drop in almost four years.

The slew of soft price data may increase the chance the BOJ will cut its inflation forecasts at this month’s rate review, when it also conducts a quarterly review of its projections.

Japan suffered its biggest economic slump on record in the second quarter as the pandemic crippled demand. Analysts expect any rebound to remain modest as fears of a second wave of infections weigh on consumption.

(Reporting by Leika Kihara; Editing