September 2024 marked another solid month of dividend income, showing strong resilience and growth across various sectors of portfolio. With a total of $3,032.04, this month’s dividends have continued to build on the foundations laid in previous years, although the growth rate has somewhat moderated compared to past years. Below is an analysis of the key contributors, notable performers, and the overall portfolio outlook.
1. Total September 2024 Dividend Income: $3,032.04
The total dividend income for September 2024 reached $3,032.04, continuing the trend of annual growth. This figure represents an 8.29% increase from September 2023’s dividends of $2,799.97. While the growth rate is slightly lower than in previous years, the overall portfolio remains robust, highlighting the benefit of a diversified dividend strategy.
2. Top Dividend Performers
Several stocks have played a significant role in driving the strong results for September 2024:
Broadcom (AVGO): Leading the charge once again, Broadcom contributed $115.73, up from $98.72 in September 2023. This 17.21% increase continues to demonstrate Broadcom's role as one of the highest dividend contributors in my portfolio, benefiting from strong performance in the semiconductor industry.
Discover Financial Services (DFS): With dividends of $158.73, Discover Financial has once again been a significant contributor, showing modest growth of 2.66% over last year. While this growth is slower than in previous years, the financial services sector remains a key part of portfolio.
Lockheed Martin (LMT): Lockheed Martin provided $121.45 in dividends, an 11.54% increase from 2023. This reflects steady growth driven by its strong defense contracts and solid financial health.
Chevron (CVX): The energy giant contributed $50.54, an increase of 12.42% from the previous year’s $44.96. Chevron’s reliable performance shows that the energy sector continues to offer substantial returns amid market volatility.
Johnson & Johnson (JNJ): A stable performer, JNJ’s dividends rose from $64.64 to $69.45, showing 7.43% growth. This steady increase highlights its position as a reliable healthcare stock, especially during times of market uncertainty.
3. Consistent and Reliable Payers
Several companies continued to deliver consistent and reliable dividend payouts:
Microsoft (MSFT): Microsoft delivered $12.45, up 11.16% from $11.20 in 2023. Microsoft’s consistent growth underscores its ongoing dominance in the technology space and its ability to return value to shareholders.
PepsiCo (PEP): With dividends of $21.41, PepsiCo showed a 10.36% increase, reflecting the stability of consumer staples in a balanced portfolio.
Gilead Sciences (GILD): Gilead contributed $40.59, marking a 6.94% increase from 2023. Healthcare continues to be a strong performer, and Gilead’s consistent growth shows it is well-positioned for long-term returns.
The Southern Company (SO): SO’s dividends grew from $28.58 to $30.57, an 6.97% increase that highlights the reliability of utilities as a steady income source.
4. Dividend Declines and Changes
Although most stocks in the portfolio experienced growth, a few have either reduced or paused dividends:
3M (MMM): After a peak of $91.82 in 2023, 3M’s dividends dropped sharply to $44.58 in 2024, a 51.45% decrease. This is due the split in company and Dividend was CUT
BHP Group (BBL): BHP’s dividends were notably absent this September, having been moved to October 2024. This shift in the payment schedule is a logistical change and not a dividend cut but does affect the year-on-year comparison.
SCHD (Schwab U.S. Dividend Equity ETF): SCHD’s dividends dropped from $87.64 in 2023 to $77.36 in 2024, a 11.73% decline. This decrease could be a result of shifts in the ETF’s underlying holdings, reflecting broader market trends.
2024 Dividend Goal: The year-to-date (YTD) dividend of $13,506.24 reflects 69.25% of the $19,500 goal for 2024
6. Conclusion
September 2024 has proven to be another successful month for dividend income, continuing the trend of solid growth. While some stocks like 3M and BHP faced challenges, the overall portfolio performed well, with significant contributions from tech, financials, and energy sectors.
The 8.29% increase in dividends compared to September 2023 highlights the importance of maintaining a diversified dividend portfolio, ensuring that even when certain stocks underperform, others can help drive the overall growth. Looking forward, continued vigilance in monitoring portfolio performance and adapting to market conditions will be essential to sustaining this growth.