As a dividend investor, there is nothing I love more than watching a juicy dividend fall into my account. From there, I reinvest the dividend to eventually return me even more dividends.
But, I just lied to you, because there is something I love more than a juicy dividend payment. It's a juicy dividend increase! I don't own very many individual holdings compared to much more prominent investors, but I was lucky enough to have two of my holdings announce that they were having a dividend increase.
If you're not familiar with what this means, it just means that the company has agreed to pay out a larger amount per share to the share holders than the previous dividend. Essentially, this means a pay raise for the dividend investor because they will be getting more income each time a dividend payment happens.
Sadly, dividend increases do not happen every time a dividend payment is declared. Some companies declare an increase once a year, some companies may never offer an increase, and some (We hate to see it...) companies have to lower their dividends. It's all a matter of how they want to run their business and want to reward their share holders.
But enough of the theory, let's get into what the actual info is! So what two companies gave me a pay raise this week? Why, it's none other than Realty Income Corporation ($O) and Gladstone Investment Corporation ($GAIN)!
The SeekingAlpha articles on both announcements can be found below;
So what does that mean for me? Well, For $O I will now be earning $.005 more per share that I own and for $GAIN I will be earning $.002 more per share that I own. This may not seem like much, but owning a lot of shares can make this multiplier extremely powerful!
Let's see how this looks in my current portfolio;
- $O - 17.83364 shares x $.005 = $0.0891682
- $GAIN - 216.79509 x $.002 = $0.43359018
Again, this may seem small but this is $0.51 extra buying power to buying more dividend stocks that I didn't have before. And best of all, I didn't have to do anything to earn it beyond just being a loyal share holder!
This also plays in quite nicely to my previous post about steady dividend income. It even uses $O as the example! I love when everything comes full circle and begins to make sense!
I hope this opens your eyes a bit more to how powerful dividend investing can be and I hope it was fun to see the power of a small pay increase. Let me know below with any comments, questions, concerns, or rude remarks in regards to my strategy!
