How to Read the Dividend Portfolio Tables

This post will help you navigate the tables in my Dividend Portfolio Blog

Below, you will see a table I use in almost every Dividend Portfolio post. The purpose of this table is to show you exactly how much money you receive per month when you buy a dividend stock. In the investing world, this is called “buying income.” Why? Because you are using your money to purchase more money, like a second paycheck. Instead of working for that paycheck, you just buy it.

If you look at the first row, focus on Cash Paid and Additional Div. Cash Paid is how much cash I invested and Additional Div is how much money I will receive per month by investing the amount in Cash Paid. You can see that for $94.17, I will receive $0.95 a month. If you multiply that by 12 (for 12 months), you receive $11.40 a year. $11.40 divided by $94.17 is the Yield, shown in the final column. You have seen “yield” in your bank and savings accounts. Go see what a yield is on an Ally Bank CD or a Bank of America Savings Account. You may be impressed that this stock pays you 12.06% .

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Next, look at the first column, named Div per Share. This is the dollar amount per share you will receive each month. A company will announce their dividend distribution amount and date either monthly or quarterly. It is as easy at it sounds. If you own one share and they declare a dividend of $0.18, you will receive $0.18 in your bank account.

The table above represents AGNC. They package mortgages and use fancy financial instruments to get people to buy things that they probably can’t afford unless they pay it off over 30 years (#America).

AGNC is a stock that pays out a dividend, meaning that they pay you to own their stock. Unlike most traditional dividend stocks, AGNC pays their dividend monthly instead of quarterly.

Every month, AGNC announces how much money they are going to pay you for every share you own. Every single finance website will post something to reflect the announcement.

So, back to the table. Div per Share is $0.18. The column, Date, describes when and how this payment was made. This is just a name made up by me, but there are only a few options:

DRIP stands for Dividend Reinvestment Program. This means that instead of taking the Cash Paid, I told them to keep the money and just give me more stock.

So, the first row says Dec DRIP and Cash Paid is $94.17. Just FYI, this means I owned 523.17 shares in December because

523.17 Shares*$.018 = $94.17

Shares Acquired is the amount of shares this transaction earned me, so 5.2585 additional shares. The Settlement Price is $17.91. As you would expect:

$94.17 (Cash Paid) / $17.91 (Settlement Price) = 5.2585 (Shares Acquired)

So instead of $94.17 going to my brokerage account, I received 5.2585 shares.

Finally, Additional Div is merely Shares Acquired * Div per Share, or:

$0.18 * 5.258 = $0.95

So by letting them keep the money, I will make $.095 more next month.

$94.17 + $0.95 = $95.12

If you let this happen every single month, your money will just keep buying you more future money.

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