February 2020 Dividend Income

In light of the recent market panic, I thought it would be nice to write a post on why investing for income is so grand. And what better way to do that than to share income generated?

This month we generated $1,256.69 in dividend and interest income across 6 REITs and MLPs. If you aren’t aware, we focus on buying well-managed, higher yielding, yet still growing assets, most of which are REITs and MLPs. There are a few C-Corps that still fit the bill, but they are few and far between, although with the recent downturn, there is good value to be found and we intend to deploy additional cash over the next few days to buy some of those issues to get some of the better tax benefits of qualified dividends.

Without further ado, let’s review:

CompanyTickerIncome
Simon Property GroupSPG$222.60
EPR PropertiesEPR$77.25
Omega Healthcare InvestorsOHI$232.49
Magellan Midstream PartnersMMP$253.79
Phillips 66 PartnersPSXP$221.38
Enterprise Products PartnersEPD$244.75
Interest$4.43
Total$1,256.69

Simon Property Group had an interesting month where they announced that they’d be buying Taubman Centers with a continuing focus on mall-goer experience. They were not immune to the overall market malaise, but that doesn’t matter for those investing for income. They still paid out their dividend, and at 6.82% yield, it’s a hefty one.

EPR Properties was the first income stock that I purchased several years ago. I like it because it buys high quality entertainment assets and pays dividends monthly.

Omega Healthcare Investors is another long-time holding. They are in the long-term care space and have had a bit of a tough time in recent years due to slow-paying tenants, but seem to have recovered well.

I’ll group the MLPs together. These are all pure cash flow investments in oil and gas pipelines. They all generate a ton of cash and tend to increase their dividends / distributions very often. Over time, I’d expect these to not generate much capital appreciation and the competition for pipelines in a commodity that is starting to see peak demand will make these opportunities less attractive over time. However, people still need natural gas for heating and cooking, oil to get refined for gasoline, and people still need plastic products.

Overall, this was a great month in lieu of the crazy coronavirus markets! How was your February?

Finally, be sure to pick up my FREE dividend position tracking spreadsheet and my book Too Much Money on a strategic and tactical approach to dividend investing for current income. These two tools together will help to jumpstart your investing journey!

11 thoughts on “February 2020 Dividend Income

  1. Awesome.
    I just discovered your blog and am new to this type of investing. Forgive me if you covered this elsewhere. But are you more likely to invest in REITs because of tax law changes that made them less taxed? Assuming you invest taxable money. Also, any resources for learning more about MLPs that you recommend? I have REITs but not MLPs.

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    1. Yes to REITs and investing taxable money. The new tax law changes allow you to deduct 20% off the top making them similar to qualified dividends which makes the net yield even more attractive than they already were. I kind of cover that topic in this post, although I didn’t cover the new tax law changes. https://dividendcultivator.com/2019/07/16/dividend-investors-beware-of-tax-adjusted-yields/

      I don’t have any particular resources on MLPs. I mostly look at financials to ensure that revenues and cash flow are growing at a pace to keep up with dividend payouts. They’re similar in a lot of ways to REITs. Instead of square feet, they’re renting throughput.

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  2. Really impressive report and dividend income.

    REITs are a fairly small % of my portfolio right now but after reading this I’m tempted to place a limit order on SPG. Given the way market is heading, we’re probably in for a rude awakening and I certainly don’t mind holding on to high-yield REITs while riding out the turbulence.

    Great post!

    Liked by 1 person

  3. Thank you!

    It’s nice to be able to ride out crazy markets like this and still see dividends getting deposited into your account. SPG is a well managed company and hopeful they continue to navigate the retail apocalypse.

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    1. Thanks Bert! Trying to keep the portfolio as small and manageable as possible while trying to stay somewhat diversified! Love your blog, been following for a while now and love to see the updates.

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