Not exact matches
Overall, the company's strategic plans to improve
organic growth and regain market share will take time to play out, but this blue chip
dividend king should continue delivering rock solid income and low single - digit payout
growth in the years ahead.
But even if he never reinvested any of his
dividends over the past 10 years, thanks to
organic dividend growth, I wouldn't be surprised if he's pulling
in over $ 100,000 per year right now
in passive income.
In my case, my
organic dividend growth has always outpaced inflation since I started my journey.
There were some setbacks regarding
organic growth (Rio Tinto and BHP Billiton slashed their
dividend payments) but also some very substantial
dividend hikes
in 2016.
All
in all, I expect
organic dividend growth to be very robust
in 2018.
The payout ratio is something each DGI has to have an eye on
in order to benefit from solid
organic dividend growth.
As you point out, the
organic dividend growth is equivalent to many thousands of dollars invested
in the corresponding securities.
As
in the past, half of that
growth will derive from new positions (see My stock investments
in 2016) and the other half is expected to come from
organic dividend growth and
dividend reinvestments (see Passive Income review 2016 and Outlook).
USD 25 of the YoY - increase is due to the acquisition of Heineken stocks
in 2016 (that business provided me with total
dividend amount of around USD 60
in 2017) and around USD 15 came from
organic growth (
dividend hikes) and
dividend reinvestments
in Banco Santander.
That allows me to make some projections regarding
organic dividend growth and my expected Yield on Cost (YoC)
in 2017 regarding these positions which I sumarised
in the chart above.
Just to put the
dividend returns into relation: The
dividend yield of my total portfolio currently stands at around 3.3 %, «
organic growth» due to
dividend hikes of my holdings has been between 3 % and 4 %
in the past years.
After the three stock acquisitions (Britvic, ReckitBenkisser and Imperial Brands) and due to further
organic dividend growth on my existing positions, my current projected
dividend income for the year now is well above USD 6» 000, one third higher than
in the previous year (2017: USD 4» 500).