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Strategies & Market Trends : Dividend Growth Investing and chit chat.

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From: rnsmth12/12/2021 7:41:06 AM
2 Recommendations

Recommended By
cemanuel
red cardinal

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Here is a view of things for 2021 and starting out 2022 in terms of how dividend portfolios.

This is strictly an income view - I have less control over share prices, so do not write about them much.

We will be getting a special dividend from EOG, payable on December 30. It is $2 a share, and I am not sure how I am going to account for it. My initial view is that it is part of our dividend cash flow, so it oughta be counted like any other dividend.

OTOH, it may be a non-recurring event, which will give us a different compare if it does not happen again in 2022.

So, for 2021 it looks like a 10.12% increase without counting the special dividend. Almost 12% increase if I do include the special dividend with the rest of our dividend income.

As far as next year goes. If I take the SSD forward 12 month view of our dividend income (this is not static, it increases as I reinvest accumulated dividends and as companies announce dividend increases).

If I put the special dividend aside, and use the current SSD forward 12 month dividend amount - we already show a 4.3% increase in portfolio dividend/distribution income for 2022. That would put us well on the way to our goal of a 10% increase.

If we include the special dividend into 2021's portfolio income, we would show an increase of 2,6% using the same methods/assumptions as above. Still part of the way to 2022's goal of 10% income growth, but not as much as the 4.3% in the prior paragraph .

In reality, it will not make much difference. It is income that is there in 2021.

How do the rest of you account for special dividends? Include them in the base or keep them separate?
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