Sunday, January 26, 2014

Dividend Increase

My first dividend increase of 2014 is here! Nothing excites me more than getting these increases as each one brings me just a little bit closer to my goals. Plus, it is extra money coming in without me having to do any extra work! What is better than that?

American Realty Capital Properties (ARCP) increased its annual dividend 6.4% from $0.94 to $1.00 on Friday, 1/24/14, as a result of its pending merger with Cole Real Estate Investments. This increases the monthly dividend from $0.07833 to $0.08333 per share. Since I own 89 shares of ARCP, my monthly dividend increases by $0.45 and my forward annual dividend income increases by $5.40. While $5.40 is not much money, it is an extra $5.40 that I don’t have to work for and ARCP is currently the smallest position in my DGI portfolio. It may not be much but these increases will continue to compound and will eventually work out to serious money, helping me one day reach financial independence. Plus, ARCP just gave me a bigger % raise than I expect to receive at work this year which is typically in the range of 2%. This is probably the most excited I have ever been over $5.40 in my whole life! Well, at least my adult life…

7 comments:

  1. As a fellow shareholder of ARCP, this was a welcome increase. I believe they are actually planning on bumping the annual amount to $1.06 ($0.09 per month) later this year once everything continues to settle and come together from their acquisitions. For a high yielder like ARCP, that would be a heck of year if it materializes.

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    1. Yeah it should be $1.06 or $1.08. either way we should be getting another increase when the Cole merger finishes up.

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  2. The short term dividend growth of ARCP is awesome. I can't believe it isn't trading higher, even with its recent run, and I think the market is really undervaluing it today.

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  3. Agree with you Divi! I remember starting about a year and a half ago and it was hard looking at an $8 dividend check. But I always remember what my dad would say: "Hell, that's $8 more than you had yesterday, and you didn't even have to do anything to get it!"

    I think within the next year my portfolio will really start rolling based on dividend increases and dividends received alone as some of my core positions increase. I can't wait to reach what I call "critical mass" - where the sheer amount of dividends received starts to become a huge stream in and of itself. We'll get there before we know it!

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    1. Thats exactly right! A dollar in passive income just feels sweeter than one I have to work for!

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  4. ARCP has been an interesting company to follow because of their growth by acquisition strategy. I went ahead and purchased some to get more REIT exposure, but their growth has been crazy. Loved the increase and I expect there's more to come this year still.

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    1. Agreed. I think their strategy is riskier than say O but you are more than rewarded for it with the yield. I wanted it below $13 so I made a smaller than normal purchase when I grabbed it rather than wait for additional capital. Overall, I'm very happy with it.

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