Vanguard Natural Resources (VNR) has posted notice that it is raising their monthly dividend from $0.205 to $0.2075 per share per month. This is a 1.2% increase in dividend payouts and comes to $2.49/share every year. It results in a 9.2% dividend yield.
I’m really excited about this. By itself, it isn’t a huge increase. With my position in VNR, it results in an increase of about $7.49/month. Doesn’t sound like much to write home about. But it demonstrates VNR maintaining their historical pace of increasing dividend payments. I am eager for them to continue this over the long term, which will let me pay off my HELOC faster.
After that is taken care of (in an estimate 8 1/2 years), the money will be invaluable to contribute towards paying off real estate loans. Or perhaps I can invest it in other stocks. Or maybe I’ll run into unforeseen circumstances where an extra boost of cash will help deal with something. Every dollar I get through VNR will be thanks to my willingness to take on some low cost debt today in order to build wealth for tomorrow.