Dividend investing works best when you largely ignore news headlines and focus on income durability. While markets had their usual short-term unpredictability dance, my portfolios quietly did what they’re supposed to do.

Last month, annual income increased by $146, driven by dividend raises from Plains (+9.9%), Fastenal (+9.1%), and eleven other holdings. I don’t gamble that the Magnificent 7 stocks continue their meteoric rise. I’m happy with maintaining principle, although growth is nice too. The point is to be cool, calm, and content with nothing special or super exciting. I invest in businesses that generate enough cash to distribute to shareholders.

That is the part of dividend investing that doesn’t enough attention. Income growth only needs companies with pricing power, steady demand, and management teams that treat the dividend as a commitment.

January also included three Dividend Safety Score changes (according to Simply Safe Dividends), which matter more to long-term income investors than short-term yield changes.

• Genuine Parts was downgraded to Safe. The dividend remains well covered, but financial flexibility has narrowed. This is not a crisis, but it is a signal worth watching.
• Telus was downgraded to Borderline Safe. Years of heavy spending on fiber and 5G have increased leverage at a time when competition is intensifying.
• Healthpeak Properties was also downgraded to Borderline Safe. The dividend remains sound for now, but weakness in life science real estate is becoming harder to ignore.

None of these changes necessarily mean “sell.” They mean pay attention. Risk does exist and its best to recognize it early.

Thirteen dividend increases in January

In total, 13 holdings raised dividends during the month. Here’s the rundown.

• Plains All American Pipeline +9.9%
• Fastenal +9.1%
• Chevron +4.1%
• Con Edison +4.4%
• Energy Transfer +0.75%
• ONEOK +3.9%
• Verizon +2.5%
• OZK (Bank OZK) +2.2%
• Arrow Financial +2.0%
• Air Products +1.1%
• Kimberly-Clark +1.6%
• Black Hills +4.0%
• Enterprise Products Partners +0.92%

Some increases were large, others small. Dividend growth occurred across energy, industrials, healthcare, consumer staples, financials, and real estate. This is what diversified income growth looks like when it is working.

January ended the way a good month should for an income investor with more income than it started and a clearer understanding of risks.