Another month has passed by, and it's time for me to post an article on my favorite subject: dividend income. The reason why I love to post articles on dividend income is because it's pure numbers. It's hard to argue the success of long-term dividend growth investing when you can slowly and surely see dividend income rise over time and get closer to covering one's expenses.
Below, you can see my dividend income from the month of April. Although not as high as March, it was still awesome to receive money from companies that are out there supplying the world with necessary goods every single day. I feel like every time someone buys a can of Coke or fills up their vehicle's gas tank I get a little piece of that transaction. Although the tangible dividend in my brokerage account is ultimately what I see and care most about, it still is nice to have that emotional and intangible feeling of being a tiny slice of the entire world economy and profiting from it.
I hope these monthly dividend income reports provide inspiration for any investors out there that are just starting out. It's easy to see these payments rising month after month and it shows that it's possible to one day pay for monthly expenses with dividends, which would provide an investor opportunities and freedom to pursue other interests than full-time work. Without further ado:
April 2012 Dividends Received
- The Coca-Cola Company (KO) - $10.20
- Wal-Mart Stores, Inc. (WMT) - $15.11
- Altria Group, Inc. (MO) - $21.32
- Illinois Tool Works Inc. (ITW) - $12.60
- Philip Morris International Inc. (PM) - $61.60
- Total S.A. (TOT) - $23.63
- Medtronic, Inc. (MDT) - $8.97
- SYSCO Corporation (SYY) - $7.83
Total dividends received during the month of April: $161.26
Great! That's over $150 in my monthly income that I wouldn't have had otherwise. Although I selectively reinvest all dividends on a monthly basis, it's great to know that if I ran into a tough financial position I could use that small, but rising, income stream to get myself out of a temporary jam. That kind of flexibility is just one thing I love about dividend growth investing.
This total is significantly less than the total I received last month, but I expected this due to the fact that a much smaller portion of my portfolio pays out in April. However, looking back one year, this is a huge increase over the total dividends received in April 2011 as I more than doubled my monthly take in one year. Based on my expenses over the course of April, I was able to cover 12.5% of all expenditures last month purely by dividends!
I want to make sure I note that the dividend received by TOT is after foreign tax withholding. That's the actual amount that hit my brokerage account, and this is how I always list foreign dividends. Technically the dividend is higher, but I won't receive the portion withheld until I claim it as a credit on my tax return.
This is another step towards reaching my goal of receiving $2,000 in dividend income through the year of 2012. With the first four months of this year behind me, I've now received $724.79 in dividends in 2012. That's 36.2% of my goal, so I'm on pace to easily exceed it.
I'll update my dividend income page to reflect March's dividends.
How did the month of April treat you?
Full Disclosure: Long all aforementioned equities.
Photo Credit: sscreations