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.
Another great month of passive income. Every dollar that I receive in dividends is one more dollar I have available to me to pay obligations and one less dollar I need to earn at my full-time job that takes up way more of my time than I'd like. Owning high quality companies for the long-term is rewarding in many ways, and the dividends they pay to loyal shareholders is just one of those great rewards.
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:
October 2012 Dividends Received
- The Coca-Cola Company (KO) - $10.20
- Altria Group, Inc. (MO) - $22.88
- Illinois Tool Works Inc. (ITW) - $13.30
- Philip Morris International (PM) - $68.00
- Total S.A. (TOT) - $23.09
- Medtronic, Inc. (MDT) - $9.62
- Sysco Corporation (SYY) - $7.83
Total dividends received during the month of October: $154.92
Not one of my bigger months, as many of the companies I own that pay out during the month of October are smaller positions for me. But, that's not really the point. The point is that I still received $154.92 worth of income during the past month that I didn't have to get up at 6:15 a.m. and work 10 hours for. That's what I'm talking about!
This total is much less than what I received last month, but I almost doubled my take from October of last year. That kind of progress is something I hope I can continue. I'm keeping my fingers crossed!
It should be noted I no longer own shares of Total S.A. (TOT) after I sold my entire position last month. The total you see above is factoring out foreign taxes withheld, of which I'll be credited back when I claim my taxes next spring. So, the dividends I received are technically higher, but I always include the actual dollar amount that hit my account on these reports. That's how I've always done it, and will continue to do it.
This month I was only able to cover 7.8% of my expenses, due to higher-than-normal costs associated with purchasing plane tickets to fly home to Michigan and see family for Christmas. If you factor this out, I was able to cover 12.2% of my expenses, which is really more accurate for tracking purposes. I don't buy plane tickets more than once or twice a year.
Drumroll, please. With October's dividends now tallied, I have now exceeded my goal of receiving $2,000 in dividend income through the year of 2012. I've received a total of $2,004.64 in dividends during the year of 2012. Woo-hoo! That's $2,000 in real U.S. cold hard dollars that were paid out to me. They were paid electronically, but still...you get the point. That's simply awesome! I have two months left this year to pad the total. I'm really excited! I'm going to have to put together a tougher challenge for 2013!
I'll update my dividend income page to reflect October's dividends.
Full Disclosure: Long KO, MO, PM, ITW, MDT, SYY
How was your October?
Thanks for reading.
Photo Credit: sscreations