Dividend Income Update – October 2012

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

Comments

    • says

      Passive Income Pursuit,

      Thanks!

      I’m really glad to pass the goal a couple months early. That’s really fantastic.

      I’d also like to get my October payout higher. Specifically, I’d like to add to my KO and MDT positions at some point in the near future. Both are very high quality companies. SYY is a very small position for me, and at some point I’ll have to add to that as well.

      Great work on your end. You had a great October!

      Best wishes!

    • says

      I need to look back into KO. It’s about time to add some more to it. There’s so many stocks that i need to add to that i already own but it’s fun to research new companies. The good thing is that with my high income and savings rate i get to add a good chunk of fresshcapital every month.

  1. says

    Awesome DM!! I will tell you the same thing I did Dividend Growth Machine, set the bar higher for next year. Have you started to think of of goal for divi income next year? Congrats on the proress man. I know you put a lot of effort into this and it’s great to see the results. Thanks for continuing to share it with us.

    • says

      The Stoic,

      Thanks for stopping by. I appreciate the support!

      I’ll definitely have to set the bar higher for next year. I’m not sure of my goal yet, but I’ll probably want to put it somewhere between $3,500 and $3,800 depending on where I end this year. That will definitely make it challenging!

      It’s a lot of work to do what I do, but the reward is well worth it. I’m really glad that people come here and find inspiration. That’s what it’s all about for me.

      Best regards.

    • says

      Congrats, you’ve managed to double the amount of dividend you received in October (compared to last year). Now that’s what I call real, quantifiable proof that the strategy is working!

      $2000 in a year is also a great haul. That’s about $167/month you’ll be receiving in FI to pay for groceries, utilities, internet, cell phone, etc.

      Keep up the great work and progress, as always.

    • says

      FI Fighter,

      “That’s about $167/month you’ll be receiving in FI to pay for groceries, utilities, internet, cell phone, etc.”

      Exactly. That’s really what this all comes down to for us seeking financial independence. Those monies can pay for a good portion of my bills, and that’s all I care about.

      You’re doing great as well. I think you’ll probably beat me to FI, so you’ll have to tell me what it feels like! :)

      Best wishes.

    • says

      DGM,

      Thanks buddy!

      I guess my goal was too easy this year. I just barely made it last year, so I’ll have to really challenge myself in 2013.

      Congratulations to you on your success this year too. 2012 has been good to us, and I have a lot to be thankful for heading into the holiday season.

      Take care!

    • says

      Compounding Income,

      Thanks for the support.

      Yes, MDT is a winner long-term. Some people are concerned with ObamaCare and the implications regarding new taxes on Medtronic products, but I’m investing in MDT for the next 50 years. Short-term issues are just bumps in the road.

      Best wishes!

  2. says

    That’s awesome! I just did my own first ever monthly dividend income report and it’s not nearly as impressive as yours – but I’m just starting out. I plan to set myself an aggressive goal for 2013 and look forward to meeting it.

    Thanks for the inspiration – keep up the good work!

    • says

      Rising,

      Thanks for stopping by!

      Hey, my first ever dividend income update on this site showed income of a little over $30. It grows little by little, month after month. Take the time to water your dividend garden, and the trees will grow!

      I’m glad you find inspiration here. That’s why I do this.

      Best regards.

    • says

      Investing Early,

      Thanks for that! Looks good when you put them next to each other like that. Very cool.

      Yeah, this is definitely one of my weaker months. My largest position, PM, definitely helps smooth things out.

      Hope all is well on your journey as well.

      Take care!

  3. Anonymous says

    Mantra
    First, congratulations on reaching your goal. Don’t get hung up in what month a dividend is paid, ie October. Just keep buying the best dividend growth stocks each month like you are doing. You are disciplined, so it doesn’t matter when you reach financial independence if you receive more $$ in one month and less in the next, since you will be on a budget anyway.
    Scott

    • says

      Scott,

      Thanks for the congrats! It definitely feels good to set a goal and reach it. I’m blessed and lucky.

      I hear you on the payout schedules. They don’t really matter to me, to be honest. By the time I’m actually living off my dividends my monthly payouts will probably be closer in absolute terms anyway, and it won’t matter because, as you said, I budget pretty tightly.

      Thanks for stopping by!

      Best wishes.

  4. says

    Cool and informative post DM, as usual.

    My October was.. $27.25 (don’t laugh). This year it’s November the biggest one with $84.19.

    Congrats for your $2000 goal! :)

    • says

      JF Baconnet,

      I’m definitely not laughing, buddy! It wasn’t that long ago that I was receiving even less than that. The dividends definitely compound quickly. It’s all about staying consistent and purchasing high quality companies at attractive prices.

      Good luck to you on finishing the year strong!

      Take care.

  5. says

    Dividend investments would be exactly what you need in the world of investments – especially when other kinds of investments are not working the way they usually do. Besides, buying investments that can provide steady dividends will benefit you in various ways and they are very flexible when it comes to fitting into an investment portfolio.

    Best Dividend Paying Stocks

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