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.
These are probably my favorite posts. Dividend income is why us dividend growth investors do what we do, and the harvest this month was once again bountiful. I guess I'm easily entertained. Where some people crave going out for a night on the town and slamming down as many drinks as possible I truly enjoy tallying up my dividend income for the month and realize I'm one month closer to financial freedom. Call me an old soul.
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:
November 2012 Dividends Received
- AT&T Inc. (T) - $22.00
- Raytheon Company (RTN) - $12.50
- General Dynamics Corporation (GD) - $10.20
- Kinder Morgan Inc. (KMI) - $36.00
- Abbott Laboratories (ABT) - $36.21
- The Procter & Gamble Company (PG) - $28.66
Total dividends received during the month of November: $145.47
Bam. Just like that I made over $145 this month, passively, just from being a loyal shareholder of high quality companies. There will be a day, many years from now, when this is small potatoes. One day I'll be a seasoned dividend growth investor with a portfolio well into to the 6-figures. But, the dividends I'm receiving now really puts a smile on my face. I haven't lost sight of where I started, and my perspective needs no refreshing.
This month's total is in-line with what I received last month. Unfortunately, this total does not compare very well with the amount of dividends that hit my brokerage account in November 2011. This is mainly because I received a very large dividend from Telefonica S.A. (TEF), a stock I no longer own. I liquidated my entire position in TEF late last year because I felt the outsized yield was unsustainable (and it was).
This month's dividend income covered 11.6% of my expenses for the month of November. That's awesome! I was able to cover over 10% of my expenses purely by way of dividends, and that's during a month that's not particularly strong for me as some of my larger positions do not pay out this month.
With November's dividends tallied, I have now received a total of $2,150.11 in dividend income through the year of 2012. That's well above my goal, and I still have one month to go! Fantastic. It looks like I may cross the $2,500 passive dividend income mark this year. I can't wait to finish the year strong and put together a really tough goal for 2013.
I'll update my dividend income page to reflect November's dividends.
Full Disclosure: Long T, RTN, GD, KMI, ABT, PG
Thanks for reading.
Photo Credit: sscreations