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.
January's dividends were not particularly spectacular. This was due to the fact that a number of companies that usually pay out in January decided to accelerate their dividend payments in time for a December payout in case there were dramatic tax changes affecting dividends due to the Fiscal Cliff concerns. Obviously we all know those concerns were overblown, but the fact that some of these companies are so thoughtful about individual investors makes me smile. I would have preferred to keep the dividends on a regular schedule, but again the decision was made with shareholder's best interest in mind. In any case, I'm always excited to post these updates and I'm always grateful to receive a piece of profits from the ongoing business operations of companies I own a stake in. It does give me great joy!
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:
January 2013 Dividends Received
- PepsiCo, Inc. (PEP) - $41.39
- Altria Group, Inc. (MO) - $22.88
- Philip Morris International Inc. (PM) - $85.00
- Sysco Corporation (SYY) - $8.12
Total dividends received during the month of January: $157.39
While not as high as the dividend income I received in January 2012 due to the aforementioned accelerated dividend payouts, I always try to keep perspective. This was cash money that I didn't have to clock in to a hellish workplace to earn. I didn't have to hit my alarm clock at 6:15 in the morning, catch a bus ride 25 minutes down the road and bust my ass for 11 hours. All I had to do was invest in high quality companies that continue to increase earnings and pay me out increasing portions of those earnings. Sounds good to me!
These dividends covered a full 13.2% of my expenses this month. Not bad for a relatively sub par month of passive income. I continue to see the real results that this strategy offers and it inspires me to keep going.
With January's dividends in the book and behind us, I'm one month in to the journey towards this year's goal of receiving $3,500 in dividends during the year of 2013. I'm only 4.5% of the way there, but I anticipate making up a lot of ground throughout the year as I continue to make monthly purchases into high quality dividend growth stocks trading for attractive prices. I'm excited to continue this journey, and I hope you're excited to continue yours as well!
I'll update my Dividend Income page to reflect January's dividends.
How is your journey to financial independence going?
Full Disclosure: Long all aforementioned securities.
Thanks for reading.
Photo Credit: sscreations