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.
Passive income is a wonderful thing, isn't it? I'm so grateful that I decided to become a dividend growth investor back in early 2010. It's a decision that has changed my life. I truly get excited every time I log in to my brokerage account and see fresh, new capital in the form of dividends. This is cold, hard cash I didn't have to do anything for. Well, I did do something: I invested my money into high quality companies that reward me for doing so. It's a great relationship!
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:
February 2013 Dividends Received
- AT&T Inc. (T) - $22.50
- Vodafone Group Plc (VOD) - $76.20
- Raytheon Company (RTN) - $12.50
- AbbVie Inc. (ABBV) - $28.40
- Abbott Laboratories (ABT) - $9.94
- The Procter & Gamble Company (PG) - $28.66
- Kinder Morgan Inc. (KMI) - $37.00
Total dividends received during the month of February: $215.20
This month compares very favorably with the $146.49 in dividends I received in February 2012. That's a 46.9% increase in one year, which is really fantastic. My portfolio is actively growing and changing, so some months are going to compare better with others as the companies I'm invested in change over time. Also, it should be noted that General Dynamics Corporation (GD) accelerated its dividend and paid out in December of 2012, rather than this month as it usually does. This was in response to the possible tax increases that were on the table as part of the Fiscal Cliff negotiations. It should also be noted that although I received dividends from the companies, I recently sold my positions with Abbott Laboratories (ABT) and AbbVie Inc. (ABV). Time will tell if this was a wise decision. I'm open minded to buying shares in ABT at a later date if the dividend increases are substantial enough to warrant consideration.
Another great stat is that the passive income I received in the form of dividends this past month covered a full 16% of my expenses for the month of February. I've been at this for three years now, so the progress is real and tangible. This month's dividends could have covered almost half my rent, or I could have covered my entire transportation bill and half of my food expenses. Good stuff!
With February behind me, I'm now two months into my goal of receiving $3,500 in dividends during the year of 2013. I'm 10.6% of the way there, so I feel great about my chances of exceeding my goal. It'll be exciting to keep adding shares in quality companies to my Freedom Fund as the year progresses, which will naturally add to my monthly dividend tallies. Please continue to follow my journey as we mutually inspire and motivate each other!
I'll update my Dividend Income page to reflect February's dividends.
How is your journey to financial independence going?
Full Disclosure: Long T, VOD, RTN, PG, KMI, GD
Thanks for reading.
Photo Credit: sscreations