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.
This past month's dividends were one of my highest ever. Right now I have larger monthly dividend tallies during the last month of each quarter, but as I grow my portfolio this number will smooth itself out over time. I'm not real concerned about it right now, and actually wouldn't be that concerned if it never smoothed itself out. Through consistent budgeting, my expenses are relatively static from month to month, so ups and downs with dividend totals wouldn't really affect my ability to pay my monthly liabilities once I'm actually living off my dividends. I'd simply save the excess dividends from the higher months to make up for the slightly lower totals in other months. This is something to consider for other dividend growth investors out there that have similarly irregular monthly dividend totals.
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:
March 2013 Dividends Received
- ConocoPhillips - $36.30
- Aflac Incorporated (AFL) - $35.00
- Intel Corporation (INTC) - $54.00
- Phillips 66 (PSX) - $8.44
- Emerson Electric Co. (EMR) - $24.60
- Chevron Corporation (CVX) - $36.00
- Lorillard Inc. (LO) - $33.00
- Norfolk Southern Corp. (NSC) - $35.00
- Johnson & Johnson (JNJ) - $61.00
- Southside Bancshares, Inc. (SBSI) - $12.60
- McDonald's Corporation (MCD) - $46.20
- Avista Corp. (AVA) - $16.78
- Harris Corporation (HRS) - $14.80
Total dividends received during the month of March: $413.72
This month is noticeably higher than the $251.35 in dividends I received in March 2012. That's a full 64.5% increase over one year. That's great progress, and I hope I can keep up similar levels of success as I go!
I was able to cover just over 24% of my expenses this past month through the power of dividends. It's really great to know that I was able to cover a quarter of my monthly expenditures by way of complete passive income. The progress of dividend growth investing is real and tangible. The market can decide to mark up or mark down the value of a company day by day, but the dividends will still roll into my brokerage account just like usual. Dividends are reliable just like my expenses, and that's one of the reasons I plan to use this strategy as my primary income generator through early retirement.
With the first quarter of 2013 behind us, I'm now three full months into one of my goals to generate $3,500 in dividends during the year. The year is 25% over and I am 22.5% on my way to completing my primary goal. So while I'm a little behind, I'm confident I'll be able to close the gap as the year progresses. I've now received a total of $786.31 in dividends for the year of 2013!
I'll update my dividend income page to reflect March's dividends.
How are your dividend tallies progressing? Everything progressing the way you had planned?
Full Disclosure: Long all aforementioned securities
Special note: PepsiCo, Inc. (PEP) is listed as paying out its dividend on 3/29/13, but the monies did not hit my brokerage account until 4/1/13. I record the dividends as I receive them.
Thanks for reading.
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