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.
May was another solid month for dividend income. I get pretty giddy every time I log in to my brokerage account and see fresh capital via dividend deposits. I don’t know. I’m easily entertained. It was only a few years ago that every single dollar that hit my checking account came by way of me getting out of bed, showering and going in to work. Now, the idea of me living off my dividend income by 40 years old is becoming more and more realistic. How amazing!
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:
- Toronto-Dominion Bank (TD) – $12.28
- AT&T Inc. (T) – $22.50
- Raytheon Company (RTN) – $13.75
- General Dynamics Corporation (GD) – $11.20
- Southside Bancshares Dividend (SBSI) - $3.23*
- The Procter & Gamble Company (PG) – $30.68
- Kinder Morgan Inc. (KMI) – $57.00
Total dividends received during the month of May: $150.64
*This was not a usual dividend payout, but cash in lieu due to a 21:20 stock split by SBSI. This was to represent the .15 shares that I lost in the stock dividend.
Again, another great month! This was a significant improvement upon the $97.07 I received in May, 2012. That’s an increase on the order of 55.2%, which is superb. If I could increase my dividends by percentages like this every year I’d be a very happy investor.
I was only able to cover about 7.4% of my expenses this past month via passive dividend income. This is a rather low number for me, mostly due to the fact that my expenses were much, much higher than normal. I’ll be discussing this in my upcoming income/expense report. I hope to start getting this number up to around 20% or so on a regular basis over the next few months.
My goal is to receive $3,500 in dividends during the year of 2013. We have now seen five months pass us by and I’ve been able to generate $1,170.02 in dividend income so far this year. That averages out to about $235 per month. Extrapolating that out over 12 months puts me a little short of my goal, but I anticipate exceeding my goal as some of the equity purchases over the last few months start to pay out dividends over the latter half of the year.
I’ll update my dividend income page to reflect May’s dividends.
Full Disclosure: Long all aforementioned securities
Thanks for reading.
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