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.
December was a wonderful month for dividends. It turns out that for whatever reason many of the high quality large cap companies that us dividend growth investors follow and invest in (like most oil majors, tobacco companies, industrials, banks) choose to schedule their quarterly dividend payouts for the last month in every quarter. So that means that you’ll typically see a nice little boost in dividend income during the months of March, June, September and, of course, December. Nothing wrong with that, if you ask me. Although my dividend income during early retirement may be a bit “lumpy” due to this payout schedule, I’m keen on budgeting and won’t have a problem rolling over any excess dividend income to the following month(s) when income is a bit lighter.
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:
- Royal Dutch Shell plc (RDS.B) – $22.50
- BP plc (BP) – $45.60
- The Coca-Cola Company (KO) – $22.40
- Realty Income Corp. (O) – $12.73
- McDonald’s Corporation (MCD) – $48.60
- Avista Corp. (AVA) – $16.78
- American Realty Capital Properties Inc. (ARCP) – $7.83
- Johnson & Johnson (JNJ) – $66.00
- Exxon Mobil Corporation (XOM) – $12.60
- Norfolk Southern Corp. (NSC) – $36.40
- Lorillard Inc. (LO) – $55.00
- Target Corporation (TGT) – $10.75
- International Business Machines Corp. (IBM) – $9.50
- Chevron Corporation (CVX) – $40.00
- Emerson Electric Co. (EMR) – $25.80
- Harris Corporation (HRS) – $16.80
- Southside Bancshares, Inc. (SBSI) – $20.46
- Phillips 66 (PSX) – $10.53
- Wells Fargo & Co. (WFC) – $27.00
- Intel Corporation (INTC) – $22.50
- Aflac Incorporated (AFL) – $37.00
- ConocoPhillips (COP) – $37.95
Total dividends received during the month of December: $604.73
Right on! This was my second highest tally ever, right behind September’s monster haul. The snowball is indeed growing, as my Freedom Fund now generates substantial organic income all by itself, even before I add in fresh capital from my day job. Adding in the capital I generate through hard work and combining that with the dividend income my extra worker provides makes for a nice little recipe for building wealth. Sprinkling on the growth in the organic dividend income is simply icing on the cake.
This was a wonderful month. This December’s take was a full 33.7% better than the dividend income I received in December 2012. I’ll take double-digit percentage gains any day of the week!
I was able to cover about 25% of my expenses over the last month via passive dividend income. This would be a much higher number, but I decided to embrace my inner consumer and I really went big on gifts this Christmas. That’s okay because the next 11 months are going to be back to fantastic frugality.
My goal is to receive $3,500 in dividends during the year of 2013. December is in the books, and with that I can close out 2013. Tallying up all the dividends I received throughout the course of the last year, I came up with $3,926.12. I blew away my goal! This was the first time I exceeded my dividend goal so spectacularly. I’m really excited, because everything else aside the dividend income is what’s really going to determine my ability to become financially independent one day. The progress is really happening here, guys. What’s wonderful about dividend growth investing is that the proof is in the pudding. The income is tangible. I can actually physically see freedom one penny at a time. It’s a great feeling!
I’ll update my dividend income page to reflect December’s dividends.
Full Disclosure: Long all aforementioned securities.
How was your December? Better yet, how was your 2013?
Thanks for reading.
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