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 was yet another great month in the saga that is my journey to financial independence. Think “As The Dividends Turn (or churn).” Thirteen companies paid me completely passive dividend income this past month. That was thirteen companies that continue to take me as a shareholder/investor and our relationship as business partners seriously. And with that, I’m a pretty happy camper!
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:
- PepsiCo, Inc. (PEP) – $43.70
- Walmart Stores, Inc. (WMT) – $17.86
- Baxter International Inc. (BAX) – $22.05
- Illinois Tool Works Inc. (ITW) – $14.70
- Philip Morris International Inc. (PM) – $94.00
- Altria Group Inc. (MO) – $38.40
- Digital Realty Trust, Inc. (DLR) – $50.70
- Realty Income Corp. (O) – $12.75
- American Realty Cap Prop Inc. (ARCP) – $7.83
- Sysco Corporation (SYY) – $8.41
- Medtronic, Inc. (MDT) – $10.36
- General Electric Company (GE) – $15.40
- The Bank of Nova Scotia (BNS) – $11.81
Total dividends received during the month of January: $347.97
Hell yeah, now that’s a great start for the year right there. My compounding snowball is now almost $350 larger than it was last month without any input from me. And that’s one thing I really love about dividend growth investing: it’s the inaction that sometimes makes it so rewarding!
This January’s tally was my largest January ever, and a full 121% higher than what I took in during the same time frame last year. My progress won’t see huge, double-digit gains year-over-year often from here on out, because as my totals get bigger it will be impossible to maintain the high percentages. However, I am looking forward to big improvements going forward when looking at the absolute numbers.
I just continue to get more and more motivated as time goes on because the tangibility of dividends allows me to continue seeing my success right in front of my face. It’s hard to argue with cash, and that’s exactly what dividends are. And that’s another thing I love about dividend growth investing: success begets success. And by that, I mean the more dividends you receive the more encouraged you are to keep reaching for more. And it gets easier to do so because the larger dividend totals allow for greater compounding ability.
Inaction + ever-greater cash = happiness.
I was only able to cover about 14% of my expenses this month because January ended up being one of the most expensive months I’ve had since I first started living frugally. I had to finally get a root canal done on a tooth that’s been giving me trouble for a number of months. I was putting it off, but it had to be taken care of. That’s $1,200 I could have put to great use with a high quality company, but, obviously, health comes first. I’ll be discussing the disappointing month very soon when I release January’s budget. Hint: it ain’t pretty.
One of my big goals is to receive $5,200 in dividends during the year of 2014. This is a great start for the year, and I’m now 6.7% of the way there. I expect a big month in March to keep me on track, as well as a big push toward the end of the year. I wanted a difficult goal to push myself, so we’ll see how I do!
I’ll update my dividend income page to reflect January’s dividends.
Full Disclosure: Long all aforementioned securities.
How was your January? Off to a great start for the year?
Thanks for reading.
Photo Credit: sscreation’s/FreeDigitalPhotos.net
Edit: Corrected year.