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.
March was a blockbuster month for me. This broke my all-time record, and I have now reached a new high for monthly dividend income. It’s amazing how fast the compounding dividend income snowball can start rolling once you push hard for a few years. Start with a really high hill, plenty of snow (in the form of savings), and push!
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 2014 Dividends Received
- Aflac Incorporated (AFL) – $37.00
- Phillips 66 (PSX) – $10.53
- Wells Fargo & Co. (WFC) – $27.00
- ConocoPhillips (COP) – $37.95
- Int’l Business Machines Corp. (IBM) – $9.50
- Emerson Electric Co. (EMR) – $25.80
- Chevron Corporation (CVX) – $40.00
- Exxon Mobil Corporation (XOM) – $12.60
- Target Corporation (TGT) – $30.10
- Lorillard Inc. (LO) – $61.50
- Norfolk Southern Corp. (NSC) – $37.80
- Johnson & Johnson (JNJ) – $66.00
- Southside Bancshares, Inc. (SBSI) – $13.86
- American Realty Cap Prop Inc. (ARCP) – $8.33
- Avista Corp. (AVA) – $17.46
- McDonald’s Corporation (MCD) – $48.60
- Realty Income Corp. (O) – $12.75
- Harris Corporation (HRS) – $16.80
- BHP Billiton Plc (BBL) – $29.50
- Royal Dutch Shell Plc (RDS.B) – $22.50
- BP Plc (BP) – $45.60
- PepsiCo, Inc. (PEP) – $43.70
- Digital Realty Trust, Inc. (DLR) – $53.95
Total dividends received during the month of March: $708.83
Wow. This is all just amazing to me, it really is. I can’t believe that after four short years I’m eclipsing over $600 per month in dividends on a fairly regular basis. I always say the proof is in the pudding with this investment strategy, and that’s never clearer than during these monthly dividend income reports. The great thing about dividends is that they’re tangible. Cash money can’t be argued with; cash doesn’t argue, it just builds your wealth!
Another fantastic aspect of dividends is that they’re passive. Who wants to spend the rest of their life working for someone else, creating value for an employer? Why wouldn’t you want to pursue your passions on a full-time basis? While it’s oftentimes difficult to turn your passions into a job, dividend income allows you to pursue what you love in life without concern about pay. Once your lifestyle can be paid for, you’re free to spend your life doing whatever it is that you want. Whether you like traveling or just sitting on the couch vegging out to movies, your life can be your own. Be the master of your destiny.
Dividend income this month was a full 71.5% higher than what I received in March of last year. Another month of fantastic progress. Although I know progress in percentage terms won’t continue like this, I’m hoping to sustain absolute progress for the foreseeable future.
The last month of every quarter is usually a big month, and March was no disappointment. I was able to cover about 32% of my expenses this month. It would have been higher but I’m still dealing with a root canal that was started back in January. However, to be able to cover 32% of my expenses during an off-month is extremely encouraging. I know without a doubt in my body that this strategy is working.
I expect dividend income to normalize for the next couple months until I receive another big month of dividend income in June, but I’m super excited about what the next few months will bring. Every dollar that I don’t have to work for puts me one dollar closer to freedom.
One of my goals this year is to receive $5,200 in dividend income during 2014. With the first quarter in the books, I’ve now received $1,393.39 in dividends during 2014. That puts me 26.8% of the way toward my goal for the year. Looks like I may not have challenged myself enough with my yearly dividend income goal, but if I’m able to trounce this goal it just means I’m closer to financial independence than I thought I was. Which is obviously fine by me!
I’ll update my dividend income page to reflect March’s dividends.
Full Disclosure: Long all aforementioned securities.
Did you have a great March as well? Hit some new dividend income records? Closer to financial independence?
Thanks for reading.
Photo Credit: sscreation’s/FreeDigitalPhotos.net
Edit: Added MCD and O dividends that were not correctly imported to my spreadsheet. I then corrected all numbers to reflect proper dividend totals.