Dividend Income Update – September 2014

moremoneyAnother 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.

September was just phenomenal, and another big step in the right direction. This was the second time now I’ve exceeded $700 in a single month, and I justΒ broke my all-time record for dividend income in a single month. I know people like to debate the usefulness/effectiveness of dividends from an academic standpoint, but I live and breathe in the real world, where this dividend income provides tangible results. My passive income continues to climb higher every single month, slowly bringing financial independence into view. And what a lovely view it is!!

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:

September 2014 Dividends ReceivedΒ 

  • Wells Fargo & Co. (WFC) – $31.50
  • Aflac Incorporated (AFL) – $37.00
  • Phillips 66 (PSX) – $13.50
  • ConocoPhillips (COP) – $40.15
  • Visa Inc. (V) – $2.00
  • Wal-Mart Stores, Inc. (WMT) – $18.24
  • Southside Bancshares, Inc. (SBSI) – $15.40
  • Johnson & Johnson (JNJ) – $70.00
  • Emerson Electric Co. (EMR) – $25.80
  • Chevron Corporation (CVX) – $42.80
  • International Business Machines Corp. (IBM) – $11.00
  • Lorillard Inc. (LO) – $30.75
  • Norfolk Southern Corp. (NSC) – $39.90
  • Target Corporation (TGT) – $36.40
  • Exxon Mobil Corporation (XOM) – $13.80
  • Realty Income Corp. (O) – $12.80
  • American Realty Capital Properties Inc. (ARCP) – $14.17
  • Avista Corp. (AVA) – $17.46
  • McDonald’s Corporation (MCD) – $48.60
  • BP Plc (BP) – $46.80
  • Harris Corporation (HRS) – $18.80
  • BHP Billiton Plc (BBL) – $31.00
  • Royal Dutch Shell Plc (RDS.B) – $23.50
  • Digital Realty Trust, Inc. (DLR) – $53.95
  • PepsiCo, Inc. (PEP) – $50.44

Total dividends received during the month of September: $745.76

What can I really say? It’s just amazing to see almost five years of hard work come to life like this, with real, tangible results. This is cash money. Although my Freedom Fund’sΒ value may fluctuate up and down, the dividend income the portfolio generates shows a slow, steady trend upward. I know some people like to rely on their net worth for a benchmark of success and/or progress, but I can’t go down to the local net worth store and buy stuff. I need cold, hard cash, and steadily increasing dividend income gives me the confidence I need to enter the realm of financial independence.

I wish every month was like this, but a significant portionΒ of my portfolio pays out dividends during the last month of every quarter. Factor in semi-annual dividends (like BBL and RDS.B) and some monthly dividends (like ARCP and O) and 25 different companies sent yours truly a check. It’s good to be a dividend growth investor!

September 2014’s dividend incomeΒ was 16.4% higher than what IΒ received during September of last year. A very solid year-over-year increase, in my view, considering that as my income grows these increases in percentage terms will naturally fall. The key is to focus on absolute gains, and the $100+ improvement is wonderful.

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I coveredΒ 39.3% of my personal expenses this past month via passive dividend income alone. That means I only had to cover the remaining 60% of my personal expenses via active income generation, which significantly lightens the load. The weight just melts off the shoulders when you know you that a substantial portion of your expenses are covered before you even go out in the world and try to make a buck. You’re already ahead of the game at that point. This result is even more impressive when considering I had significant one-time expenses (or is that two-time expenses?) during SeptemberΒ after moving halfway across the country.

Looking forward, the last quarter of of the year should be really exciting. I’ve made steady progress throughout the first nine months to continue the momentum forward, planting seeds that will eventually yield dividend fruit. I’m extremely pleased that I’ve been able to continue my regular stock purchasing habits even while transitioning to a new writing career.

My big goal this year is to receive $5,200 in dividend income throughout 2014. With September’s hugeΒ numbers behind me and the first three quarters of the year in the books, I’ve received $4,301.76 in passive dividend income thus far for the year. That means two things happened: I crossed over $4,000 during one calendar year for the first time ever, and I also absolutely crushed the $3,926.12 in dividends I received for the entire year of 2013. So I’ve got three months left to keep that momentum moving while I also cross over $5,000 in one year as well. That means I’ll pass both $4k and $5k this year, which is just phenomenal. Success begets success, especially when we’re talking about compounding. I’m averaging $477.97 per month in dividend income this year, which means I should comfortably exceed my dividend income goal.

I’ll update my dividend income page to reflect September’s dividends.

Full Disclosure: Long all aforementioned securities.

How was your September? Was it outstanding?Β 

Thanks for reading.

Photo Credit: holohololand/FreeDigitalPhotos.net

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125 Comments

  1. Jason,

    congrats on a great dividend month.
    Since you have invested in great companies and continue to do so, the records will keep falling.

    Happy to have you as a beacon of where five years of hard work and frugality can lead to.

    All the best!
    Stef

  2. Congratulations on your biggest month ever! I bet you feel so good, as the numbers just prove your theory correct, again and again. Have you thought about what number you’re going to aim to achieve in 2015? 40% of expenses covered is also phenomenal at this stage. Here’s to reaching the 50% mark!

  3. Wow! You’ve had an incredible month! Talk about picking off those milestones left and right. And covering almost 40% of your expenses is incredible. The halfway point is getting closer!

    Isn’t it great to have over 25 jobs where your only responsibility is to do nothing? πŸ™‚

  4. Wow that’s a great total, definitely an inspiration for me at least. It looks like a few of those are monthly payers but 25 companies is quite a bit of diversity. Keep up the good work.

  5. Well done Jason!!! How are you doing re: other goals (ie. weight, online income)? All your hard work in creating a following on this website and the blogs posted on other sites seems to be generating some nice income (according to your monthly budget recaps) which will, likely, one day supplement your dividend income. πŸ™‚

    Did anything you are doing re: developing passive income rub off on your family members or are they still content to trade time for money?

    I am cautiously optimistic I will reach the $49,000 level in dividend income this year. I keep hoping for a nice “BIG” market correction so as to allow me to deploy more money toward dividend paying stocks but my wishes are not being granted!!! OH WELL! Patience, patience, patience. The nice things about investing is that you don’t have to swing at every pitch.

    Chuck in Ontario

  6. Great month Jason! Congrats on the new record, that is a remarkable amount to receive in one month. What I love about dividend records is that you are set to continue breaking the record each year, even if you do not invest and barring a dividend slash (I would hope our investing strategy pevents us from investing in companies that will slash their dividend). I agree with you about the actual dividend benchmark as opposed to net worth. Net worth is focused on the value of assets at that moment in time and as we know fair values a can change frequently. Is your house really at the value you are listing it at, can you really sell your car for the listed value, etc. As you point out, dividends received is an actual number and in my opinion is a beer metric for investing progress (assuming your strategy is dividend growth investing).

    Again, congrats on the great month, you should easily surpass your goal of 5k and can hopefully cross 5,500! Keep up the freak work and keep on sprinting towards financial freedom! Your process is inspiring to investors like me that have watched your portfolio grow over the years. While we are far behind, it shows that with a disciplined approach that one day our income can reach your levels. I can’t wait to cross 5k in dividends annually one day.

    Bert

  7. Stef,

    Thanks so much. It’s been a great combination of hard work and luck for me thus far, but the support of readers like yourself has also been crucial. I appreciate it! πŸ™‚

    I know for sure that this is possible for anyone, so I’m more than happy to lead the way and show what can be done.

    Thanks for stopping by!

    Best regards.

  8. Nicola,

    Thank you so much. It’s been a fantastic journey, and I’m truly blessed. πŸ™‚

    I’ve been thinking a lot about my dividend income goal for 2015. How does $7,000 sound? Has a nice ring to it!

    Thanks for dropping by. I hope your arm starts feeling better soon.

    Cheers!

  9. Seraph,

    I’m with you all the way! It’s absolutely wonderful to get paid for great past decisions. One great decision can change the rest of your life for the better, but repeating great decisions over and over again creates a whole new reality. πŸ™‚

    Keep up the great work over there!

    Take care.

  10. Captain,

    Thanks so much. I do hope these reports continue to inspire people out there! πŸ™‚

    Keep up the great work over on your end as well. Your dividend income chart is definitely moving in the right direction.

    Best wishes!

  11. Truly excellent. Almost $750 in dividends is fantastic. I almost joined you in the $700 club but I came up a about $2 short. You’re absolutely killing it and blowing past both $4k and $5k this year will be awesome. I bet you end up pretty near $6k by the end of the year so I’ll be looking forward to your goal for 2015. Keep on motivating Jason!

  12. Chuck,

    Thanks for checking in! The other goals are going very well. The only one I’m having difficulty with is the savings rate. I know for sure I’d be crushing it had I stayed working in the auto industry, but the move to writing is one of the greatest decisions I’ve ever made. We’ll see how it turns out, but I think I’ll end up just short of 50%. Probably closer to 45% or so, which is still solid.

    Nothing I’m doing has rubbed off on any of my family members. I’ve never contended that this lifestyle is for everyone. But I just hope that they’re happy. Some of the resentment I experienced up there leads me to believe that certain other people are projecting their own unhappiness and insecurities onto me, but such is life. The great thing is that this has rubbed off a bit on my significant other, which I’ll be discussing more in-depth at a later time.

    Congrats on your monstrous success. $49,000 in dividend income is truly phenomenal. It just proves that it’s more than possible to earn a sizable income stream from dividends, which would obviously free one to spend their time as they please. That’s extremely inspiring. Keep it up!!

    Best wishes.

  13. Dm,

    Awesome on passing the 700 dollar mark again. I got some dividends from Umicore which pushed my dividends this year past 5 000 EUR. It almost pays my mortgage completly, which is a great feeling. I will have a place to stay no matter what happens.

    Cheers,
    G

  14. Bert,

    Thanks for the support. Much appreciated!

    I’m with you. Net worth is just a fluctuating number, and a snapshot that probably isn’t 100% accurate. Dividends, on the other hand, is cash money that’s accurate down to the penny. Even better, it can be forecast, whereas net worth cannot.

    It makes me incredibly happy to know these reports continue to inspire others out there. I know without a doubt that financial independence is attainable for virtually anyone/everyone, and I’m out to prove it! πŸ™‚

    Thanks for stopping by. Keep up the great work over there.

    Cheers!

  15. JC,

    Thanks so much. You’re doing a great job over there as well, with your consistently-high income and savings rate. I know you’ll eventually surpass me, so I’m just doing as much as I can now to stay ahead. πŸ™‚

    Keep it up!

    Best wishes.

  16. Geblin,

    That’s fantastic! Sounds like you’re killing it over there. πŸ™‚

    It’s wonderful to know that, no matter what happens, we’ll always have a roof over our heads. That immediately alleviates a lot of stress!

    Thanks for stopping by.

    Best regards.

  17. Congrats on the record month of dividend income.. September has been my record month also if I count the streams that I do not count in my monthly updates. I sold 2 put options that gave me $130 approximately and a REIT distribution that I do not count because that REIT transaction was for a trade.

  18. Jason,

    If there is one article on your site that people debating on dividend investing should read, it’s this one!

  19. Right on!
    Always nice to have a record breaking month….long may it continue for you Jason.

  20. IP,

    Thanks so much! And congrats to you as well for your record month. It’s wonderful to be a dividend growth investor and be able to consistently break new records as we reach higher and higher. Onward and upward!! πŸ™‚

    Best regards.

  21. John,

    The tangible progress of this strategy simply cannot be debated. Yet I find myself in debates all the time anyway. But I’m happy to know that I’m inspiring many others out there through the process. Makes it all worth it to me. πŸ™‚

    Thanks for dropping by!

    Take care.

  22. Thanks for sharing DM and congratulations on hitting your all time record of passive dividend income. By December you may hit another all time high, and year over year your passive income increases as the snowball works like magic!!! More power DM and thank you for setting as a great example to new investors (like myself) πŸ™‚

  23. Pingback: Sunday thoughts – Dividend Investing | Dividend Road
  24. Success definitely perpetuates itself.

    2013 had around 2.9k dividend and ytd 2014 I just crossed that Mark. Looks like I’ll be somewhere in the ~3.8 range for full 2014 across all stock accounts.

    estimate for 2014 looks to be around 9.5 and I’m going 2015 can bring around 10% income growth between dividends, p2p and rental income.

    Hopefully I can sustain passive income growth of 5-7% for the next decade. Not looking to retire yet, but I like options. I can put up with crap at work knowing I’m not really stuck. πŸ™‚

  25. Great Job Jason! I was at 3066 vs 2256 last year so feel like I’m making real progress. I’ve been buying BP CVX and MCD. XOM is at cheapest price to book and nearly highest divi payout in last 20 years. Time to add, my friend! Cheers, DD

  26. Based on 5.7 for full 2014 plus 5% annual growth plus 15000 invested at 3.5% blended rate, that gets you to 6.5. Clearly the yoy growth is starting to increase its dominance over new investments!

  27. Great month! Truly awesome that you are on pace to crush your goal and reached your highest payout to date. You have to love seeing that year over year change… in the right direction, UP!

  28. Very well done Jason.

    It will be pretty amazing when, in another 10 years if you keep up this saving and investing rate, you’ll be living off the income generated from your investments and you won’t need to work unless you want to. πŸ™‚

    I have the same plan as you know. I hope to post my income update this week.
    Mark

  29. Great job!

    Here I am sitting on $262.37 for the year πŸ™ Although, to be fair I have half my investments in a 401K which does not pay dividends and I only finally switched to dividend paying stocks on 1/3 of my non-401k investments about 2 months ago so I cannot complain too much I guess. Right now 2/3 of my non 401k are in Vanguard funds, they provided most of that $262 since April when I opened the account. You have about a 10-12 year lead in terms of amount saved, I think, so not likely I am ever going to catch-up. Either way great job!

  30. Congrats on the new record month. I was surprised looking through your list of payers not to see any utilities since many paid in Sept, so I looked through your portfolio and didn’t see any at all (assuming the few shares of OGS just came from oneok spin). Just curious if you’ve intentionally avoided them for some reason, or just always found something else you liked better when it came time to buy.

    Sept. was an in between month for me, lower than Aug but higher than Oct will be. 1980 total dividends split something like $1270 from taxable and $710 from 401k

  31. Congratulations Jason, heck of a close to the 3rd quarter! I too hit an all time high for dividends, and while my P2P Lending returns dipped slightly, I still was over the $300 mark of passive income. Pretty awesome to be regularly and steadily seeing the rewards for consistency and hard work. A model for many to follow.

  32. Hows it going DG would you say VOD is still a good buy at the moment or would you go into another direction instead of them.

  33. FFF,

    Thanks for stopping by!

    I’d say your far past the “new” phase, as it looks like you’ve been at this for quite a while. But you’re doing great. Just keep it up! πŸ™‚

    Best regards.

  34. Ravi,

    Looks like success is definitely rearing its wonderful head into your life right now. πŸ™‚

    Keep up the great work there. I think 5-7% organic dividend growth is definitely possible over the long haul, and is basically the rate I use for my long-term forecasts. We’ll see how it goes!

    Best wishes.

  35. DD,

    I’d say you’re definitely making real progress! πŸ™‚

    XOM is definitely looking pretty solid here. It’s trading not too far above my own cost basis. I just need a wee bit more capital, as always. πŸ™‚

    Thanks for sharing.

    Cheers!

  36. Ravi,

    “Clearly the yoy growth is starting to increase its dominance over new investments!”

    That’s the critical mass I’m looking for, where the snowball starts to roll itself. Look out below. πŸ™‚

    Cheers.

  37. SAD,

    Thanks so much. Appreciate the support! πŸ™‚

    Onward and upward, indeed. And it looks like you know exactly what that looks/feels like as you’ve been busy buying up stocks as well. Keep it rolling!

    Take care.

  38. Mark,

    Looking forward to seeing your update. I know you’re rocking along over there. Just slow and steady, right? πŸ™‚

    Appreciate the kind words. It’ll truly be wonderful in a decade or so when the passive income is rolling in so heavy that work is completely optional. That’s life-changing.

    Hope you had a great weekend.

    Best wishes!

  39. dumbvestor,

    Hey, we all have to start somewhere. The key is actually starting. You’ll never be relaxing under the shade of a giant tree 20 years from now if you don’t plant the seeds today. You can see just a few years ago I was earning the same type of dividend income. Just gotta stick with it, my friend. πŸ™‚

    Best regards.

  40. Ha! Great picture. I am curious – with the recent market downturns did you buy any more than usual? I know some people have no problem buying when the markets temporarily go down while others prefer to wait it out on the sidelines. I jumped in and if they keep going down I will continue to buy

  41. pacer45,

    Well, Avista paid this month. They’re a utility.

    In general, I’ve largely avoided utilities. There is limited growth to be had there, as there’s a lid on their potential growth through heavy regulation. Furthermore, I envision a future where more and more people leave the grid, creating even further issues and expenses maintaining old infrastructure. And they have high capital expenditures due to their nature, routinely leading to negative or low FCF. The high yields that some of them exhibit offer a little something to like for income today, but even that is sorely lacking across the board as many of them have been very strong performers over the last couple of years.

    That’s a fantastic month right there. That could buy me financial independence! πŸ™‚

    Keep up the great work. I hope to catch up to you in a few years or so, but by then you’ll be long gone!!

    Cheers.

  42. W2R,

    Absolutely. It’s wonderful to know the you of yesteryear worked hard to put the you of today in this great spot. Past efforts coming to life today via strong excess cash flow generation is what it’s all about. Keep it up!

    Best regards.

  43. Alex,

    Hmm, tough to say. I’d rather wait to add once we see what the “new” Vodafone looks like without VZW. Their investments in wireline assets across Europe seems to be smart as far as diversification/bundling goes, but it’s hard to see where these investments are going. Their financial statements are all over the place right now because of the VZW sale. I’d rather wait until next year to get a clearer picture on where they’re at and where they’re going. Just my $0.02. I’m actually considering selling my VOD stake for tax loss purposes, which would allow me to repurchase later. We’ll see.

    I hope that helps!

    Cheers.

  44. Hmmmm! Forget the family members. The fact that your dividend investing ways and your focus on becoming financially independent without having to rely on someone else employing you has rubbed off on your significant other is a blessing!! It is so much easier to reach goals when your partner is pulling in the same direction.

    Judging from comments posted by many of your readers, you seem to have a number of dividend investing newbies who follow your progress. I know it can be demoralizing at the beginning of this marathon (and it is a marathon vs a sprint) when the monthly dividend income is negligible. By documenting your progress, I sincerely hope anybody who gets the least bit discouraged gains inspiration by being part of your “Dividend Mantra” community. Carry on inspiring!!!

  45. Henry,

    Thanks so much! I’m really proud of the progress thus far. Just gotta keep going. πŸ™‚

    I don’t anticipate hitting $1,000 in one month anytime next year, but I think 2016 is a distinct possibility.

    Keep up the great work over there.

    Take care!

  46. Dan,

    Thanks! I love that picture as well. πŸ™‚

    I was quite busy over the latter part of last week. ARCP was one of my purchases. I also averaged down on BBL, which I’ll be discussing more in-depth over the coming days. That’s pretty heavy for me, especially considering we’re still early in the month. I don’t worry about timing the market. I just look for attractively valued businesses and buy when I have capital available and room for the purchase in my portfolio.

    Best regards!

  47. Nicely done. Keep the snowball rolling. I’m waiting for the day when the effect of dividend raises and reinvested dividends are is greater than that of adding fresh capital. At that point it will fill like the portfolio is driving itself.

    The $2.00 from Visa is just plain awesome.

  48. That’s cool. How would one choose which stocks to invest in when one desires a 25K annual income from dividends? And how much would one need?

  49. Dividends are great. My net worth for September was totally flat, since the market went down. But, looking at the dividends coming steadily in, and the amount of income slowly rising no matter what the market is doing, really helps to keep things in perspective.

    It’s a long game. A bad month barely registers.

  50. Jake,

    That point of critical mass is what I’m really after, and it’ll be extremely exciting to see the snowball turn into an unstoppable avalanche. I think $10,000/year in dividend income starts to get you past that threshold.

    Cheers!

  51. andru,

    How much you’d have to invest to receive $25k/year would really depend on what kind of yield your portfolio generates. Assuming a 3.5% yield (which is fairly conservative) means you’d need about $715,000 invested. Scaling that up to 4% brings the invested asset base down to $625,000.

    As far as selecting stocks from the start, I wrote a post on starting out here:

    https://www.dividendmantra.com/2014/05/if-i-were-starting-all-over-again/

    I hope that helps. πŸ™‚

    Best regards.

  52. Justin,

    It’s definitely a long game, and you have to be ready to play it that way. Worrying about daily fluctuations is completely the wrong way to look at it. Sounds like you’ve already figured it out. πŸ™‚

    Take care!

  53. Congrats, Jason!!! Such an exciting time!!! And it really encourages rookie dividend investors like myself to keep at it!!! Power go compounding!!! Thanks!!!

  54. Debs,

    Thanks!

    My ultimate goal is $1,500 per month in dividend income, which is $18,000 per year. I believe that would buy me the financial independence I desire. We’ll see how it goes. πŸ™‚

    Appreciate you stopping by.

    Cheers!

  55. Another fantastic month Jason! September is one of my weakest months for dividend income so I should be looking at adding some that pay out in September to even the dividend income out one of these days.

    What do you think of BP at these prices? I think the stock goes lower from here, but the current price appears quite attractive at the moment although there are certainly many risks to consider. Oil/gas stocks have been hammered pretty badly over the last while.

  56. DIR,

    Thanks so much!

    I’m so glad you find this motivating and encouraging. I started out not that long ago myself, so if I can do it then so can you. Stick with it. πŸ™‚

    Best regards.

  57. Winston,

    I think BP is cheap here, but the risks are considerable. Not only do you have the ongoing litigation, but the Russian risks are also substantial, in my view. Even if they end up getting popped for a full $18 billion they’ll kick that can down the road for years. And it’s not like they can’t afford it. But I view any Russian setbacks as potentially more problematic since they own ~20% of Rosneft. The risk/reward proposition with this one is a bit aggressive, but I’m happy to hold here.

    Cheers.

  58. you weren’t kidding when you said you were excited to post September’s Dividend Income. Awesome Numbers Jason, its amazing to see all that patience and hard work pay off! I really do enjoy watching your journey, and I’m proud to say we are in the same community. As you said in your post success begets success and you are living proof. Thank you for always continuing to motivate many people Jason!

    Ace

  59. nice job mantra. My September haul is not quite $700; more like $426 and some change…. It feels pretty good though. mar-jun-sep-dec are the blockbuster months for me, along with feb-may-aug-nov. The other months are kinda dry… but no real complaints.. I make a little over $100 during those months..

    It’s funny; I remember getting one of my first dividend checks from VZ years ago for $6.31. It didn’t feel like much, but I knew it could buy me a burger combo at Mc Donald’s! But I saw the power of compounding via dripping and re-investing the dividends, so this November, with the recent dividend increase, I expect to receive just under $300 from VZ. Wow. That’s a lot of burger combos!!

    I feel giddy just thinking about it! It’s almost like your birthday every month when these checks come rolling in! I totally get it now, the whole snowball analogy…. and as you say the proof is in the “monthly pudding”! Keep up the inspiration Mantra, I can’t wait to read your post when your mar-jun-sep-dec dividend income breaks $1000!!

    jm

  60. As you say, dividends are cash money and that’s how we live in the real world. No other way you can explain dividends other than receiving cold hard cash. It can’t be faked. Period. And with compounding, dividend increases and new capital invested we are all creating an ever increasing passive income stream. Congrats on a monster month. As always, I look forward to your next updates as we all march on our own dividend journeys. Thanks for sharing.

  61. Your blogg is helping me keeping the course straight! Thanks!

    I actually look forward to a bear market.

    That will be the ultimate test of the strategy and it will be very interesting to watch the decisions you make during such a period. It might scare many people away from investing but I am 100% sure it will not have that effect on you.

  62. Congrats on that dividend income, DM. You are doing great and covering nearly 40% of your expenses is pretty freakin awesome!

    Keep it up
    R2R

  63. I feel like the biggest expense for most people is housing. Whether it be rent or mortgage, you soon can generate enough dividends to cover a typical housing expense. How much is your housing expense per month?

    That would be pretty cool to say one day. “I’m not worried about my mortgage or rent, the dividends pay for it.” I hope to achieve this by 35. I haven’t started a dividend portfolio yet, but I think I’m going to start soon.

  64. Hi Jason

    Great comment once more. Interestingly I made a very similar comment to you about hoping that new starters to the income investing can get motivation to persevere with their strategy even when they are not seeing a massive income in the first few years. To know that I have gone from zero to over Β£1,000 ($1,600) in three years in one of my accounts, with payments in over this period averaging less than Β£500 per month is really motivating me to continue adding cash as fast as I can to really accelerate the income payments (and to re-invest the income to compound the benefit).

    To see people like yourself and a few others getting to a level of passive income that is covering quite a chunk of your costs should really demonstrate where people can get to if they are disciplined about adding cash and re-investing. I am currently receiving around 25% of the amount I believe myself and my wife need to live reasonably in a lifestyle that is independent from the need to be a wage slave, and this should further increase over the next few years. With a fair wind I “may” achieve FI in the next two to three years as I have other investments over and above the ones I report on my blog.

    Best Wishes
    FI UK

  65. Impressive! Setting an all-time record for dividend income must feel amazing every time you do it. Knowing that that much more of your expenses are covered without you having to work for them must be a massive weight off of your shoulders. Although I’m nowhere that in terms of annual dividend income, I already feel so much better knowing that most of my minor bills are taken care of with no real effort in my end. I can only imagine how covering 30% of your expenses must feel!

  66. DM,

    Compounding at its finest. Pretty beast year so far. Keep it up.

    – Gremlin

  67. I generally agree with those long term risks for energy based utilities, but what about water/sewer?

  68. … though a better play may be water tech or makers of water equipment, as they’ll have broader reach and won’t have as much geographic risk. I need to look into this sector more to figure out how to capitalize on the trends for the next 10 years. Water seems to be an issue all around the world. Ideally a play on desalination, hydro, maybe something else too.

  69. Ace,

    Thanks so much. Very kind of you.

    I’m also incredibly proud to be a part of this community. I’ve seen it grow leaps and bounds since I first started, and I think that speaks well to the robustness of this strategy and people’s desire to escape the rat race. I’m happy to help spread the word. πŸ™‚

    Appreciate you stopping by!

    Best regards.

  70. jm,

    It’s amazing how a trickle of pennies turns into a large sum of dollars over time. πŸ™‚

    Sounds like you’ve been at it a while and you’re now seeing that success firsthand. Keep up the great work!!

    Thanks for the support. It feels great to see the snowball accelerating now.

    Take care.

  71. Sensim,

    It’ll definitely be interesting to see how some of us respond to the next major correction. If we get a major pullback – over 20% – I might have to look into another job or something to raise extra capital to buy up stocks. πŸ™‚

    I’m happy that the blog and the journey is keeping you motivated. Freedom is indeed attainable. Just gotta stick with it.

    Best wishes.

  72. R2R,

    Thanks so much. It was a wonderful month. They’re not all this great, but I’ll take them when I can get them. πŸ™‚

    Keep up the great work over on your end as well.

    Best regards.

  73. Congratulations! I think you are displaying something that is in very short supply these days, and that is discipline. I am curious as to whether you are reinvesting the dividends or just taking the cash for living expenses. Also, while I respect your preference for individual stocks, are you averse to dividend/income mutual funds ( my personal preference) and if so why? Thanks!

  74. Steve,

    My housing expenses are $462.50 per month plus utilities. I usually spend somewhere around $530/month after factoring in electricity, water, and trash. My girlfriend and I rent a smallish two bedroom apartment in Florida. So what you see is my half. She covers her half as well.

    I’m not quite to the point where housing is completely covered (including utilities), but it’s getting close now. It’s a wonderful feeling to know that, no matter what, you’ll always a roof over your head. That eliminates a lot of stress. πŸ™‚

    Best of luck starting your portfolio. They key is to start; it gets a lot easier from there.

    Cheers!

  75. FI UK,

    Absolutely. I think what these reports demonstrate most is the ability for pretty much anyone to build a sizable passive income stream in a relatively short period of time. Financial independence is out there. You just have to put the effort in to reach out and grab it!

    Congrats on your success. Sounds like you’re not far away now. Stay consistent and I’m confident you’ll be there even quicker than you might suspect. πŸ™‚

    Best wishes.

  76. DD,

    It’s a big stress reliever to know that you’re already ahead of the game as soon as the month starts. When you know a substantial portion of your bills are already paid for that means you’re already kind of in a “no lose” scenario. It feels great! πŸ™‚

    You might not be here yet, but I’m sure by the time you’re my age you’ll be far ahead of where I’m at. I can only wish I would have started even earlier, but I’m doing my best to make up for lost ground!

    Thanks for stopping by.

    Best wishes!

  77. Gremlin,

    Thanks! Compounding is a beautiful thing. πŸ™‚

    I’m excited to finish out 2014 on a big note and start 2015 off on the right foot. We’ll see how it goes!

    Take care.

  78. Ravi,

    There’s a couple of high-quality water utilities here in the US, but their overall metrics aren’t super impressive. Of course, there’s nothing wrong with slow and steady. But, again, there’s regulation there.

    I know GE is pretty heavy into water desalination. Emerson Electric has Ovation. So there are some options out there. πŸ™‚

    Best regards.

  79. wtd7576,

    Thanks so much. I’m proud of my discipline so far, as it’s not easy to stick with something day in and day out for years on end. But consistency is incredibly important with this strategy.

    I currently reinvest all dividends, albeit selectively (rather than DRIP):

    https://www.dividendmantra.com/2014/03/selective-dividend-reinvestment-vs-drip/

    As far as funds go, I’m not really a fan for a number of reasons:

    https://www.dividendmantra.com/2013/04/why-i-vastly-prefer-dividend-growth/

    Thanks for stopping by!

    Cheers.

  80. $745.76, holy cow! I hate to break it to you, buddy, but with numbers like these you’ll be FI much sooner than 40 years old!

    Not all months are as good as September, but it’s incredibly encouraging to see that chunk of cash. Just keep on trucking and numbers like these will become more common.

  81. Wow what an awesome month you had. Unlike you our Sept dividend income is a bit lower than usual but still pretty good. So glad to see your update and tracking your progress.

  82. September was mixed for me. MO is rocking as usual which is 80% of my portfolio. I initiated BP at $46 which has lost 3$ per share but I’m not too worried as this is a solid long term dividend payer. With asset value at about $70 per share BP is undervalued.

    The downside was I had a small CCTM investment which has lost 50% of its value last month alone. Take a look at it, it is now yielding 12%. It has lots of cash but it is a Russian company and Russia is passing a bill that only 20% of media companies can be foreign owned. Will be interesting how it turns out, the risk to reward is getting very interesting I may add some more as the P/E keeps dropping.

  83. great number of income! Sorry about my English, IΒ΄m from Germany and try to improve my English also with reading you’re site. How better I can learn with interesting sites πŸ˜‰
    September was good for me. I have a Portfolio with 70% (nearly same amount of Euro) on long Term shares:
    Apple
    BB Biotech (Swiss Biotech “ETF”)
    iShares Europe Telecommunications
    iShares Global Select Dividend 100
    SPDR Emerging Markets Dividend UCITS ETF
    iShares Asia Pacific Dividend
    McDonalds
    iShares Global Clean Energy

    The rest (30%) is for mid Term Trading. I earn round about 5000€ in the last Years, but with a lot of “Timeinvesting”. Above Long Investing Depot makes a lot more with much less Energy^^

    Well let me come back to you Question: “How was your September? Was it outstanding?”
    It was good for me, 200$ Dividends after Tax (26,375% on each $/€ after passing 801€ on Dividends) and 1062$ for a 3 weeks Trade on Telekom Germany (I would say great when it would be always successful to Trade).

    Thanks a lot for your site, for your in-depth insight into your way to financial freedom, and the great community you have.

  84. Spoonman,

    Haha. Let’s both hope you’re right about that! πŸ™‚

    I’m sure you had a fantastic month as well. Keep living the dream, bud.

    Thanks for stopping by!

    Best wishes.

  85. Tawcan,

    Thanks! It was definitely a great month. Not all months are like this, as the graph shows, but they’re great when they come around.

    I know you’re killing it over there. Even an off month for you guys must still be pretty solid. πŸ™‚

    Cheers!

  86. frank,

    You must be a huge shareholder in Altria. I certainly like my position there, but I’m also fearful of where this company might be 10 years from now. As long as they keep paying/raising their dividend I’ll remain a happy fellow shareholder. πŸ™‚

    CTCM is definitely not in my wheelhouse, my friend. I wish you luck with it, however. In my view, Russia has to be one of the most unfriendly places for a Western investor, so I’d rather avoid securities there.

    Cheers!

  87. Bonanza,

    I appreciate you stopping by all the way from Germany. It’s wonderful to have readers from all over the world. And I hope you continue to stop by to improve your English. πŸ™‚

    I hear you on trading and time. I have no ability to time the market or predict what’s going to happen over the short term. I’m much better at making long-term predictions, so that’s where I operate.

    Sounds like you had a great September. I hope you have an equally successful October. πŸ™‚

    Best wishes.

  88. Jose,

    That’s awesome! Pretty serious dividend income right there, my friend. Keep up the great work. I’m sure that total will be much higher next year! πŸ™‚

    Take care.

  89. Hello DM

    Still didn’t found a job (over a month) but I got $49 as dividends and also sold 5 ETF’s because I need a pile of cash for my day to day payments. hope to find a job soon so I can buy again stocks that will pay me more dividends, for FI i need also $1500 per month like you do…. so the way is very very long.

  90. sharon,

    Sorry to hear that, but I’m sure something will pop up for you. πŸ™‚

    The road to financial independence is long and hard, but anything worth having in life is worth working hard for. You’ll get there. Keep your head and up and keep working!

    Best regards.

  91. Just found this wonderful site. I’ve got the Vanguard Div Growth index fund, so I guess I’m off to a good start. Question: are you investing in taxable accounts or is all this in your retirement accounts? Thanks! – Dave

  92. Allan,

    Thanks so much for the continued support. You’ve been really kind to me. Much appreciated!

    I know you’re doing really well over there as well. Just gotta keep it up. There’s definitely light at the end of the tunnel, and it’s getting brighter every single day. πŸ™‚

    Cheers.

  93. Congrats on a blockbuster month! That is awesome. Can you share with us your metric(s) you use to develop your annual dividend goals? My current dividend goal is $1200 for the year similar to your 2011 goal for my tax account, which I am on target to meet. However, I am contemplating a realistic, but stretch dividend goal for next year.

  94. I love September for its dividend income. Other months that I love for it are October, November, December, January, February, March, April, May, June, July and August πŸ™‚

    Great stuff you have there Jason. Congrats with the new milestone on your path to FI. Keep on inspiring…

  95. Paperboy,

    Thank you! The next couple of months won’t be anywhere near this, but it’s wonderful to hit these kinds of numbers when I can. πŸ™‚

    That’s a great goal there of $1,200. I still remember just barely passing that goal with a big December that year. Fun times!

    As far as setting my goal, what I do is tally up what my dividend income is expected to be over the next 12 months. I then add in 6% growth to account for dividend raises. Finally, I try to anticipate how much capital I might be able to invest and assume an average 3.5% (my running average) portfolio yield. It’s all an approximation, of course.

    I set my goal a little low this year because I kind of had this idea in mind about possibly leaving the auto industry, so I wanted to allow myself a little latitude in regards to how much capital I was going to save and invest. Luckily, it all worked out.

    I hope that helps!

    Cheers.

  96. Jos,

    Haha. I’m totally with you. Every day I wake up to dividend income is a good day in my book! πŸ™‚

    Appreciate the kind words. I’m happy to be in a position to share this wonderful journey and inspire others out there to embark on their own great journey to freedom.

    Thanks for stopping by!

    Best regards.

  97. PIM,

    I’m trying to turn that snowball into an avalanche! πŸ™‚

    Appreciate the support. You’re doing great over on your end as well. Keep it rolling.

    Take care!

  98. Great to see Jason!

    i left one month of “new portfolio” in septembre and iΒ΄m in the so called phase I till january – to fund my starting ten – after that phase II will follow till end of may to get them full funded and after that month by month i will invest €500-€700 in in new stocks or make my stake even greater – great to see your success! IΒ΄m curious to see how “new portfolio” will play out for me!?

    Let me say – your homepage was the starting signal for me to switch over to dividend investing and to create an portfolio which will cover my costs in the future! very inspiring your work for me! Thank you very much!

    Architritrans aka Alexander

  99. Alexander,

    I’m so happy that you’ve found some inspiration in my journey. I wish you nothing but the best of luck in building up your passive income stream to the point where it covers your expenses. Exciting times are ahead. πŸ™‚

    It sounds like you’re off to a great start there. Keep putting as much capital to work as you possibly can and reinvest those dividends. The snowball will roll…

    Best wishes!

  100. Eric74310,

    Thanks for sharing that! I’m lucky in that I have a great readership. Appreciate you sharing that with me. πŸ™‚

    As it turns out, another reader (who lives in the UK) alerted me to it a while ago. I liked it so much I actually decided to share it via my Media page:

    https://www.dividendmantra.com/media/

    Thanks for the heads-up!

    Best wishes.

  101. Impressive! I just got my third dividend check ever (KO) so I’m still in the very beginning stages, but it’s inspiring to come back here and see these updates. One day I’ll get there too! It’s just so awesome to think that that’s money you don’t have to work for – ever.

  102. What a great looking month. It’s really an inspiration to see these numbers every month. Keep up the good work and success!

  103. theoldmanmase,

    Congrats on your first dividend. How exciting!

    You WILL get there. Just takes consistency. Stick with it and you’ll see your snowball roll downhill at a faster and faster rate. Pennies turn into dollars. And dollars turn into freedom. πŸ™‚

    I hope you stick around!

    Best regards.

  104. Syed,

    Thank you! I appreciate it.

    I’m really glad these reports are inspiring, as that’s exactly what I’m aiming for here. This just shows what’s possible with consistent saving and investing. I’ve never made a lot of money, but here I am. This is truly possible for anyone. πŸ™‚

    Hope you’re having a great week!

    Best wishes.

  105. “The weight just melts off the shoulders when you know you that a substantial portion of your expenses are covered before you even go out in the world and try to make a buck.”

    Oh wow, this made me feel all warm and fuzzy. Nice one and very inspiring.

  106. That’s great Jason. Over $700/month is just outstanding and close to average of $500/month is great. I just crossed $100/month for 3 months in a row and hit $1000 for the year and that itself was a great feeling. Looking forward to hitting these kind of numbers.

  107. DGJ,

    You’re doing great over there. $1,000/year is a big milestone. I hit those numbers not that long ago myself, which just speaks to the type of progress that’s possible with this strategy. You’ll be where I’m at in no time. πŸ™‚

    Cheers!

  108. Jesus Christ, $745 is a bi-weekly paycheck for me! I can only imagine what it would be like having a third paycheck come in from my employer without me doing anything. Enjoy that feeling, Jason! The passive income that you’re making is definitely snowballing, and it’s giving us other investors something to shoot for.

  109. Joey,

    I tell ya, this strategy is just wonderful. These results are tangible. This is cold, hard cash coming in, and that’s why I share these results. Anyone can do this and do even better than I have. You just have to stick with it and keep your eye on the long term. πŸ™‚

    I’m quite confident you’ll be this far and even further along soon enough!

    Best regards.

  110. Jason,

    Congrats on breaking a record! This was a good month for a lot of us dividend investors. Your progress is amazing and I love the fact that your dividend income is so diversified. You’re not loading up on a lot of speculative positions or overloading on REITs; instead this is income from a lot of solid blue-chip companies that you can count on to keep increasing their dividends. Let that snowball keep growing!

  111. Brent,

    Thanks! I really appreciate it, especially coming from someone who is killing it with dividend income. πŸ™‚

    And I also appreciate you noticing the quality of the holdings. I’ve noticed some other investors loading up on spec plays and REITs to boost income, and I just wouldn’t be comfortable with that. I could easily double my dividend income by doing something like that, but I prefer quality, stability, diversification, and growth. Plus, I want to know exactly what I own, and I just can’t always say that with a lot of high-yield spec plays.

    Keep up the great work over there!

    Best wishes.

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