Dividend Income Update – July 2015

moremoneyAnother month has passed by and itโ€™s time for me to post an article on my favorite subject: dividend income. The reason why I love to publish articles updating my dividend income is because itโ€™s pure numbers. Itโ€™s hard to argue the success of long-term dividend growth investing when you can slowly and surely see dividend income rise over time, getting closer to covering oneโ€™s expenses.

Every time I sit down and go over these numbers I’m reminded how fortunate I am to be in this position. I remember flipping pastย late-night infomercials on “creating passive income” and “living out your dreams” back when I was in high school and college. Seemed like a conceptย from another planet at the time. And now here I am actually creating passive income and living out my dreams.

I hope these monthly dividend income reports provide inspiration for any investors out there that are just starting out. Itโ€™s easy to see these payments rising month after month and it shows that itโ€™s possible to one day pay for monthly expenses with dividends, which would provide an investor opportunities and freedom to pursue interests other than full-time work. What youโ€™ll see below is a list of every dividend I collected over the prior month, which company paid the dividend, and the amount of the dividend. Without further ado:

  • The Coca-Cola Co. (KO) – $46.20
  • Baxter International Inc. (BAX) – $31.20
  • Illinois Tool Works Inc. (ITW) – $16.98
  • Philip Morris International Inc. (PM) – $115.00
  • Altria Group Inc. (MO) – $41.60
  • W.P. Carey Inc. (WPC) – $47.70
  • Realty Income Corp. (O) – $13.30
  • Medtronic PLC (MDT) – $14.06
  • Armanino Foods of Distinction Inc. (AMNF) – $14.40
  • General Electric Company (GE) – $39.10
  • Walt Disney Co. (DIS) – $9.90
  • Bank of Nova Scotia (BNS) – $21.08

Total dividends received during the month of July: $410.52.

I guess I didn’t need to call up some 1-800 number from an infomercial after all. I think those programs could be summed up by informing people that they simply need to work hard, live below their means, stick to an intelligent investing strategy that’s proven to work over long periods of time, remain patient, stay consistent, and always be persistent. However, that doesn’t sell.

But that’s why I’m so happy to share everything along the wayย –ย I’m able to provide a real-time look into the journey to financial independence. These are real numbers. Real victories. Real setbacks. And this is real life.

It is indeed possible to generate enough passive income to live your life without the need to work ever again. It’s not just some sexy concept to sell to people that don’t have a chance. It’s real. And I’m proving it every single month with these reports.

Really, really pleased with this past month. Disney recently surprised investors (me included) with a moveย to semi-annual dividends. They’ve been paying annual dividends for about 15 years now, so this was a nice change if only to smooth out the cash flow. So I unexpectedly received a nice dividend from DIS. They also announced a 14.8%ย dividend increase at the same time, which came about a little more than six months after the 33.7% dividend increase the company announced in December 2014. Dividend growth investing at its finest!

However, that good news was offset with the unfavorable change in dividend policy that Baxter announced. After the spin-off of Baxtala Inc. (BXLT), both companies announced their new respective dividends that, in aggregate, added up to significantly less than what the legacy Baxter was paying. Unfortunate, but I’m hoping that dividend growth will in time make up for that. We shall see. I’ll continue holding shares because I really like the combined business models and the Healthcare sectorย is an area of the economyย that I’m angling for more overall exposure to, not less. If dividend growth doesn’t live up to expectations or doesn’t come at all, then I’d have to move on.

All in all, great things here. The dividends this month added up to 30.3% more than what the Freedom Fund generated in July 2014, which is really excellent year-over-year growth. As my dividend income rises, the large YOY changes in percentage terms will naturally fall even while the absolute growth in dollar terms increases.

DividendIncomeUpdate

I was able to cover 23.6% of my personal expenses this month via passive dividend income alone. What an incredible spot to be in. Covering about 1/4 of my expenses even on a month where the dividend income isn’t particularly high is so reassuring. It takes so much stress away when I know that approximately 25 cents of every dollar I spent this last month was paid for before I even attempted to generate income to cover those liabilities.

Meanwhile, I continue to remain aggressive in regards to rolling my snowball down the hill. I’m giving this journey everything I’ve got, day in and day out. The dividends get selectively reinvested fairly quickly, and I’m buying stock hand over fistย in high-quality businesses that reward shareholders with regular and reliably growing dividends. Life is very, very good.

One of my goals this year is to receive $7,200 in dividend income. Sitting now at seven months in, I’ve received $3,815.84 in dividend income this calendar year. That’s 53% of my goal, which is a really solid result. Puts me behind where I want to be, but I’m pretty confident I’ll catch up toward the end of the year.ย Expressed differently, I’ve averaged just over $545 per month in dividends this year. That alone is already covering a good chunk of my expenses, moving me fairly far alongย the spectrum of freedom. Looks like I won’t be calling any 1-800 numbers from any late-night infomercials. And Iย know you don’t need those infomercials, either. We’re too busy making our dreams come true!

I’ll update my Dividend Income page to reflect July’s dividends.

Full Disclosure: Long all aforementioned stocks.

Was July’s dividend income great for you? On pace for your goals this year?ย 

Thanks for reading.

Photo Credit: holohololand/FreeDigitalPhotos.net

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114 Comments

  1. Wow, I was literally just checking on your blog like 5 minutes ago wondering, “hmmm, when is Jason going to post his July dividend update?”, haha! Guess you telepathically read my mind ;P

    Anyway, congrats on yet another fantastic month. 400 bucks is a very, very nice lump of change, especially when you have to put in a staggering 0 hours of work to earn it ๐Ÿ˜€

    I have complete faith that you will reach your target goal of $7200 in dividends this year. Keep it up!

    Peace bro

  2. Hi Jason,

    That PM dividend is huge! Nice job covering 1/4 of your expenses last month. I was glad to see you grabbed some more DIS the other day, I did the same!

  3. great numbers Jason I am 10 years older than you and at least a third behind, that being said you can teach an old dog new tricks and I to will reach FI just not as early of an age as you. Thanks for the Inspiration. What do you think of the run-up in baxalta and bax. I am considering selling because of the smaller dividends and reinvesting where there is belter value

  4. Nice Job, Jason. Sweat and tears do pay off with every month! Anyway, after you did the switch from your employment to your self-employment you already gain the first step of freedom: You are the master of your own time! Nobody can ever lay you off. Nobody will ever fight with you about your working hours. And the best: Dividends help you to do your job without financial pressure in mind. Can’t wait to be there too!

  5. Big Cigarette dividends in that first month of each quarter! 30% YoY increase in dividends is amazing at these levels. I’m hoping to get 20-25% a year for the next five years (I’m only maybe 25% ahead of you in terms of dividend income), so 30% is very solid growth.

    I also like your method of selectively reinvesting rather than DRIP’ing. It also allows for easier bookkeeping.

    Thanks for the update.

    Eric

  6. Dividend Mantra,

    Congrats on the dividend income. Your dividend income almost always going in the right direction which is up quarter over quarter. By picking quality dividend stocks on a consistent basis at attractive prices, the dividend is less likely to be cut.

    Are you still eyeing UNP and CNI (CNR for Canadians) for more railway investments? I know you own UNP but were looking to pick up more shares a month or so ago.

  7. Superb job DM!! Over $400, covering 25% of expenses is awesome! I think you’ll be well ahead of your goal come December. At 25% of expenses, that means you did one of heck of a job controlling your purchases.. $1600 is pretty great! My wife and I are trying to only spend $800 on food, internet and other things this month. Man is it tough, especially when a $400 car fix gets thrown in there. Now there is less wiggle room should something else arise but if we can stay below $800 that would put us in a fantastic place to adding twice as much capital to investments than anticipated… just trying to catch up to you! haha

    We put up an 80% YoY increase (which you already commented on, thank you for that!) and like I said above, we are continuing to push hard!! Thanks for the motivation! Gotta love the new DIS payout and I was honestly surprised I didnt see the KRFT dividend up there. Could have sworn you would have been a shareholder of that nice blue chip.

    Anyways, great job!! Keep up the great work

    ADD

  8. Hey Jason,

    Great sum of cash free of work! I’m only on my 4th month receiving dividends, but I can already see what an amazing feelibg this is. I can only imagine how great it would be to cover almost 25% of my expenses. And then imagine 50%…or 75%! I can’t wait till that time comes, and I’m sure it won’t take very long at all for you.

    As for the Baxter dividend cut, I’ve sold all my shares, as I don’t think the low yield fits in my current portfolio – being in the accumulation phase, I should be focussing on relatively high yielding stocks (in the 3-6% range). I’ve used the cash to buy some P&G instead ๐Ÿ™‚

    Cheers for sharing mate.

    Dividend Legion

  9. Hey Jason,

    I decided to stop and get a drink at McDonald’s and noticed your post. You are doing quite well, and I am looking forward to reading about you reaching your goal for the year. Good luck.

    This summer has, and is kicking my butt! I hope to get some time to post some of my results, but in the meantime, I am enjoying reading about your progress.

    Keep cranking,

    Robert the DividendDreamer
    AKA — Seeking Dividends

  10. Great job Jason

    I did only half income then you ๐Ÿ™‚ due to KRFT dividend, but I have a setback – don’t have day job for 2 months already..

    Keep the snowball rolling

  11. Alex,

    Ha! I’ve got your back. ๐Ÿ™‚

    It’ll be tough down the stretch, but I’m giving it my all. A little behind, even with the aggressive purchases, but I knew it was a tough goal from the get-go. But what’s great about this year is that I’m pretty far ahead of pace. So even if I miss my goal of $7,200, I’m still ahead of where I planned/wanted to be. Still putting in maximum effort, though.

    Thanks for the support. Hope you had a great weekend over there!

    Best regards.

  12. Sampo,

    Yeah, PM really carries a lot of weight there. Hoping for a nice dividend increase from them in about a month. Looking forward to that. ๐Ÿ™‚

    DIS is now a full position in the portfolio, which I’m really happy about. Just a really fantastic company. Wouldn’t mind boosting that even more if the stock becomes markedly cheaper here.

    Thanks for dropping by!

    Cheers.

  13. FV,

    Absolutely. It’s really powerful when you compare the dividend income to expenses using real numbers. Reminds me of the “wall chart” from Your Money or Your Life. Seeing that passive income rise against expenses is one of the best things about this strategy due to the tangibility. ๐Ÿ™‚

    Take care!

  14. Ken,

    Thanks for the support. I’m so happy to inspire and share. It’s an honor to be in this position. ๐Ÿ™‚

    I’m going to keep BAX and BXLT for now, like I outlined in the article. But if the dividend growth doesn’t materialize, then I’ll move on at that point. Still a great business and I still love having that exposure there. I’m pretty patient, but I’m not going to give them forever to make up ground. We’ll see. But selling might make sense for some people. Just really depends on your capital availability and what other opportunities you see out there.

    Stay in touch!

    Best regards.

  15. DM,

    Over $400 in dividends in July alone. That is fantastic, especially given the fact that July is supposed to be one of your milder months. I hope to one day get to your level but I know that I have a long road ahead.

    DC

  16. BM,

    Thanks so much!

    Really, really fortunate to be here. And you nailed it there about the sweat and tears. Hard work does indeed pay off. ๐Ÿ™‚

    You’ll surely be here one day as well if you stick with it. This strategy is wonderful because it’s repeatable. Live below your means, invest intelligently, and reinvest the dividends. Rinse, repeat, become free. Keep it up!

    Best regards.

  17. Eric,

    Early investments in Big Tobacco have paid off pretty well for me. Paying dividends, literally. Looking forward to seeing those payouts compound for a while longer. ๐Ÿ™‚

    20% to 25% YOY growth coming off of a big base is pretty impressive. You’ll probably get 7% or so just from the dividend growth, but the rest of that spread becomes harder and harder as the numbers grow. Keep at it!

    Thanks for dropping by.

    Best wishes.

  18. IP,

    Yeah, I love the juxtaposition between dividend income and the portfolio value. The value of the Freedom Fund can oscillate wildly here and there, especially with no new capital input. But the dividend income just continues to relentlessly rise. That’s why I really like posting those dividend growth updates. ๐Ÿ™‚

    As far as rail goes, I’m likely going to add one more tranche of UNP here at some point in the near future. I’ll have to take a look at CNI after I’m done building out UNP. I’ll also have to keep an eye on total railroad exposure. Love the industry, but I don’t want it to become an overwhelming piece of the portfolio. I think rail is a bit under 5% right now, and that’s probably a pretty good number to stick with over the long haul.

    Thanks for dropping by!

    Cheers.

  19. ADD,

    We’ll see where the chips fall on the dividend goal. I’m going to continue giving it my all. ๐Ÿ™‚

    I hear you there on the car repair. I remember when I first started tracking my expenses, I would notice these one-time expenses in the “Everything Else” category pop up pretty much every month. At first, I kind of ignored that and figured they’d go away after a few months. Here I am now more than five years into it and I can see they never really go away. Always unexpected expenses to deal with, unfortunately.

    An 80% YOY increase is awesome. I’m unlikely to see numbers like that anymore, but I’d gladly take the bigger absolute gains over the relative percentage gains. That’s a sign the snowball is really moving, and you guys are definitely rolling in the right direction.

    Best wishes.

  20. DL,

    Man, you’re in a really great and exciting spot there four months in. I remember how eye-opening all of this was back then. I just knew I was sniffing out something really incredible and life changing. And here we are a few years down the road with a life that is completely and totally changed. I think you’ll find the same. ๐Ÿ™‚

    I hear you there on Baxter. It’s really unfortunate that they cut the dividend like that. Still a great company, so I’ll continue to see where it goes. But I’m hoping the next dividend increase starts to make up for that right off the bat. We’ll see. I’m patient. But selling makes sense as well. Gets rid of a stock that now yields quite a bit less, frees up some capital for something that can give more income, and also unlocks some gains.

    Thanks for dropping by!

    Cheers.

  21. Robert,

    As a shareholder, I appreciate the business there at McDonald’s. ๐Ÿ™‚

    Sounds like you’re having a great summer. Not having enough time to post updates on the blog because you’re enjoying summer means life is good. Enjoy!

    Best regards.

  22. 53% towards your target is pretty good going, Jason! I am glad to hear that you think you’re still on target! I am sitting at about 57% of my (revised) target which I am pretty happy with.

    Keep up the good work!

  23. That’s great! Congrats on your progress. How long have you been investing, how much do you contribute monthly, and what is the total value of the portfolio?

  24. Love seeing many solid names paying in you July especially when we have quite a few overlapping names. But I guess that’s the nature of the dividend beast. Quality companies will show up in multiple portfolios. I don’t doubt you’ll hit your dividend goal for 2015. Things always ramp up with those final big September and December distributions. Keep on the path!

  25. Definitely a solid July. And it’s nice to see DIS make the move to semi-annual payouts. A single annual dividend was a bit too long to wait for my tastes. I may have to add that to my ever growing watch list.

    Sincerely,
    ARB–Angry Retail Banker

  26. Just keep plugging away and you will reach your goals. I’ve ended up going past my goals so many times it’s time to start spending. Just passed the $3300 a month goal a while back.

  27. Mantra,

    Looks like you and I both have a nice/sizable dividend from PM coming in quarterly ($81 for me) – I like the cash cow we have there. Also – it’s always funny to see some big news/highlights such as Disney offset by not the “best” news in Baxter. I don’t own Baxter, but I’m pulling for you.

    Also – I am sure your September & December quarter ends are going to bring you to the promised goal land, no doubt. I stole a page out of your and Bert’s book, by the way, and invested into Emerson. I just couldn’t beat the metrics I was seeing and decided to pull the trigger.

    Congrats on the month mantra, great job, again!

    -Lanny

  28. Sharon,

    Man, sorry to hear about the situation over there with the job. I hope something lines up for you quickly. Keep your head up. I’m confident that good things happen to good people more often than not. ๐Ÿ™‚

    Best regards.

  29. DC,

    Thanks so much. It’s been a great year thus far. I have no regrets whatsoever. ๐Ÿ™‚

    The great thing about this strategy is that new milestones are hit all the time. So you’ll be breaking through new milestones all the time, eventually hitting this level before moving beyond it. Keep at it and you’ll be really surprised with what’s possible.

    Take care!

  30. TDD,

    It’s definitely going to be tough, but I’m about as good as anyone in regards to putting in maximum effort. If I miss it, it won’t be for lack of trying. ๐Ÿ™‚

    57% of your goal is great pace. That’s pretty much right on target, even without the push you’ll likely get toward the end of the year as you get a little compounding kick near the end. Nice work!

    It’ll be exciting to see many of us in the community wind our years down and see where we stand. A lot to look forward to.

    Thanks for dropping by.

    Cheers!

  31. Keith,

    Quality companies is where it’s at. I could double my immediate dividend income by dipping my toes in the low-quality pool, but I’d rather not resort to keeping my fingers crossed when it comes time to collect growing dividends.

    Yeah, I’m pretty confident I’ll hit the goal. Definitely going to require every ounce of effort, but I know of nothing less. ๐Ÿ™‚

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

    Best wishes.

  32. ARB,

    That’s funny that so many people didn’t like the annual dividend. It was something that I didn’t really care for, either, until I realized that you’re not actually waiting at all. You’re just receiving your dividend early and all at once. It’d be like your employer giving you your entire salary all in January rather than spreading it out over the year. But some investors like their dividend income smoothed out, even if it’s to their detriment. The nice news, though, was that this move meant an extra dividend this year plus the boost. All in all, VERY good things. ๐Ÿ™‚

    Thanks for dropping by!

    Cheers.

  33. Thanks for inspiring many of us including myself Jason. Always great to see these awesome reports. I happy for you and your amazing story. Let’s keep hustling it up to greater friggin heights. Thanks for sharing my friend.

  34. Brian5000,

    Wow, that’s really impressive. $3,300 per month! I honestly (I’m not exaggerating here) don’t even know what I’d do with that much passive income. But I’d sure love to have that problem! ๐Ÿ™‚

    I’d definitely say it’s time to start spending over there. That’s a rather large chunk of change coming in every month before even lifting a finger. Enjoy the fruits of your labor.

    Thanks for sharing!

    Best regards.

  35. Interesting what people are deciding to do with their shares after the Baxter spinoff. It seems like half the bloggers I’ve seen have sold their shares and the other half is holding on. I imagine much of that depends on your time horizon and if you have time to wait for the growth to kick in or not.

    I can’t wait till my dividends can cover nearly 24% of my expenses like you are at. For July I was able to cover a bit over 11% of my expenses but I am finishing remodeling my bathroom so my expenses were a bit higher than normal and my dividend income was a bit lower this month. Next month looks to be a much better number for me with less expenses and a higher dividend total as well.

    CD

  36. Lanny,

    Glad to have you on board there with Emerson. Not the greatest growth in the world over the last few years or so, but the dividend growth track record can hang with the best of them. And I see no reason why that won’t continue. In addition, I really like the spin-off idea. We’ll see how that one goes.

    Appreciate all the support, bud. You guys are doing great over there as well with the savings and regular investing. It’s really a treat to be a part of this community where everyone is out there striving to make their dreams come true. In the process, we all mutually inspire each other towards our individual aspirations. It’s a great thing.

    Best wishes!

  37. Tyler,

    Bigger and better things coming for sure. Every day is a new opportunity to reach that much higher, and that’s exactly what I set out to do every time I roll out of bed. ๐Ÿ™‚

    Thanks for stopping by. Let’s keep it rolling!

    Cheers.

  38. CD,

    Yeah, I’m taking a very passive approach when it comes to selling from here on out. That was something I mentioned late last year. I’ve assembled such a great collection of businesses here and I’m probably better off just sitting on my hands and letting them continue to rake in the cash. Unfavorable change with BAX/BXLT, but I have plenty of time to see how it turns out. If I were, say, 30 or 40 years older, I’d probably be a lot more anxious about it. But I once read that a portfolio is like a bar of soap in that the more you handle it, the less of it you’ll have in the end. Unless there’s a major problem going on, I’m likely to just keep holding on to shares.

    I hear you there on the temporary expenses. I’m probably going to have some dental work done this month, so that’ll skew the numbers a little bit. But as long as the overall trend is moving in the right direction, that’s what matters most.

    Thanks for dropping by!

    Cheers.

  39. Nice dividends of $over 400, DM! and it is covering almost 25%. It means you are free one-quarter of total time and not far from total FI. Keeping racing like this!

  40. For me, I just didn’t care much to wait that long for an individual dividend. I think a lot of people prefer the predictability and reliability of regular payments. Helps them budget and helps them save. I wonder how some people would act if their employer actually paid them annually like that. “Great year you had. Here’s $50,000! Next paycheck is next year”. I bet a lot of money would find themselves depleted of funds after three months. That’s just the way most people are.

  41. Congrats on the dividend income, DM. Thats a pretty great achievement that you are covering a good amount of your expenses. 53% of your annual goal is a great achievement – hopefully you will be able to achieve your goal this year.

    Best wishes
    R2R

  42. R2R,

    Absolutely. I like to think of freedom in percentage terms like that, which is something I write a lot about. It’s definitely not a binary concept where you’re either completely free or completely not free. Being 25% or 50% free is a lot better than being 0% free, that’s for sure. ๐Ÿ™‚

    Thanks for dropping by!

    Best regards.

  43. ARB,

    “That’s just the way most people are.”

    Definitely. But we’re not most people. ๐Ÿ™‚

    Those who know the time value of money know that collecting your $50k in advance in January is much, much better than getting the money dispersed throughout the year. Same goes for an annual dividend, but that also depends on when you invested. Invest the day after the ex-dividend date and you miss out there.

    I think the semi-annual dividend is nice for spreading out the cash flow, but the annual dividend doesn’t bother me since I realized that I’m better off collecting the money upfront.

    Cheers!

  44. R2R,

    Thanks so much. I know for sure I’m giving it my all. It’ll be another year where it comes down to the wire. Should be fun! ๐Ÿ™‚

    Appreciate all the support. We’re all doing great things as a community.

    Best regards.

  45. I think you’ll get to your goal! Still have 5 months left plus all those new capital contributions which will start paying dividends to your account. Good luck!

  46. Congratulations on your monthly dividends. I think you will achieve your targets this year! No doubts about it – especially with your investments the last few months.
    D4s

  47. FF,

    Appreciate it! ๐Ÿ™‚

    I think I’ve got a really good shot at it. The next few months are going to have limited effect, however, on my dividend income goal just due to the fact that the remaining dividend payments for the rest of the year are somewhat limited. I think I’ve still got a good month or two to affect things a bit, but that effect will dwindle as we wear on into the fourth quarter. We’ll see, though. Giving it my all.

    Thanks so much for stopping by. Hope 2015 is treating you just as well over there!

    Best wishes.

  48. congratulations on your dividend income! great to read the progress on you passive income flow. I have a confusion if you can help me understand i’ll very much appreciate it. This might be just silly question but i am trying to learn slowly.I live in canada and i hold a small number of US and Canadian dividend stocks and 1 mutual fund . I would like to purchase some bonds but I am not sure how would I be able to purchase bonds just like i purchase stocks. i don’t know the ticker symbol to find bonds (i know what bonds are and how is it different than stocks. also how Bond price is related with interest rate ..etc. but i have never purchased one. so in order to purchase bond do i look for mutual funds, efts that has high % of bonds holding n simply make a purchase order from my regular brokerage a/c ? is that how bond purchase work. once i make the purchase order how is the duration of bond and maturity date affect my bond price. if you could let me understand how bonds r purchased i ‘ll very much appreciate it. thanks a lot.

  49. D4s,

    Thanks so much. Appreciate it!

    Been a great year. I’m fortunate across the board. But I also realize there’s a lot of climbing left. I’m staying hungry and still climbing that mountain. ๐Ÿ™‚

    Looks like you’re staying really busy over there with the purchases as well. Life is good!

    Cheers.

  50. Dipesh,

    Thanks so much for the kind words.

    You’ve asked questions that are beyond the scope of my ability to really answer all of that in a comment. Moreover, as you can see, I have zero bond exposure. So it would probably behoove you to do a lot more research on bond investing and do so where the information is much more accessible and dense. This just isn’t the place for that, unfortunately.

    Wish you much luck! ๐Ÿ™‚

    Take care.

  51. Jason,

    It’s great to see you keeping it rolling.

    My portfolio is starting to hit critical mass. Dividends in July came from KO, PM, WPC, AMNF and GE and totaled up to $4686.88, and I’ve reinvested every penny of that and then some into fresh purchases. That reinvestment plus the dividend raises is what pushes up the dividend stream growth in excess of 10% a year even without any fresh capital coming into the picture. It is amazingly cool to watch it play out in real time, and it really comes faster than you think. August and September are going to be very strong months, much more than July. It’s like Christmas morning every week these days!

    -Mike

  52. Hello I’ve been thinking about your approach here and admire your continual dedication day in and day out. It takes a lot of discipline to just stick with something and not let anything stand in your way. So it makes for an entertaining experience to see how this plays out for you and I have no doubt you will hit your goal.

    My question is that for me I love the idea of dividend investing, it is easy to understand, and about 75% of my portfolio is made up of such, with another 25% in non-dividend payers.

    Like anything in life you will admit that whatever you do – indexing, dividend growth investing, real estate, whatnot – all have advantages and downsides. And certainly there’s not a one size fits all answer for everyone since we all have different situations and goals. But I guess my question is to you what are the downsides to a 100% dividend growth investing approach.

    My main fear about doing what you are doing full bore essentially revolve around the worry that as interest rates start to rise over the next few years, that investors who were attracted to dividend stocks for yield will be able to find risk free yield in the form of treasuries and such, and so income investors will pull out of these stocks thus leading to a situation where the price of these stocks will decline. Given the fact that dividends are great, but they are even greater when purchased at a steep discount, it would seem to me to be unsafe to be investing 100% in dividend stock now, when in fact, I might lose significant principal which would not be made up by dividend income, even if the fall happens a year or two from now. I have been in the market long enough to have experienced drops of 50% or more.

    Thus the course of action I am more inclined to do now is to let my existing stocks ride, and get new capital 75% or so into cash, while deploying 25% or so in stocks, until the inevitable correction occurs. I realize one cannot particularly time the market, but given all the indicators the likelihood of this happening in the next few years seems to be higher than not. And like in poker, if you play the odds you still might lose the hand, but over time you will win more. than not.

    Anyway, that is my main concern about what you are doing 100%. Wondering if you could elucidate either on this or other potential risks that you feel might be involved in a 100% dividend growth portfolio.

    Thank you.

  53. Mike,

    I’d say that’s a critical mass and then some. Maybe a critical mass to spare in case something happens to your first one. I can see how every morning feels like Christmas morning for you now. ๐Ÿ™‚

    Keep up the great work. And glad to see another AMNF shareholder. That one was flying way under the radar when I scoped it out last year. That little company just keeps on doing the right things. I love it.

    Thanks for dropping by!

    Best regards.

  54. dzogen,

    What you’re proposing (holding cash and waiting for a correction that may or may not occur) is market timing and something that nobody can reliably do. I’ve already discussed that quite a bit across a number of articles.

    The thing is, I don’t care if stocks fall. If you think I’d be disappointed to see the stock market fall by 30% tomorrow morning, you’re sorely mistaken. I not only don’t really care about the prices of the stocks I own after I buy them, but I’m hoping that those I’m interested in actively accumulating actually fall a bit after I buy so that I can buy more (shares and yield) down the road for less money. And those stocks I’m not still actively accumulating do right by me when they drop in price because it makes any outstanding share buyback programs more effective over the long run.

    There’s always going to be a reason why stocks may/might/could/should/would fall. Your commentary proposes rising rates. It was the Grexit not long ago. At one point, it was the fiscal cliff. Next year it’ll be something else. I think about macroeconomics exactly zero times on zero days over zero years.

    I’ll continue dollar cost averaging my way into the market through the ups and the downs, choosing high-quality dividend growth stocks that are attractively valued at the time of purchase. If stocks in aggregate drop by a significant amount at some point in the near future, my limited capital would go that much further. But, like I’ve discussed quite a bit recently, many individual stocks have already corrected rather substantially lately.

    No offense, but I feel like I’m repeating myself here. You could easily have pulled up the answer to your question in the content.

    That all said, everyone needs to figure out their own comfort level with asset allocation. I actually think there are a lot of people that invest in stocks that probably shouldn’t, or shouldn’t be as heavily exposed. The next correction will surely be a good test for some of these people. We’ll see.

    Thanks for dropping by!

    Cheers.

  55. Hi DM,
    Great effort over in the US!
    I have achieved the milestone of equalling last years dividend income – all dividends for the rest of the year represent a pay increase – fantastic.
    I agree – many of my holdings have dropped recently, and my portfolio has dropped around 10% in value – you know what – I don’t care, im not selling my income stream.
    I compare the fluctuations of the market to the main asset most people own – their home. If someone was constantly giving you a valuation on your home you wouldn’t suddenly panic and sell it just because they told you it had dropped in value, where would you and the family live? its an absurd concept – so why would you sell your income stream because someone says its less valuable – I have only experienced 1 dividend freeze and that was when I sold as that represented a warning to me, not the noise of the market – keep up the good work.

  56. Well done as usual.

    I feel confident you will reach the $7,200 passive income before Christmas Day. You are buying as if this year was the last one to purchase shares, hahaha. You have money to invest and you don’t waste your time. Keeping buying.

    Congratulations Jason for your +30’3% YoY growth!

    Till next post.

  57. A hat tip over to you Jason for mentioning AMNF. I did some DD on that last year and ended up initiating a position at $1.98 and $1.99- it hasn’t taken a breather since. Looking forward to see what the dividend raise is on this little gem. I may have to average up on this one day.

    Keep up the great work, and let’s hope for a little bit of volatility with Mr. Market

    Mike

  58. To build on Jason’s comment, why bother with trying to time the market when you don’t have to by simply following a plan. You may think you are not hitting a home run, but seeing the singles come in regularly makes runs more effectively than a go for broke strategy. After 5-10 years you’ve got the strategy running well in your favor, and you are building cash flow all the while each year. The annual growth of the dividends is really what sets this apart from bond investing or rental income.

    It took me many years to come around and realize how simple and effective this strategy is. I wish I “got it” 15 years ago, but on the other hand I’m grateful it didn’t take me another 15 years to get it.

    -Mike

  59. Great job! Love the growing monthly cash flow!

    Our July dividends were solid because it’s quarter end when our ETFs and funds spit out quarterly div payments. $2600 or so I think. Which means we’re in a dry spell for dividends for August and most of September until Q3 divs show up at the doorstep the last week of September and first of October. We have Christmas 4x a year in our house. ๐Ÿ™‚

  60. Hi Jason,

    I have been reading your blog the past 4 months and first would like to say that I am truly impressed with what you are accomplishingโ€ฆ..both in your life and financially. I am 54, grew up poor and often hungry, and because of family difficulties, was only able to complete the 9th grade. I went on later to earn my GED, 2 Associate degrees, and my Bachelor of Science in Nursing. Because of the insecurity of growing up poor and hungry while living in substandard housing, I always have been a big saver living below my means. But I wish I had had this knowledge & info you are sharing available to me when I was in my mid 20โ€™s. I have recommended to my 26 year old son that he read your blog.

    Since you are open with your finances and investing, so will I. I am retired from the Army and government service. I receive VA disability, Combat Related Special Compensation, and supplementary compensation related to my government service which totals $5,492.96 per month tax free. I also receive almost free (really I earned it) medical care for life. I own two paid for rental homes, which after I deduct 3 months rent out of the year for a slush fund for taxes, insurance, maintenance & repairs, still leaves me with $10,755 per year ($896.25 per month) income. Now that I am older and financially secure, I consider this my โ€œfunโ€ money. I also own roughly 1,000 ounces physical silverโ€ฆsome from my father and some I purchased at an average of $6 – $7 per ounceโ€ฆa lesson I learned from my Eastern European side of the family and their experiences in WWII when money became worthless and greasing palms with gold & silver saved their lives.

    Now to stocksโ€ฆ.In my Roth IRA, I have $53,775 ($35,952 in stocks + $17,822 in cash). Since the recent financial crisis I have squirreled away an additional $110,000 in cash. I would like to keep about $50,000 cash on hand just because it lets me sleep good at nightโ€ฆand if I really want something, I can get it and pay cash.
    So for investing, I have about $60,000 cash I can place in a regular account plus the $17,822 cash in my Roth IRA (a total of $77,822) plus about another $2,000 every month. I could use a bit more of my non-Roth IRA cash reserves and pay all cash for another rental home, but at my age I think I would prefer the passive income of DGI.
    My questions isโ€ฆHow should I spread out my stock purchases? I feel that too many stocks are too richly valued and I see the market is looking for any reason to go down. How far, I do not know, but every 5 โ€“ 7 years there is a major market correction.

    I cannot pick top or bottom so I am wondering how to go about this. My thoughts are to make a wish list of around 40 – 50 DGI worthy stocks , set alerts for 52 week lows, and establish a partial position in a DGI stock when it hits its 52 week low. And then perhaps add to that position whenever the stock sinks another 5 โ€“ 10%. This way I wonโ€™t be buying at the top nor will I bleed too bad as the market drops. I canโ€™t predict the bottom but I can average down on the way thereโ€ฆ.similar to what you are doing every month.

    What is your opinion on how to currently invest $77,822 in DGI stocks. I am also open to suggestions from your readers too.

    Thanks and Happy DGI investing!
    Steve

  61. Good Day Jason
    I hope you make that goal of yours of making $ 7,200 in dividends this year. Quote ” The dividends this month added up to 30.3% more than what the Freedom Fund generated in July 2014″ that’s just simply awesome Jason. I have enjoyed reading each month way you have been able to invest. Reinvesting the dividends you get, and the income you have been putting in each month. Yeah I think you can reach that high goal on this years dividends and it will be awesome. Its great to see people set high goals for them self, and meet those goals. your story and blog are a real inspiration. Keep up the great work and wish you the best.

    Cheers

  62. I’ve been thinking about what I would do if a massive market correction were to occur (like 50%). I think instead of selectively reinvesting (like I do now) I might turn DRIPing on many of the stocks that still seem like a good bet so as to spread out my exposure. Do you plan to keep the status quo on your strategy? (Just curious)

  63. Congrats on yet another impressive dividend income. I’m sure your annual income will be way higher than your goal.

  64. Great results yet again Jason! $400+ in a slow dividend paying month is excellent. The you of 5 years ago would be really pleased with the results.

    The BAX and BXLT dividends were disappointing to find out and kind of surprising. My plan is to hold them both but they’re also near the top of my list for shares to sell if I need to raise capital for other reasons.

    Solid month Jason! Keep up the good work!

  65. Going to be very close,but you should it make to 7200$ ๐Ÿ™‚ It’s don’t the destination but the journey that makes life exicting ๐Ÿ™‚ Keep Rocking !!!!

    Good Work,Great Focus!!!

  66. I’d probably keep going in Brian’s case. In today’s world, you never know about things like surprise medical expenses, etc. Having too many dividend-generating assets (for now) seems like a much better problem than having to sell assets you’re depending on for income in order to cover these unexpected expenses.

  67. It is great following your progress and sharing in your experience achieving these milestones Jason! :)๏Š

    I think you will accomplish your $7,200 annual dividend goal this year for a couple reasons. You will have increasingly more money to invest due to your rising income and your selection of dividend stocks will provide you some upside surprises, i.e. Disney.

    You are leveraging the magic of compounding using two methods! Great things are in store for youโ€ฆ.

    Take care!

  68. DF UK,

    Couldn’t agree more. I’ve made that type of comparison many times now, and some people will just never get it. Fine by me, but I’ll go ahead and keep my growing income streams. ๐Ÿ™‚

    Sounds like you’re having a great year over there. It’s wonderful when you’re able to exceed the prior year’s dividends with still four months to go. That’s tremendous progress. Keep it up!

    Best regards.

  69. DR,

    Thanks so much. Appreciate that!

    I’m definitely staying aggressive. And that’s because I’m still just as hungry as ever in my pursuit for financial independence. When you’re free like that, you’re able to structure your life in such a way that you maximize your happiness and minimize the BS. I view setting your own schedule as the ultimate luxury. I’m able to do that now, but you never know with online income and all that. I’d much rather rely on dividend income and let everything else be the icing on a delicious cake. ๐Ÿ™‚

    Hope you’re having a great year over there!

    Cheers.

  70. That’s a nice tally of dividends for the month.

    I’m happy that ITW bumbed their dividend quite nicely this month, that’s a very solid company that we can rely on for years to come.

  71. Justin,

    I’d gladly take four Christmases! ๐Ÿ™‚

    I wouldn’t mind oscillating dividends like that at all. As long as my yearly passive cash flow exceeded my yearly expenses, it wouldn’t matter much to me how it was spread out. I think I’ve proven my ability to budget.

    Now, if I were the type of person that couldn’t handle money and spent it whenever I had it, that wouldn’t be a very good payout schedule. But I wouldn’t be in this situation in the first place if that were the case.

    Enjoy Christmas!

    Best wishes.

  72. Steve,

    Thanks so much for sharing.

    I know what it feels like to grow up broke and hungry. There were many, many days I went without eating dinner. And I think that feeling of not wanting to go hungry ever again is partly what motivates me even to this day.

    As far as your situation goes, you’re already in a very comfortable spot. Earning $5,500 per month in tax-free income should be enough for you to live out your wildest dreams, so the dividend growth investing would be, as you state, just for fun at this point.

    I obviously cannot give specific investment advice since I’m not a financial advisor. However, I’m not sure it’s necessarily a good idea just to buy on 52-week lows. I do generally buy after a stock has been ripped apart a bit, but that’s only when the long-term fundamentals still appear sound. So I would just recommend that you really make sure you know what you’re buying at all times. Make sure you understand why the stock has fallen so much and whether or not the company is in a great position to profit in the future. Not all pullbacks are created equal. And it’s always important to pay attention to value, not price.

    But I’ve laid out a number of resources that I recommend for those just starting out:

    https://www.dividendmantra.com/getting-started/

    Knowledge is power. The more knowledge you have, the more powerful you become.

    Best of luck over there!

    Cheers.

  73. Michael,

    Thanks so much. Appreciate the ongoing support very much. ๐Ÿ™‚

    I’m really, really fortunate right now. It’ll be a tough go on $7,200, but I’m still ahead of pace in regards to my overarching goal of becoming FI by 40. And that’s even after quitting my job last year. So I just can’t overstate how overjoyed I am.

    But it wouldn’t be nearly as fun or as special without readers like yourself. I’m truly privileged to be able to share this journey. Inspiring people in the process is a real dream come true. I can only hope that you’re soaking up a lot of value and crushing your own goals over there.

    Thanks for stopping by!

    Best wishes.

  74. blahblah903,

    I wouldn’t change a thing if the market were to substantially correct. As always, some stocks correct harder than others. And some don’t budge much. So I’d continue hunting down the best values on the highest-quality stuff I could find.

    Seeing a stock drop by 10% or so in a very short period of time is scary for some people. I’ve certainly seen a number of my own holdings drop quite a bit over the last year or so. But it’s all noise in the long run. Nobody talks about Black Monday anymore. And that was in my lifetime. We’ll one day stop talking about the financial crisis as well. It’ll be on to the next crash du jour.

    Cheers!

  75. Tawcan,

    Appreciate the vote of confidence. We’ll see. Looks like it’ll be a tight race, but that’ll make it even more exciting. ๐Ÿ™‚

    Keep up the great work over there!

    Cheers.

  76. Jason, nice update congrats! I was wondering what constitutes a full position in your portfolio. Is it a certain amount of $ (position worth), a % of the portfolio, a % of income? Thanks

  77. JC,

    Definitely. The me of five years ago would literally have his jaw on the floor if he was able to see where I’m now at. It’s one thing to put a plan together and truly believe in it, but it’s quite another to live it out and see it all come together in real-time. It’s really special. ๐Ÿ™‚

    I hear you there on BAX/BXLT. I have the same viewpoint. Not interested in selling, but also wouldn’t be totally disappointed to see them go after the dividend policy change.

    Appreciate the support. Hope all is well over there!

    Best wishes.

  78. shankar,

    Indeed. The journey is where it’s at. And I can say for sure the journey is a lot more fun when you’re not a wage slave. ๐Ÿ™‚

    Thanks for the support. Much appreciated. I’m giving it all I’ve got, I promise you that.

    Hope you’re having a great 2015 over there!

    Cheers.

  79. Bryan,

    Thanks so much. I’m really fortunate to be in a position to share, inspire, motivate, and educate. ๐Ÿ™‚

    I’m really looking forward to seeing how things go as I near that finish line. Should be a lot of fun. I’m ahead of pace even now, so it’s really all gravy from here. It’s great to know that I’ve got that small margin of safety in my back pocket, just in case things slow down for any reason down the road.

    Hope all is well over there for you guys!

    Best regards.

  80. Spoonman,

    Yeah, ITW has been nothing but absolutely solid for me. I’ve been a very, very happy shareholder thus far. Doesn’t get a lot of press. And it’s not an exciting business model. But I like it even more because of all of that. ๐Ÿ™‚

    Thanks for dropping by. Hope you guys are still enjoying the Great White North!

    Best regards.

  81. Brazo264,

    A full position is really just simple math. It’s the total value divided by the total number of positions. As of my last update, a full position would be just under $3,200. I obviously invest more in certain companies (JNJ, PEP, PM, KO, etc.) and less in others (AAPL, MSFT, AMNF, etc.) depending on my own views of risk, company prospects, likelihood of dividend growth, etc. But a full position will be dependent on your portfolio value and how many stocks you hold. Whether or not you abide by that across the board, however, is up to you.

    Thanks for stopping by!

    Best regards.

  82. Hi Jason

    Great month you had, I have also posted about a fantastic month with ยฃ1,159 (or around $1,800) for August, which is my best month of the year.

    The really great thing is that at this level you can just pump it back into the market and receive even more dividends. I have bought 95 Royal Dutch Shell with the dividends in May June July & August which will add around ยฃ110 in dividends next year.

    Let the snowball roll and accelerate man

    Best Wishes
    FIUK

  83. That is a solid month of dividends, and great growth rates. If you combine your YoY growth rates, the growth rates the company’s provide, its obvious you will be FI faster than expected. Good Luck in 2015, I’m looking to have a good end of year as well.

  84. Its a great feeling, and authors like yourself are the inspiration.
    I plan for a 3% increase in income from the previous quarter, and had been aiming for around ยฃ1600 in annual dividend income, its looking more likely that I can break ยฃ2000 in annual dividends (aprox $3100). so all in all I am delighted. I follow authors such as yourself, as the majority of my portfolio is US based – much stronger dividend history over there, and many more companies who meet the Blue chip requirement.
    I use the 3% rule in a spreadsheet to map when I predict my passive income to be greater than my required income (i.e bills etc) every time that my income exceeds my expectations the spreadsheet reduces the point in time when I will be FI. even small amounts just now knock years off my FI date due to componding which is a great feeling (I appreciate its not 100% accurate, but neither is benchmarking by the S+P500 and this is more tailored to me). We are a similar age, but I cant save as aggressively, I think general cost of living in UK is higher, and I have young family. But I am delighted with the progress, given that in my first year as a DGI I made aprox ยฃ500 Divs, and now in year 3 have a target of ยฃ2000, and have reduced my FI date by aprox 5 years the benefits of this strategy are obvious to me. Now aiming for 50, not sure I can reduce to your target of 40 but you never know.
    As you say some people just don’t get it. For a while I tried speaking to people about shares and all they seemed interested in is share price.
    Another excellent article – Keep it going

  85. FI UK,

    Congrats on the excellent month over there. Looks like August is usually a big month for you, ending up much higher than the other months. I have a similar pattern with the last month of every quarter coming in pretty high relative to the other months. But I’ll take it when I can get it. ๐Ÿ™‚

    You’re doing the right thing there. Taking growing cash flow and reinvesting it so that you receive even more growing cash flow in the future is the name of the game. Growing cash flow begets more growing cash flow begets even more… It’s an amazing cycle of increasing passive income.

    Keep it up!

    Cheers.

  86. Hi DM,

    Seems like a solid month. I see we have some dividend payments in common so all I can say is that I’m glad to have you as fellow shareholder.

    Cheers,
    G

  87. RichUncle EL,

    Looks like I am ahead of pace here, which is wonderful. Means I’ve got a little room for error, just in case I hit a speed bump or something down the line.

    Glad to hear you’re looking to finish the year strong over there. Let’s keep it rolling!

    Thanks for dropping by.

    Best regards.

  88. Geblin,

    Likewise. Glad to be a fellow business partner alongside you. We’ve got some great businesses here working for us. The future looks bright!

    Cheers.

  89. DD,

    Thanks so much. Doing my best to share and inspire along the way. Great things lie yet ahead! ๐Ÿ™‚

    Looks like things are rocking along for you as well over there. Keep it rolling!

    Cheers.

  90. Hi Jason,

    Like your pattern, I get huge dividends in Oct, Jan, Apr, and July. I’m up to 70.5% of my expenses those months, but then deal with 43.7% and 57.3% in between. Reminds me of how vigilant I have to be to get over the hump.
    Keep it rolling!

    John

  91. Jason, thanks for the regular updates!

    I began this journey three years ago and will surpass $560 this month and should just barely reach $500 next month when and if I add MMM. While October will “only” see around $390, this number will also rise if I add UNP. Happy I’m on this path and I enjoy reading your updates as my own thoughts mirror yours to a large degree.

    Keep up the great progress and I’m excited to see where we’ll all be in another year.

    Karl

  92. Kudos on another fantastic month. I love your late night infomercial reference. Carleton Sheets real estate riches, and a bunch of other minions. I remember watching those :-).

  93. Hi,

    Good job thus far. It must be incredible to have a substantial passive cash flow!

    I have a question though, how much are your dividends taxed in your current location? I live in Finland and our dividend tax rate is 25,5% for most people. I’m afraid this will make a possible journey of mine to be financially independent 25,5% harder!

  94. John,

    Awesome numbers there. Isn’t it just so reassuring to know that half or (much) more of your expenses are already covered before you even lift a finger? Keep it up. Success begets success. Passive cash flow begets more passive cash flow. ๐Ÿ™‚

    Cheers!

  95. Karl,

    Excellent numbers there. Thanks for sharing. Congrats on the progress over the last few years. That’s pretty incredible. Who needs late-night infomercials when we’re busy building passive dividend income that will surely continue to grow faster than inflation over the long run? ๐Ÿ™‚

    Keep it up over there!

    Best regards.

  96. DD,

    Ha! Yeah, I fondly remember those infomercials. Never would have thought I’d find myself all these years later actually building a significant source of passive income out. Amazing what’s possible when you believe in yourself and you’re willing to work hard. ๐Ÿ™‚

    Thanks for dropping by!

    Best regards.

  97. Juha,

    Thanks so much. Appreciate the support from Finland! ๐Ÿ™‚

    Dividends are actually taxed pretty favorably over here, which is something I’ve touched on a few times now. You can earn up to approximately $47k (after factoring in deductions) in qualified dividends and pay 0% in federal taxes as a single filer. It’s pretty lucrative relative to traditional wage income.

    Best of luck figuring out what works best over there!

    Cheers.

  98. Hi Jason

    I love the site and you seem to be doing really well – so well done!

    I do, however, have one question / comment. 7k off of a base of 200k is only a 3.5% return, which seems very low considering the risky nature of equities. I get that you are hoping for dividend growth, but you certainly can’t count on this. Why not buy some bonds returning 5% (and more senior in the capital structure)… This would up your dividend income to 10% and lower your risk!

    What are your thoughts on this?

  99. Jon,

    Thanks for stopping by.

    You’re right about the yield. My portfolio yields approximately 3.5%. However, that’s just one aspect of total return – capital gains being the other aspect. If I were returning just 3.5%, I’d be a pretty lousy investor. But, as you probably know, high-quality stocks offer far greater total returns than fixed income over the long term. And you’re forgetting the “growth” in dividend growth. It won’t take terribly long for that 3.5% that’s growing at 6% to 7% per year to overtake that static 5%, and then it’s off to the races.

    I could easily boost my portfolio yield to 5%, but I’d be dipping my toes into the pool of low-quality stocks far more often than I’d like and/or limiting myself in terms of the stocks I’d be buying. Fortunately, a 3.5% yield is more than enough for my long-term objectives.

    As far as why I don’t buy bonds, you can read that here:

    https://www.dividendmantra.com/2014/07/a-0-allocation-to-fixed-income/

    https://www.dividendmantra.com/2015/03/warren-buffett-on-volatility-and-risk/

    Bonds may work for you. If so, that’s fantastic. But they’re not for me. I’d be giving up a lot of wealth and income growth over the course of my lifetime for less volatility. That isn’t an appealing trade-off, in my view.

    Take care!

  100. Mrs. Crackin’,

    Thanks so much. I’m just so glad the me of more than five years ago got his act in gear. I’d give him a big hug right now if I could. The future is never clear until it becomes the present, but optimism shouldn’t be underestimated. ๐Ÿ™‚

    Cheers!

  101. Nice July work there, Jason!

    I pulled in about $515 for the month, but I’ve never seen that 700, 800 or 900 a month that you have! I’m working on landing $6k for the year but things like the LO -> RAI and the SUPER disappointing changes to BAXALTA/BAX have made that goal more challenging. I’ve already sold BAXALTA and have BAX in the cue with a limit order. I’m going to put the proceeds into a bit more CAT and PM.

    I’ll be quite interested to see how the watch-wait works out for you! But of course I’m older and thus more impatient!

    Keep up the great work!

  102. ToughMother,

    Nice! $6,000 for the year would be an excellent result, and not far at all behind where I’ll probably land. Congrats on the success thus far.

    Appreciate all the support. We’re doing great things as a community. ๐Ÿ™‚

    Best regards.

  103. Jason, I had $1,902 in dividend income July 2015 vs. $1,005 in July 2016 which certainly is FANTASTIC, but this is a one time thing as I had a lot of cash stored up that I put to work during past 12 months, and now I’m taped out need to save up cash for retirement in 15 months-2 years from now. Next July, I’ll be lucky to move up more than 6-10 % from this July’s tally of dividend income. It will be painful in next two years if market corrects and I don’t have extra cash to put to work. Best, DD

  104. DD,

    Congrats on that sizable dividend income stream. That’s an incredible YOY improvement. Even if it doesn’t continue like that, you’ve set yourself up very nicely for the future. I wouldn’t worry too much about the stock market if you’ve already put the plan in place and you’re on track for your goals. I personally won’t care one bit what the stock market is doing once I’m living off of dividend income. I’ll be too busy living my life. ๐Ÿ™‚

    Keep up the great work!

    Best regards.

  105. Here is why you come out ahead by holding dividend stocks long term…
    I can pull up plenty of other examples.

    UNP: Growth of $10,000 with dividends reinvested
    Start date: 08/01/1995
    End date: 08/12/2015
    Start price/share: $10.89
    End price/share: $92.82
    Starting shares: 918.27
    Ending shares: 1,329.99
    Dividends reinvested/share: $11.81
    Total return: 1,134.50%
    Average Annual Total Return: 13.36%
    Starting investment: $10,000.00
    Ending investment: $123,476.42
    Years: 20.04

    UNP: Growth of $10,000 without dividends reinvested…
    Start date: 08/01/1995
    End date: 08/12/2015
    Start price/share: $10.89
    End price/share: $92.82
    Dividends collected/share: $11.81
    Total return: 860.80%
    Average Annual Total Return: 11.95%
    Starting investment: $10,000.00
    Ending investment: $96,079.55
    Years: 20.04

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