Another month has passed by, and it’s time for me to post an article on my favorite subject: dividend income. The reason why I love to post articles on dividend income is because it’s pure numbers. It’s hard to argue the success of long-term dividend growth investing when you can slowly and surely see dividend income rise over time and get closer to covering one’s expenses.
September broke all kinds of records for me. It was a really special month. Although my recent Freedom Fund update showed an all-time high in portfolio value, I place much less emphasis on the total value of the Fund than I do the dividend income it generates because Mr. Market’s assigned value to the companies I invest in is fickle. Values fluctuate up and down – sometimes quite wildly. However, the dividend income is steady and consistent. And that’s what I really love. You know why? Because my bills are also steady and consistent. Instead of having to sell off a percentage of my assets that are fluctuating in value in order to fund my lifestyle, I’ll be receiving steady income that can be predicted with a fair amount of accuracy.
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:
- Intel Corporation (INTC) – $54.00
- ConocoPhillips (COP) – $37.95
- Aflac Incorporated (AFL) – $35.00
- Wal-Mart Stores, Inc. (WMT) – $17.86
- Phillips 66 (PSX) – $8.44
- Southside Bancshares, Inc. (SBSI) – $13.20
- Chevron Corporation (CVX) – $40.00
- Emerson Electric Co. (EMR) – $24.60
- Norfolk Southern Corp. (NSC) – $36.40
- Lorillard Inc. (LO) – $55.00
- Johnson & Johnson (JNJ) – $66.00
- Avista Corp. (AVA) – $16.78
- Realty Income Corp. (O) – $7.26
- American Realty Cap Prop Inc. (ARCP) – $7.58
- McDonald’s Corporation (MCD) – $46.20
- Harris Corporation (HRS) – $16.80
- Royal Dutch Shell plc (RDS.B) – $22.50
- BHP Billiton plc (BBL) – $29.50
- Digital Realty Trust, Inc. (DLR) – $35.10
- PepsiCo, Inc. (PEP) – $43.70
Total dividends received during the month of September: $640.87
A new record! When I seen the total I hit this month my mouth just dropped. I can’t believe that just a little over three years since starting out with five grand, a desire to change my life and a thirst for knowledge that I’m seeing over $600 in passive income in just one month. It’s truly incredible. It’s months like this that keep me inspired to keep going, because I know that financial independence is indeed possible using the dividend growth strategy. The tangible nature of dividends play into a self-fulfilling cycle of progress where the passive income keeps growing and inspiring me to inject even more fresh capital which buys new investments into high quality companies which pay out even more dividends. The new dividends inspire me and pay for the new investments which then pay out even more. Then you throw in the organic growth of the dividends themselves via dividend raises from the individual companies and you have an absolutely wonderful system.
This was a big improvement over the $357.82 in dividends I received during September of 2012. That’s an increase on the order of 79.3% on what was already a pretty big total. I’m extremely pleased with this. I know progress in terms of percentages won’t keep up at this rate, but as long as absolute totals keep improving at levels like this I’ll be more than happy!
I was able to cover just over 40% of my expenses this past month by dividends alone. That’s almost a full half of a lifestyle paid for because I made great decisions with capital time and time again over the course of the last few years and realized that I’m not delaying gratification at all.
My goal is to receive $3,500 in dividends during the year of 2013. September is now over, and there’s only three months to go until 2014 comes to a close. Where does time go? With nine months marked off the calender I have been able to accumulate a total of $2,887.32 in dividends over the course of this year. I’m now quite confident I’m going to exceed my dividend income goal at this point.
I’ll update my dividend income page to reflect September’s dividends.
Full Disclosure: Long all aforementioned securities.
How about you? Was September a fantastic month of dividend income?
Thanks for reading.
Special note: I’m going to be out of town from Thursday – Sunday. I’m visiting family in Michigan for a birthday celebration, and hence may be slow to respond to some comments/emails. I’ll do my best to keep in touch with everyone!
Photo Credit: sscreation’s/FreeDigitalPhotos.net