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.
February was another solid month for me. I’m really grateful that I decided to become a dividend growth investor and start down the path to financial freedom four years ago. It would have been easy to give up after seeing the progress trickle in. But I knew there was substantial power in pennies, especially once you collect enough of them. The pennies that I receive in the form of dividends from my investments have grown from a trickle to a stream. And one day, this stream will be a deluge.
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:
February 2014 Dividends Received
- Toronto-Dominion Bank (TD) – $11.81
- AT&T Inc. (T) – $23.00
- Vodafone Group Plc (VOD) – $85.56
- Raytheon Company (RTN) – $13.75
- General Dynamics Corporation (GD) – $11.20
- Air Products & Chemicals, Inc. (APD) – $14.20
- American Realty Cap Properties Inc. (ARCP) – $16.44
- Kinder Morgan Inc. (KMI) – $73.80
- The Procter & Gamble Company (PG) – $30.68
- Realty Income Corp. (O) – $12.75
- ONEOK, Inc. (OKE) – $14.00
- Omega Healthcare Investors Inc. (OHI) – $29.40
Total dividends received during the month of February: $336.59.
Oh man, I can’t say how much I love being a dividend growth investor. That was more than $300 I didn’t have to wake up at 6:30 a.m. and trot down to work to earn. Making a wonderful decision just once can have a lasting impact for the rest of your life. For instance, just buying shares in one high quality company one time can provide you a lifetime of income. But if you compound these decisions over and over again…well, that’s when the fun really begins!
And that’s really what you’re seeing with my journey here. I make active decisions every single day to save as much as I reasonably can, and then I use the savings to invest in the most attractively valued high quality dividend growth stocks I can find. I’m working hard now so that I don’t have to work hard later. I know money can work harder than I ever could, so why stand in its way?
This February’s dividend tally was my highest February yet. This is a full 56.4% improvement over the $215.20 I received in February 2013. Another very solid improvement in year-over-year dividend income. I’m just really glad I’m able to continue improving in this manner. Life has a funny way of throwing a wrench in even the best laid plans, but so far I’ve been fortunate to acheive a lot of progress without any major setbacks.
Looking forward, March is going to be a big month for me as a large portion of my portfolio pays out on the third month of every quarter. I’m really excited to close out the first quarter of 2014 on a positive note, as it has so far started out spectacularly. Every month is a stair that leads upward toward financial independence. And I’m hopeful I can keep climbing at a rather vigorous pace.
I was able to cover 18.2% of my expenses this past month via dividend income alone. I feel pretty good about that. That means almost 1/5 of my expenses were paid for without the need to go to work. And every month this percentage climbs ever higher.
One of my goals this year is to receive $5,200 in dividend income during 2014. With two months down and in the books, I’m now 13.2% of the way there with $684.56 in total dividends for 2014. I feel confident that with a strong March I’ll be on pace to reach this goal. It was a challenging goal, but I’m looking forward to meeting some pretty big expectations I placed on myself at the outset of the year. We’ll see how I do!
I’ll update my dividend income page to reflect January’s dividends.
Full Disclosure: Long all aforementioned securities.
How was your February for dividends? Another great month?
Thanks for reading.
Photo Credit: sscreation’s/FreeDigitalPhotos.net
Edit: Added total dividends for 2014