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.
August was just another big step in the right direction toward financial independence. Waking up to more money in my account than I had the day before is simply one of the most phenomenal feelings in the world. That means I’m actually getting richer while I sleep. Investors talk all the time about sleeping well at night, and I have got to tell you that my dreams have never been sweeter! How can you not sleep well when you have companies out there working on your behalf and sending you cash?
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:
August 2014 Dividends Received
- AT&T Inc. (T) – $23.00
- Verizon Communications Inc. (VZ) – $20.67
- Toronto-Dominion Bank (TD) – $13.21
- Raytheon Company (RTN) – $15.13
- Vodafone Group Plc (VOD) – $101.50
- The Clorox Co. (CLX) – $25.90
- General Dynamics Corporation (GD) – $12.40
- Air Products & Chemicals, Inc. (APD) – $15.40
- ONEOK, Inc. (OKE) – $20.13
- American Realty Capital Properties Inc. (ARCP) – $14.17
- Kinder Morgan Inc. (KMI) – $77.40
- The Procter & Gamble Company (PG) – $32.82
- Realty Income Corp. (O) – $12.80
- Omega Healthcare Investors Inc. (OHI) – $30.60
- ONE Gas Inc. (OGS) – $2.24
- Orchids Paper Products Company (TIS) – $21.00
Total dividends received during the month of August: $438.37
Man, what a month! 16 different wonderful companies sent me a check over the course of August. That is much better than when I used to rely only on a day job for income, and would receive 2-5 checks per month. I’d much rather have 16 than 5! Now, my dividend income still doesn’t come even close to what I was making when I used to work in the auto industry. But this income was passive, and these checks were deposited into my account while I was literally sleeping, as described above. That’s a lot easier than running around a dealership for 50+ hours per week.
I’m still a long way from financial independence, but I can’t help but reminisce about how far one can travel in just a few short years. I’ve been at this for a little over four years now. It’s had its ups and downs like anything else in life, but it’s largely been extremely enjoyable. And after just a few short years of my life I’m routinely receiving hundreds upon hundreds of dollars in dividends from fantastic companies whose products and/or services are so ubiquitous that many of them can’t help but become more successful over time. And that’s a wave of success I’m happy to ride.
This month’s dividend income total was 28.4% higher than what I received in August of 2013. So that’s a solid year-over-year improvement right there, and certainly something I hope I can continue building upon as I go along.
I was able to cover 23.3% of my personal expenses this past month via dividend income alone. I feel like I’m at a point where my dividend income is routinely covering about ¼ of my personal expenses, which is wonderful to know seeing as how I’m about 25% of the way into my journey to financial independence. And this month was actually a bit difficult as I had a rather large one-off expense this past month which I’ll be discussing with my upcoming income/expense post.
Looking forward, September is going to be an absolutely huge month of dividends. I’m extremely excited to see how the next few weeks shape up. I woke up to quite a few dividend payments just the other day to get the month started. That’s better than any breakfast I can think of!
One of my big goals this year is to receive $5,200 in dividend income throughout 2014. I now have eight months booked in, and after tallying up all the dividends I can proclaim that I’ve received $3,556.00 in dividends during the year so far. That averages out to $444.50 per month, so August was right on pace. I’ve completed 68.4% of my goal, so I’m on target to exceed my goal by a comfortable margin.
I’ll update my dividend income page to reflect August’s dividends.
Full Disclosure: Long all aforementioned securities.
Did you have a great August? Receive a healthy amount of dividend income?
Thanks for reading.
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