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 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 just 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 Received
- 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’s 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 portion 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 income was 16.4% higher than what I 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.
I covered 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 September 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 huge 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?
Thanks for reading.
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