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, getting closer to covering one’s expenses.
Boy, things are moving along now! The snowball is definitely rolling faster and faster, starting to almost take off without me. And that’s really where I want to be: I want to push hard for a few years or so, but eventually let that thing roll along without any further effort. And toward that end, March was absolutely incredible. If pennies are drops in a bucket, I’m getting pretty close to being able to swim.
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 interests other than full-time work. Without further ado:
March 2015 Dividends Received
- Wells Fargo & Co. (WFC) – $31.50
- Phillips 66 (PSX) – $13.50
- ONE Gas Inc. (OGS) – $2.40
- ConocoPhillips (COP) – $40.15
- Aflac Incorporated (AFL) – $39.00
- Visa Inc. (V) – $2.40
- Orchids Paper Products Company (TIS) – $21.00
- Target Corporation (TGT) – $36.40
- Norfolk Southern Corp. (NSC) – $41.30
- Lorillard Inc. (LO) – $33.00
- Johnson & Johnson (JNJ) – $70.00
- International Business Machines Corp. (IBM) – $16.50
- Exxon Mobil Corporation (XOM) – $13.80
- Emerson Electric Co. (EMR) – $28.20
- Chevron Corporation (CVX) – $42.80
- Unilever PLC (UL) – $32.53
- Southside Bancshares, Inc. (SBSI) – $16.10
- Avista Corp. (AVA) – $18.15
- Realty Income Corp. (O) – $13.23
- McDonald’s Corporation (MCD) – $51.00
- Royal Dutch Shell PLC (RDS.B) – $23.50
- Harris Corporation (HRS) – $18.80
- National-Oilwell Varco, Inc. (NOV) – $29.90
- BP PLC (BP) – $48.00
- T. Rowe Price Group Inc. (TROW) – $10.40
- PepsiCo, Inc. (PEP) – $50.44
- Digital Realty Trust, Inc. (DLR) – $55.25
- BHP Billiton PLC (BBL) – $142.60
Total dividends received during the month of March: $941.85.
Do you see that? Over nine hundred buckaroos. And guess what I did to collect that income? Nothing!
I clocked in nowhere. Dealt with a non-existent boss. And woke up when I wanted to (which isn’t particularly early).
But the past me did have to make great decisions with capital so that the current me can enjoy this income. Don’t neglect the future you.
I’m so stoked to write this update. This is the first time I’ve ever come anywhere near this much passive income in one month. I broke through the $800 and $900 milestone all in one shot. But what’s really incredible about all of this is that I haven’t even been at that long. I started in mid-2010 with a modest income and big dreams. And here we are five years later with almost $1,000 in passive income hitting my wallet in one single month. It’s absolutely incredible.
Look, I often state that if I can do this, anyone can. Sure, it’s a cliché, but it’s also absolutely true. I worked at a car dealership for most of my career. That couldn’t be further away from the financial industry if I tried. I have no special training or education. I didn’t (and still don’t) make an incredible, six-figure salary. But yet here I am five years down the road earning substantial dividend income.
And you can do this as well.
This month’s total was 32.9% higher than the dividend income my Freedom Fund generated in March 2014. I’m surprised I achieved such a solid year-over-year percentage increase since last March’s total was already such a huge base to improve upon – it was my previous best. But even better than the percentage increase is the fact that this month’s total was more than $200 more in fresh, crisp cash flow.
I was able to cover 41.6% of my personal expenses last month via passive dividend income alone. I believe that’s close to my all-time high, and I’m more than pleased with that. To be able to cover such a huge chunk of my expenses with income that I don’t have to go out and work for is incredibly reassuring. Life’s a lot less stressful when you know that a significant portion of your expenses are already covered before you even think about making money via the exchange of your time.
What this report shows – like all the others – is that a few dollars here and there add up in a hurry. You can see that quite a few of my holdings paid out $20 or $30, but when you diversify your portfolio across 50+ positions and consistently add new capital you can clearly see what’s possible.
What I also like about this month’s report in particular is the juxtaposition between the all-time high dividend income against the portfolio update that showed the value actually declined slightly over the course of the last month. Capital gains come and go, but dividends tend to keep on coming.
I’m looking forward to keeping this train moving with continued purchases in April and beyond. So keep an eye out for more record breaking!
One of my major goals for 2015 is to receive $7,200 in dividend income during this calendar year. The first quarter is behind us and I’ve now received a total of $1,753.59. That’s 24.4% of my goal, so I’m right about on pace. There was a big semi-annual payment this month from BBL which inflates this quarter’s result a bit, but continued purchases should get me pretty close. As always, I appreciate all of your continued support. So let’s continue to strive for financial independence together!
I’ll update my Dividend Income page to reflect March’s dividends.
Full Disclosure: Long all aforementioned stocks.
Did you have a great March as well? On pace for your 2015 goals?
Thanks for reading.
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