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 publish articles updating my 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.
I don’t know what other word to use than incredible for June’s dividend income tally. My second-highest month ever, I received hundreds of dollars just for being me. I mean, I think I’m a pretty solid guy. But I never thought that would translate into getting paid just to be me, just to wake up and be alive. I feel like I have this invisible benefactor paying for a significant portion of my expenses in life. But that invisible benefactor is actually the me of the past, hooking the me of today up with significant passive income. Thank you, me!
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. What you’ll see below is a list of every dividend I collected over the prior month, which company paid the dividend, and the amount of the dividend. Without further ado:
- Wells Fargo & Co. (WFC) – $33.75
- Wal-Mart Stores, Inc. (WMT) – $18.62
- Phillips 66 (PSX) – $15.12
- ONE Gas Inc. (OGS) – $2.40
- ConocoPhillips (COP) – $40.15
- Aflac Incorporated (AFL) – $39.00
- Visa Inc. (V) – $2.40
- Unilever PLC (UL) – $31.40
- Southside Bancshares, Inc. (SBSI) – $17.02
- Johnson & Johnson (JNJ) – $75.00
- Target Corporation (TGT) – $36.40
- Norfolk Southern Corp. (NSC) – $41.30
- Lorillard Inc. (LO) – $33.00
- International Business Machines Corp. (IBM) – $19.50
- Exxon Mobil Corporation (XOM) – $14.60
- Emerson Electric Co. (EMR) – $28.20
- Chevron Corporation (CVX) – $42.80
- Microsoft Corporation (MSFT) – $7.75
- Harris Corporation (HRS) – $18.80
- Avista Corp. (AVA) – $18.15
- McDonald’s Corporation (MCD) – $51.00
- Praxair, Inc. (PX) – $7.15
- Realty Income Corp. (O) – $13.27
- BP PLC (BP) – $47.60
- Royal Dutch Shell PLC (RDS.B) – $23.50
- National Oilwell Varco, Inc. (NOV) – $29.90
- T. Rowe Price Group Inc. (TROW) – $13.00
- Digital Realty Trust, Inc. (DLR) – $55.25
- PepsiCo, Inc. (PEP) – $54.09
- Union Pacific Corporation (UNP) – $8.25
- Travelers Companies Inc. (TRV) – $6.10
Total dividends received during the month of June: $844.47
Almost $900. That I didn’t have to work for. Amazing, right? What’s really amazing, in my view, is that it didn’t actually take that long to get here.
I started this strategy in mid-2010 with very little money. So we’re talking a little over five years now. Is five years a long time? Unfortunately, it’s not. Life is short. But the fact that five years can go by quickly is exactly why one should be living below their means and regularly investing excess capital in high-quality businesses that pay and grow dividends.
And once you’re able to get that snowball rolling, it rolls by faster and faster, even without as much input from you. That works in real-life. Think about it. The $845 I received in dividend income in June was reinvested almost as fast as it hit the brokerage account. But that was all money I didn’t have to work for. However, I was working in June. Incredibly hard. Perhaps harder than ever. So I was working at the same exact time my money was working. So you’ve got this concurrent income generation going on, supercharging my capital deployment abilities. I earned thousands of dollars from active income, which was mostly invested, while the passive income added up to almost $1,000 all by itself, and it was all reinvested as well.
I remember when I first started investing, it was difficult for me to come up with more than $1,000 in any one month with which to invest. That’s a lot of money, folks. I think we sometimes become numb to these figures when we constantly immerse ourselves in personal finance, but it’s hard for a lot of people to save four figures in a month. What’s wonderful here is that almost $1,000 came my way before I even picked up a finger.
What’s also fantastic is how many “paychecks” came may way this month.
For most of my life, I’ve relied on just one paycheck. I went to work and I was paid for my time. But that relationship is fragile and fickle. If an employer no longer requires my services, I lose 100% of my income.
But I now have dozens of companies – each with thousands of employees – working for me and sending me dividends. I received 31 “paychecks” this month. Better than just one, no? And, even better, I didn’t actually have to work for any of them.
One paycheck you work for. Or dozens you don’t work for. It’s far better to be an investor than a worker.
Oh, and I’m receiving regular pay raises as well, which helped propel my dividend income in June 2015 to finish 20.7% higher than what my Freedom Fund generated in June 2014. That’s really solid YOY growth in passive income, especially considering that it’s coming off of such a large base.
I was able to cover 48% of my personal expenses this month via passive dividend income alone. I feel fantastic about that. Covering nearly half of my expenses with income I don’t have to work for feels really, really good. That means before I even tried to earn a living, my “invisible benefactor” covered almost half of my expenses last month. Thanks again, me of the last five years!
And thank you all. Your support over the last five years has been tremendous and has allowed me to continue saving, investing, and working hard through all the ups and downs. I can only hope that I continue to repay you through inspiration, motivation, and great content.
2015 is turning out to be one of my best years yet. I just broke records in June for total transactions and total capital invested, which shows just how excited to achieve financial independence I remain and how aggressive I continue to be. And I think the foreseeable future looks great. The fact that I’m doing this while working for myself is just a true pleasure and a real gift. But I’m not resting. I’m still giving it my all, every single day.
One of my goals this year is to receive $7,200 in dividend income during this calendar year. We’re now at the halfway point, which allows for some solid perspective. With June’s numbers in the books, I’ve received a total of $3,405.32 in dividend income in 2015. So I’m a bit behind here. That’s only 47.3% of the way toward my goal. But I’m quite confident I’m going to hit my target this year. I continue to aggressively buy high-quality dividend growth stocks, which will start to pay dividends – literally and figuratively – in the second half of the year, and a few dividend raises here and there will also help propel me closer. It should be an exciting finish. Stay tuned!
I’ll update my Dividend Income page to reflect June’s dividends.
Full Disclosure: Long all stocks except LO.
How was June for you? Dividend income up to your expectations? On pace for your goals?
Thanks for reading.
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