Annual Dividend Income Projections – Q3 Update

Since I’ve been projecting quarterly and annual dividend income for years on my own, it seemed logical to publish a blog post about it.

Years ago, when my dividend portfolio was much larger than it is now, projecting dividend income was my creative outlet.

I lacked a personal creative outlet like blogging, so these charts were IT for me!

On days that dividends were paid, I literally couldn’t wait to get home from work to update my charts.

Candidly, I’ve spent many wonderful Friday nights alone, just flat-out staring at numbers and charts on my iPad screen #investmentgeek 🤓.

With that said, I am a practitioner of blogging about what I’m doing in real life. I’m not here to make shit up, I’m here to document.

Seeing that quarterly dividend income is important enough to track on its own, I figured it would be important enough to blog about.

Furthermore, it will be interesting to track the quarterly amounts of income added as the business grows.

The dividend income updates document income received, while the aim of the forward dividend income update is intended to project quarterly growth.

To put it bluntly, even if I don’t save another dime, the annual dividend income is the bare minimum that this business would generate in 2018.

Below is an overview of where the RTC dividend income portfolio currently stands:

Annual Dividend Income Projections - Q3 Update Click To Tweet

Complete Annual Dividend Income as of October 14, 2017

annual dividend income

Number of businesses owned: (The top 2 positions in the chart above are the same position in different accounts)

Total annual dividend Income projected for 2018: $144.15

Total average income per month: $11.47 

Bi-weekly income: $5.29

Per day: $0.3772

As I’ve mentioned in the last few dividend income updates, this is an early stage dividend business.

I realize that $144.15 is a laughable amount of dividend income for a lot of bloggers and investors.

However, please keep in mind that I took a year off and began the rebuild of this portfolio around mid 2017.

Be that as it may, this cashflow machine is on its way to becoming a 4 figure business!

At my current pace, I estimate that it’ll take at least 3 years before $1,000 in annual income is received. However, the projected income will likely cross that mark a lot sooner.

Monthly Dividend Payment Outlook 

annual dividend income

Although I share monthly dividend income updates on this blog, I was especially looking forward to sharing the forward monthly outlook because I haven’t posted a double digit income month yet this year.

Due to ex dividend dates and the biweekly timing of investment purchases, the monthly updates are typically 2 or 3 months behind.

As you can see from the chart shown above, double digit months are coming…

You may also notice that the asset column is missing on this chart.

As outlined in the 1st dividend income update in 2017, I chose not to share investment details in order to maintain a more business-like approach.

I view this portfolio as one entity, and I view the companies I’ve invested in as product lines.

In addition, sharing my analysis of companies is not one of my strengths. Although I have the capacity to do so, I don’t enjoy it, nor do I believe in my ability as a teacher.

Frankly, I don’t enjoy providing advice on subjective topics.

I am much more skilled at motivating and providing a unique way of looking at things.

Quarterly Dividend Income Update

quarterly dividend income

Total dividend income (July to September 2017): $19.21

Compared to Q2: Up 349.88%

Income received in 2017: $23.48

Obviously I’m not going to be able to post 350% quarter over quarter growth going forward, as I only received dividends for 1 of the months in Q2. But I do expect a high rate of growth to continue.

Expenses

Total cost to Acquire income: $89.10

Profit Margin: 61.78%

Strategy for Growth

While many investors are more concerned with fees and the overall value of the portfolio, I focus on quality of assets and the amount of income added.

The bottom line for every company should be based around what that entity ultimately wants to accomplish. In this case, the goal is to eventually provide financial independence.

From a strategic point of view, the plan is to acquire assets as frequently as possible. Since I’m not concerned about fees or capital growth, the short term goal is to increase forward income every single month.

In turn, there will be more cash flow to reinvest into dividend paying stocks each month from my personal savings combined with dividend payments.

In short, dividend investing is a lot more simplified when you view it in terms of income added.

If your goal is to add $1,000 of annual dividend income per year, and you require $20,000 per year to survive, then you only need to add $1,000 twenty times.

Knowing that, you could aim for a higher annual amount to make reaching FI a shorter process.

Once the income reaches even half your goal, more options open up.


annual dividend income

Concluding Thoughts

Ultimately, I wrote this post to share more insight on my business-like approach to dividend investing.

I am attempting to provide a more simplified approach by breaking dividend investing down into monthly and quarterly updates.

Since this was my first annual dividend income update, I did not include the amount of income added over the last quarter. However, I intend to track the amount added and want it to become the primary purpose for this report going forward. Furthermore, my intention is to document and challenge myself to save more.

I look forward to sharing more dividend income updates to showcase how effortlessly dividend investing can help individuals achieve FI.

Questions for the readers: Do you track your quarterly dividend growth? What is your average cost to acquire dividend paying stocks? How much income is your portfolio expected to generate annually?

12 Comment

  1. Hi Graham,
    You remind me of myself about eight years ago 🙂 And I’m still as interested in dividend investment as I was when I first started. So, you’re doing great, keep up that enthusiasm.

    I do have a question for you, I was wondering how you are projecting your dividend income for the year. Are you just looking at your current positions and coming up with projection?

    Here is how I do my yearly projection. In my spreadsheet, I have a column for actual and projected annual income for each stock I own. The actual income column simply takes into account the current div/sh times number of shares. Whereas the projected income column uses project dividend increase for a given stock to determine its projected yearly income. At the bottom, I just sum up both actual and projected annual income. At any given time, I can see how my actual div income is trending vs. projected income.

    For projected div/sh value, I use past year’s div raise as a projection. It also helps me see whether company is slowing down its div raise, keeping it the same, or increasing it.

    Over time, I use this information to rank my stocks which comes handy when I need to trade one company for another.

    Hope this helps and keep up the good work,

    Mr. ATM

    1. Hi Mr. ATM,

      That’s a huge compliment!! If I remind you of yourself 8 years ago than I must be doing something right lol. Thanks for the kind words!

      In regards to your question, my projections are based on current positions and not on future purchases. I haven’t actually considered adding a column to track projected dividend income, but that’s a fantastic idea! Since I’m planning on publishing a dividend projections post per quarter, I may have to incorporate that into the next report. I can definitely see how it would be valuable information to have. Like you said, it would be helpful when considering to switch out of a position.

      I appreciate the idea and it will certainly help. I’m looking forward to tracking more details in future dividend reports. And as always, I appreciate any tips I can get from someone that has already achieved what I’m trying to achieve. Take care!

  2. Hello Graham, great post. You are off to a great start and I like how you are taking the approach to growing your dividends month to month.

    To be honest, I don’t do a great job of tracking the projected growth on a spreadsheet or anything. I do the research before buying a particular company and then of course keep an eye on it. But I don’t have it detailed down to the numbers, I probably should.

    I like to stick with those companies that have paid or increased dividends for 20, 30, 40 years straight. That is pretty darn reliable in my book. Take care buddy !

    1. Hi Mr. Defined Sight,

      Thanks for reading and commenting! I appreciate the support!

      And thanks for sharing about your investment process. In some ways, if you’re selecting quality companies, not looking at your investment numbers all the time is a good thing. I guess I’ve always enjoyed the documenting side of investing as it helps me stay motivated. I find it rewarding to see even the smallest increments of growth.

      I try to aim for those type of long term dividend paying stocks as well. Other than a company with a balance sheet like Apple, it’s rare that I would buy a stock with less than 10 years of paying dividends. Some of the financial stocks I’m holding have paid for more than 100 years. You can’t go wrong with reliable dividend payers. Have a great week!

  3. I just started tracking my dividends a few months back, but I now find it immensely helpful. Although dividends are not the main focus of my portfolio, they are still an important part.

    I really enjoy reading about how other people are growing theirs, so consider me an avid reader of your site! 😀
    MrDoublingDollars recently posted…How I Ate All Week For Just $13.34 By Living On a Food Stamp BudgetMy Profile

    1. Thanks for reading and commenting, Mr Doubling Dollars! I find tracking dividends to be incredibly helpful too! I also find reading other investors dividend income updates to be super helpful. And thanks for being an avid reader!! I really appreciate that man! It’s likewise over here – I’m an avid reader of your site as it helps me stay motivated. Seriously, all your challenges, side-hustles, and income reports inspire me to work harder. Keep it up!

  4. GYM says: Reply

    These are beautiful graphs! I like your forward monthly outlook too! Another great thing is if the companies announce dividend increases, so your forward monthly outlook will need to be updated (and I’m sure that’s a welcome change!).
    GYM recently posted…The Ultimate Recipe for FIRE (Financial Independence Retire Early)My Profile

  5. Hi Gen Y Money,

    Thanks for commenting and for the kind words about the graphs. I just added to one of the positions this morning so the annual income is already higher :). And I definitely anticipate that dividend raises will bring the income higher. Most of the companies I invest in increase payments annually. I need to get this business to 4 digits annually asap! Take care!

  6. “I realize that $144.15 is a laughable amount of dividend income for a lot of bloggers and investors.”
    Trust me, buddy, no one is laughing! respect for taking control and having a plan!
    Everyone has to start somewhere. Visualise your dividend income 10 years from now!!
    RichestManInLondon (@RichestManInLDN) recently posted…Everything You Need to Know About Finance & Investing in Under an HourMy Profile

    1. Hi RMIL,

      Thanks taking the time to comment! I appreciate the support! It’s true that you’re ahead of the game when you begin to take control and when you have a plan. I try to remind myself of what I ultimately want to accomplish and where my dividend income will be down the road on a daily basis. Visualization is an extremely helpful tactic. Have a great weekend!

  7. Hey Graham, congrats on a great year! I personally forgot about the expenses part. There is a cost to acquire dividend paying stocks. It’s great that you also included this, gives a better overall picture.
    I also like the idea of comparing how much you need each year to survive and how much you add to your annual dividend income. It’s simple math, comparing your dividend income to your living expenses, but it just feels very motivating to me when you look at it this way.
    Terence@TheTirelessWorker.com recently posted…Start Investing Immediately (3 Common Reasons People Won’t)My Profile

    1. Hi Terence,

      Thanks for the support and for taking the time to comment. Although I don’t prioritize the commission costs to acquire assets, I do think it’s important to understand the overall picture. In my earlier years with investing, I focussed a lot more on buying value stocks. I was often holding on to cash for too long. Now that I’ve altered my strategy to dividend investing, I’m putting dollars to work every 2 weeks. As long as the fees are not costing more than the amount of income being brought, I’m happy. I like this way of thinking because it’s business-like. Businesses have to spend money to make money. And like you said, it’s simple math. I find it to be a motivating way to look at investing as well. Hope you’re having a great weekend! 🙂

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