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
Number of businesses owned: 5 (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
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
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.
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.
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?