Dividend Income Update #4 | September 2017

income update

Welcome to the fourth dividend income update of 2017!

For the past 4 months now, I have been publishing my dividend income earned to document the process of reaching financial independence.

As I’ve mentioned previously on this blog, my end goal is to reach at least $2,000 per month from dividend income.

Though $2,000 per month is less than I currently earn, once financial independence is reached, there are many expenses that will suddenly disappear.

For example, I will no longer have to spend $120 per month on commuting.

In addition, reaching $2,000 per month in dividend income is not the end goal, it’s the beginning.

It’s just the amount that I require to comfortably reach financial freedom.

Even after I reach FI through dividend income investing, I will continue to save.

I plan to continue saving a minimum of 10% and reinvest it back into dividend stocks and index funds.

Though I intend to maintain a focus on building a cash flow machine, you can be damn sure that I’ll be reinvesting into index funds to balance out the portfolio.

Reaching financial independence will also be the best time to diversify and focus on capital preservation.

That said, I’m only on the 4th dividend income report, and it may require as many as 200 income updates before I’m able to earn $2,000 per month.👀

As mentioned earlier, though, I mostly pay attention to growth in terms of percents.

With that perspective in mind, September was the first month of 2017 that the dividend business achieved YOY growth.

Here are the results for September 2017:

Dividend Income Update #4 | September 2017 Click To Tweet

 

Dividend Income earned in September 2017

Total in September: $8.28 

Last month (August 2017): $4.59

Month over month growth (compared to August 2017): Up 80.39%

Last quarters total (June 2017): $4.27

Quarter over quarter growth (compared to June 2017): Up 93.91%

Dividend income in June 2016: $7.10

Year over year growth (compared to June 2016): Up 16.62%

Total in 2017: $23.48

Monthly average in 2017: $1.96

How many businesses/stocks paid dividends: 2


income update

Conclusion

When reflecting on the September dividend income update, it’s easy to see that dividend investing requires a lot of patience!

While a less patient person may become unmotivated after seeing only $8.28 earned, I imagine how quickly the cash flow will grow if a 93% rate of quarterly growth is maintained.

Although it’s impossible to sustain a 93% rate of growth long term, it is feasible to expect cash flow to increase by hundreds of percent over the next 3 to 4 years.

My short term goal for 2017 is to earn more than I did back in 2011, which was $55.70.

As for 2018, I want to reach an all time high in dividend income earned, which will require me to earn more than $424.77.

Though I am merely speculating for the sake of this post, I want to reach at least $1,000 annually from dividends in year 3.

To ensure this is achieved, and to provide more of an accurate estimate, I am planning to publish a separate dividend post quarterly, which will reveal my complete forward projected income.

In conclusion, unlike other businesses that require sales techniques among a plethora of other skills, running a dividend business is much more simple.

Growth is achieved simply through stick-to-itiveness with saving and investing, and as a result of dividend raises.

I look forward to sharing my dividend income for October, which will again become the new 2017 high.

Thanks for reading!🌞

Questions for the readers: How was your dividend income for September? What annual rate of growth is your dividend income increasing at?


13 Comment

  1. Jay says: Reply

    Thanks for the update Graham. I admire your long term vision, as well as your shorter-term goals. It sounds like you’re on the right track – well done!
    Jay recently posted…Free Trend Following Trade Ideas For September 2017 (Part 3)My Profile

  2. Thanks for taking the time to comment, Jay! I appreciate your support.
    I think I’m on the right track too. As long as I’m able to keep the long term vision in mind, while being mindful of short term goals, I think I should be able to achieve FI at a relatively early age. Have a great week! 🙂

  3. Excellent buddy! Keep plugging away and this baby will grow. History has shown that dividend investing is one of the best things you can do. September is shaping up to be a good month for me. I have a few more companies left to pay out. I love it! Take care my friend.

    1. Hi Mr. DS,

      Thanks for commenting! I appreciate the support. It’s great to hear that September is shaping up to be a good month for you. It’s always nice to have a few more dividend pay days to look forward to. October is shaping up to be another month of progress for me. The dividend income will crack double figures, and it should be about double the amount received this month. Thanks for stopping by! 🙂

  4. Wasn’t expecting to see this post for another few weeks. But I guess if all your companies paid you out already might as well right? The Dividend investing game is a long patient one, you are correct. But it is fun to see huge gain/ growth percentages while the portfolio is new. Keep up the good work. I’m with you, pushing for the 1k mark. Although I should hopefully hit it next year.
    Dividend Daze recently posted…Dividend Update – August 2017My Profile

    1. Thanks for commenting, Dividend Daze! Since I’m still in the early stages of building my dividend portfolio, there were only 2 companies that paid this month. So, I figured why not publish the report early. I agree that it’s fun to see huge percentages of growth in the early stages. It’s going to take me a few years until I start seeing significant cash flow, but it will be a fun process. Best of luck with reaching the 1k mark next year! I’m looking forward to reading about your September income! Take care 🙂

  5. Excellent growth! That’s more important than $ numbers this early in the process!

    1. Hi Dividend Investor,

      Thanks for taking the time to comment! I’m with you 100% that growth is more important in the early stages. It helps with motivation, and it good for maintaining a business-like approach to investing. Have a great day! 🙂

  6. One foot in front of the other, the march goes on towards freedom! Some good growth numbers there Graham. I have no doubt that you will reach your goal. 90% of success is just starting, and so many people don’t. They just wish they had $2000 a month coming to them. But that’s where it begins and ends. Not you, you have taken action and become focused. You will get there my friend!
    MrDoublingDollars recently posted…Are the Phrases “Good Debt” or “Bad Debt” Justified?My Profile

    1. Hi Mr. Doubling Dollars,

      As always, I appreciate you taking the time to leave a comment! Also, thanks for the words of encouragement. You’re right that the march towards freedom is best viewed in small steps.

      I was listening to the “Radical Personal Finance” podcast last night and he was interviewing a writer that said “activity follows identity.” – I absolutely loved that quote and I think it fits right in with your action focussed comment. Hope you’re having a great week!

  7. GYM says: Reply

    Which companies did you invest in to give you that dividends? Great job by the way! Collecting dividends is addictive.
    GYM recently posted…Norbert Gambit: How to Convert CAD to USD in Questrade for $6My Profile

    1. Hi GYM,

      Thanks for the kind words and for taking the time to comment! The companies that paid dividends this particular month were ENB and REI.UN. In general, I try to avoid mentioning most of the companies I invest in by name. I do this mainly because of the nature of the industry I work in. I 100% agree that collecting dividends is addictive! Thanks for stopping by! 🙂

      1. GYM says: Reply

        Ah makes sense Graham! 🙂 Thanks!
        GYM recently posted…GYM Dividend Income Update September 2017My Profile

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