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
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?