Welcome to the 5th dividend income update, old sport!
In case you didn’t know, dividend income investing is at the very core of my financial independence strategy.
Prior to starting this blog, I spent approximately 3 years building a dividend business that paid more than $424.00 per year.
It’s clear that I’m striving to earn more than that now, but the primary goal is to build a dividend business that exceeds $425.00 annually. That’s my goal right now because I want to best my own target, and I plan on achieving that in 2018.
I’ve been thinking about adjusting the long term dividend income targets as well.
I have been proclaiming that my ultimate goal is to earn $2,000 per month in dividend income. However, I am beginning to ponder the possibility of FI upon reaching $1,500, $1,200, or even $1,000 in dividend income per month.
It may not sound like enough money to survive on, but with no debt, a frugal lifestyle, and the ability to make side hustle money, it’s an intriguing opportunity that I probably couldn’t pass up.
In a worst case scenario, I could sell an asset or get a part-time job.
With that said, these are all just imaginary, motivational thoughts at the moment.
Although I’m still a long way from reaching $1,000 in dividend income, there a small signs that this dividend machine is beginning to work.
Here’s the dividend income update for October 2017, old sport!Here's the dividend income update for October 2017, old sport! Click To Tweet
Dividend Income earned in October 2017
Total dividend income earned in October: $17.95
Last month (September 2017): $8.28
Month over month growth (compared to September 2017): Up 116.79%
Last quarters total (July 2017): $6.34
Quarter over quarter growth (compared to July 2017): Up over 183%
Dividend income in October 2016: $16.37
Year over year growth (compared to October 2016): Up 9.65%
Total dividend income earned in 2017: $41.43
Monthly average in 2017: $3.45
How many businesses paid dividends in October: 3
Dividend Income Update Analysis
I recorded a 2017 high of $17.95 in passive dividend income in October.
Even though it’s not a massive amount of money, it’s enough to buy a 5 piece Chicken Strips with cajun fries from Popeyes (Just saying)…
If Popeyes doesn’t get you excited, at least it’s enough to reinvest.
It’s important to reinvest the dividends to receive compound dividends (dividend income from dividend income).
The reason I make such frequent stock purchases is to acquire assets and DRIP positions that continually buy more assets.
Seeing that I require at least $1,000 per month to reach FI, I must make plans to earn $982.05 more in dividend income as soon as possible.
As the dividend payouts are still not significant, the income increases will have to come from the addition of new capital.
I either have to work harder to receive more money, or I need to cut back and save more.
The realistic approach adds a sense of urgency to your savings rate, and also an appreciation for each dollar of annual dividend income added.
Overall, I’m happy with the 183% progress made over the past quarter.
The RTC portfolio is still small, but there are signs that it will soon become a 24/7 passive cash flow providing machine.
The portfolio is on pace to outperform the 2012 dividend income, which was $55.70.
Although it required 4 years to achieve 424.77 previously, my 2018 goal is to grow the forward dividend income past that mark.
December should provide an additional income opportunity, and I fully expect to employ an extra chunk of capital into the dividend business.
I look forward to sharing the November report, and I can’t wait to share the next forward dividend income update!
Question: How was your October dividend income?