Forward Dividend Income Projections for January 2018

Dear Fellow Dividend Investors,

Welcome to the forward dividend income update, which will outline annual, monthly, and quarterly dividend income projections for 2018.

Although the RTC Dividend Business is privately owned, the owner has been publishing public income reports over the past 7 months to document business growth.

Furthermore, the owner plans to publish reports until dividend income has exceeded all living expenses.

Even after financial independence has been achieved, the owner plans to open new brokerage accounts that are funded completely by dividend income alone.

To dive even further into my vision for the future, the dividend income reports will still continue after FI.

It will become a new challenge to grow the dividend income through only earning dividend income. And just imagine what reflecting on 20 years of dividend income reports would look like…

Nevertheless, the RTC portfolio now generates at least $234.92 worth of passive dividend income per year.

And that figure doesn’t factor in the bi-weekly purchases that I plan on making.

Since I was able to build a $234.92 business in under a year, the target for next year is to generate at least $425, as I committed to in my financial goals for 2018.

I believe this is a very reasonable target based on the amount of dividend income added in 2017.

The same savings rate as last year would double the dividend income, and that’s not including the dividend raises from companies I already own.

There are already thousands of dollars working for me that will provide even more money to reinvest this year!

Here’s a closer look at the numbers:

Forward Dividend Income Update for January 2018 Click To Tweet

Forward Annual Dividend Income as of January 4, 2018

forward dividend income

Key Numbers

Number of businesses owned:

  • 2 new income generating assets were added to the business since last report.

  • The top 2 positions in the chart above are the same position in different accounts.

Total annual dividend Income projected for 2018: $234.92

  • Earning $234.92 in 2018 would account for a 304% increase in profits compared to 2017.

  • Annual dividend income is up $90.77 since the last report which is an increase of 62.97%.

Average dividend income projected per month: $19.58

Projected Bi-weekly dividend income: $9.04

Per day: $0.64

I reported just over $144 of dividend income in the 1st annual dividend income report, so I am very pleased with the growth rate over the past two and one half months.

The RTC portfolio will now deposit $234.92 at minimum into my account during the course of 2018.

It would be extremely easy to withdrawal that cash to spend, and I wouldn’t even have to subtract from the principle.

However, the RTC Dividend Business is the type of business that sticks to a plan.

Consistent savings contributions and frequent purchases have allowed annual dividend income to increase by $90.77 over the past 2 months, which was a 62.97% increase.

Monthly Forward Dividend Income Outlook

forward dividend income

Although it’s nice to see percentage improvements, it’s even better when you break it down into payments.

After the last 2 months of increases, there are now 8 months that pay more than $20 per, which is a steep improvement over the last report.

Be that as it may, I’ve reached a point where my thoughts on investing are advancing beyond my cash flow machine days. Not that I no longer want to build a cash flow machine, though – I just want to build a cash flow machine with more payments and more companies now.

I had stated previously that I planned to hold 6 companies or less, but now, I’ll ultimately own around 30 businesses for more payments and diversification.

Quarterly Dividend Income Update

quarterly dividend income update

Total dividend income (October to December 2017): $34.66

Compared to Q2: Up 80.43%

Income received in 2017: $58.14

The quarter over quarter rate of growth slowed down slightly compared to the last report, as expected.

Approximately $15 of annual income was added each month in October and November. But the bulk of the increase occurred in December 2017, as $57.59 was added. This figure represented 63.45% of the entire amount added since October.

Expenses

Total cost to Acquire income: $153.45

Profit Margin: 49.16%

I know that a lot of folks are against paying commission fees. However, I don’t mind paying if it’s a lower rate.

Just a few years ago it was standard to pay $28.95 per trade, so I would routinely save up at least $2,000 for each investment.

Soon after, the standard rate dropped to $9.95, and I started making purchases of $1,000 per investment.

Now, I’m paying a low rate of $4.95 per trade, which means I made a total of 31 trades during 2017 ($153.45/$4.95 = 31).

Although it would be easy to lower the commission fees by less frequent purchases, I think income investing is underrated.

Furthermore, I paid less fees than I would’ve by investing in a typical mutual fund based on the amount of money invested.

And from a standard business perspective, it cost $153.45 to acquire $234.92 worth of annual income – a profit margin of 49.16%.

Frankly, there are not many businesses capable of generating a 49.16% profit margin.

Ultimately, the amount of commission fees paid is nearly a fixed cost because I only get paid 26 times per year.

Moreover, the amount of fees will not increase much going forward, and the cost to acquire will be outpaced by dividend raises.


forward dividend income

Concluding Thoughts

There are many different investment strategies that work for different investors, but the key is to find the investment strategy that is most appropriate to your lifestyle and temperament.

In my personal opinion, the best investment strategy is dividend income investing, because it’s progressive and it helps me save money.

Most people find it hard to save anything at all, but the RTC Dividend Business already generates over $234 of automatic savings.

Furthermore, that $234 per year will eventually grow to $234 earned per month in a matter of years.

In turn, I’ll have hundreds of dollars more per month feeding my cash flow machine.

More importantly, I’ll be able to fulfill my desire to invest often by creating more payments coming in.

And quite honestly, I need to get more cash flow coming in! –  I’m becoming addicted to saving and everything else is seemingly a detractor.

It’s not that I just want to hoard up cash. It’s that I’m always anticipating the next opportunity to add to the Dividend Business.

In short, Dividend Investing is the most fulfilling way to spend time that I know of, and I’m a closer to FI with every dollar added.

Questions for the readers: What does your dividend business stand to earn in 2018? Did you make a lot of progress in 2017? 

6 Comment

  1. I made big progress in 2017 since I switched my focus to dividend paying stocks. It feels great to see the money coming in:)
    I like the way you put it all together in your post, keep it up!
    Where do you pay $4.95 per trade?
    Caroline recently posted…Income, Expenses And Goals Update – December 2017 (Part 1)My Profile

    1. Thanks for commenting, Caroline! I completely understand how rewarding it can feel to have cash rolling in, even if it’s a smaller amount. And thanks for the support! I used to pay $4.95 per trade at Questrade, but I have since moved to another broker because of a cost advantage provided by an affiliated company with my employer. I try not to mention much about the company I work for on the blog, but hopefully that explains how I pay $4.95 lol. Thanks for stopping by!

  2. I totally get it, thanks for the info. I like having all my finance under one roof but I pay $9.95! I hate resolutions but maybe I will make one…to switch to a $4.95 broker:) Thanks
    Caroline recently posted…Income, Expenses And Goals Update – December 2017 (Part 1)My Profile

    1. Thanks for understanding! I like having my finances under one roof too for convenience. But I’m with 2 financial institutions at the moment. To the best of my knowledge, I think Questrade is the only broker with that low of rate unless you make a lot of trades per quarter. Have a great day!

  3. Steve says: Reply

    Nice work Graham, Dividend income is the best way to build passive income. I usually purchase/trade on a quarterly basis as it keeps the cost down and I can redistribute my dividend income.

    1. Hey Steve,

      Thanks for the comment! I agree that definitely income is the best way to build passive income. Anyone can do it and it has a low cost to start. And thanks for sharing on your purchasing strategy. I’m purchasing around every 2 weeks right now, but I may consider quarterly investments down the road. Take care! 🌞

Leave a Reply

CommentLuv badge