Welcome to the 3rd dividend business income update of 2017!
Now that I’ve blogged the complete totality of my dividend income business over the past 3 months, it’s easy to see that I’m operating a small, early-stage business.
With that said, Reverse the Crush is committed to growth.
Since the end goal is to reach a minimum average dividend income of $2,000 per month, RTC has been aggressively adding to existing positions where there is opportunity.
This happens to be occurring in one of the higher yielding utilities positions held within the RTC portfolio.
An opportunity has presented itself, and it has provided a window to acquire a larger position in a stock that is yielding nearly 5%.
On the other hand, this has led to the August-November-February-May months being my lower income producing months.
Though, the only thing that really matters is the bottom line, which is reaching FI. I aim to select the investment that contributes to the bottom line the quickest each time I make a purchase. However, that doesn’t mean I will sacrifice on quality.
Furthermore, a good example of the quality concept is picking the investment with a 5% yield over an 8% yield because the 5% stock offers a 10% annual dividend growth rate.
If you purchase a stock that offers that type of dividend growth trajectory, you will be earning an 8% annual yield in no time. Plus, you’ll have enjoyed all the capital appreciation that comes with dividend raises over time.
Just this past week I had two equities give me raises. As I mentioned in my first dividend income report, I’m not gonna name equities in these dividend reports, however, I do provide real numbers.
In my opinion, the growth offered by stocks that consistently raise their dividends is a grossly under-appreciated component of investing.
Seeing that my goal is to create a business that generates a minimum of $2,000 monthly, I am fully aware that it will take years to reach. However, through having a consistent purchase plan, through dividend raises, and since I’m creating an online business, there are plenty of opportunities available that may allow me to reach FI sooner than I think.
Now that the first 3 months of building a baseline income are out of the way, I’ll be looking to build larger dividend payments during the coming months. The goal is to build ownership positions in quality companies to create payments large enough to DRIP.
That said, below is the dividend income business report for August 2017:Dividend Income Business Update #3 — August 2017 #investing #dividends Click To Tweet
How the Dividend Income Business performed in August 2017
Total Income from dividends in August — $4.59
Total dividend Income in 2017 —$15.20
Monthly average dividend income earned — $1.27
Increase over July 2017 (MOM) — $1.75 (-27.60% decrease)
Dividend Income in August 2016 — $45.49
August 2017 YOY comparison — Decrease of 89.91%
Total dividends received all time (since 2012) — $1,329.51
How many businesses distributed income in August 2017 — 2
Business Analysis and Closing Thoughts
Although the RTC portfolio experienced decreases in the MOM and YOY categories, I am expecting the first YOY earnings beat in September 2017.
It will be the first month that reflects the growth of the frequent purchasing strategy being employed. Since I’ve already published that the portfolio brought in $4.27 in June 2017, the September income will provide insight on the type of growth that can be expected on a quarterly basis.
Moreover, after next month, double digit months are coming. Double digit months mean triple digit annual income. I estimate that it’ll take a maximum of 3 years to log my first $1,000 dividend income year. However, once the snowball gets rolling into the quadruple digit annual payments, a lot more opportunities will begin to become available.
Thank you for reading the dividend income update for August 2017! Look out for the September report and enjoy seeing Floyd Mayweather get the W tonight if you plan on watching the fight.
Questions for the readers: How was your August dividend income? Do you have a gap month where your dividend income is lower?