Dividend Income Business Update #3 — August 2017

dividend income business

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
dividend income business
Dividend Business 2012 to August 26, 2017

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

dividend income business

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?

14 Comment

  1. Interesting to see your dividends grouping into the same quarter. I worried about the same thing, but as more stocks are accumulated payments will naturally spread out. Having said that, my last purchase (greencoat 5% yield) pays quarterly which should smooth things out.

    1. Hi Uncle Magnus,
      Thanks for reading and commenting! That’s a great point about payments naturally spreading out over time as you accumulate. I haven’t looked into greatcoat at all but I like the sound of a 5% yield. I hope the investment works out well for you! Take care!

  2. August is a big down month for me in terms of dividends. Next month though will be very nice. I need to spread things out a bit but right now I’m just focused on collecting my favorite companies at good prices. Not so much worried about the pay out date. Good call on the Floyd fight. I’m surprised it went 10 rounds. Conor did better than I thought he would to be honest. Take care dude!

    1. HI Mr. DS,
      Appreciate you taking the time to comment. I’m glad to hear your August and September months turned out to be solid dividend months for your portfolio. Though it won’t be a humongous amount, September will be my first YOY beat of the year. Also, I think your focus is the best way to invest – buying your preferred companies at the best prices. Just this morning I had a chance to add to my August income, but I instead added to the September month because one of my holdings was priced better. Regarding the fight, I gotta admit that Conor did better than I thought too. It was pretty entertaining overall though. Have a great week!

  3. Mr ATM says: Reply

    Hi RTC,

    Nice update!
    I don’t worry about grouping of payout dates . Over the years as I’ve built my dividend portfolio of over 40 stocks, the payout date spread-out has naturally taken its shape where majority of the payments come in during the last month of the quarter and the lesser during the first two months.

    Therefore, I just pay attention to the quarterly income instead of monthly, and focus on buying quality companies at cheaper valuations regardless of the payout dates.

    Happy investing,
    Mr. ATM
    Mr ATM recently posted…A Lesson From History: Market Does Not Go Down In A Straight LineMy Profile

    1. Hi Mr. ATM,
      Thanks for taking the time to leave a comment! Coming from someone that has already achieved financial independence, I really appreciate your advice! I agree that focussing on quality investments first is the better route to go compared to worrying about when the payments come in. As I mentioned in my comment to Mr. Defined Sight, I had the opportunity to put some money to work this morning and I opted to choose the better priced equity instead of the stock that would increase my August income. Thanks for stopping by! Have a great week! 🙂

  4. DivHut says: Reply

    Great update. Always inspiring to see how far your dividend income has come over the years. Keep up the good work.
    DivHut recently posted…Which Tech Stocks Make Good Long Term Investments?My Profile

    1. Hi Div Hut,
      Thanks for taking the time to leave a comment! 🙏🏻 I find it inspiring to see your dividend income over the years too! Though my dividend income is down in 2017, it’s quickly building back in the right direction. Have a great week! 🌞

  5. I love that you’re building dividend income along with your other side-hustles. =)

    Keep it up man and you’ll soon find dividends replacing your income,
    Wallet Squirrel recently posted…1 Easy Way to Monetize A Blog Instantly with Affiliate MarketingMy Profile

    1. Thanks for the support, Andrew! 🙏🏻 I’m looking forward to that day when my dividend income exceeds my expenses. It’s gonna take years of consistency and hard work, but it will be well worth it in the end. I’m excited to watch you build your portfolio and reach your goals too. Thanks for commenting❕🌞

  6. Dan says: Reply

    Thanks for sharing! I’m new to your site but I’m glad I found it. Keep rocking and you’ll see the momentum really grow over time. Got to be patient though! Take care,
    Passive Income Dude

    1. Hey Dan,
      Thanks for the kind words about the blog! It’s true that it’ll require a lot of patience to reach FI, but it will be totally worth it in the end. I’m glad you commented and left a link to your site too. I’m looking forward to following your journey. Have a great week! 🙂

  7. August marks the second month of tracking my divvys. Apparently it is also a VERY good month for me. It will be fun to see how it all turns out when I have long term data.

    Congrats on the dividends Graham! Receiving the tiniest amount of them probably sets you above 75% of the country.
    MrDoublingDollars recently posted…Dividend Income Extravaganza – August 2017My Profile

    1. Thanks for taking the time to comment, Mr. Doubling Dollars! Congrats on the second month of tracking your dividends! I’m happy to hear that August is a big month for you. I’m certainly interested in accumulated long term dividend data too.

      Thanks for supporting the RTC portfolio. I never though of looking at small amounts of dividends like that, but you’re probably right about the 75%. I already can’t wait to share the dividend numbers for September. Take care! 🙂

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