Dividend Update: January 2015
For me, the highlight of dividend growth investing is tallying all of my dividend payouts and raises at the end of each month. I aim to invest in businesses that grow their dividends every year despite the ups and downs of stock market prices. There’s no denying that the strategy works when I look at my Dividend Payouts rising steadily over the years. One day, this cold hard cash will grow large enough to pay all of my expenses, and I will finally claim financial independence.
This blog is living proof that you can start small and over time grow an ever rising stream of income to use for all of life’s adventures. While this quarter is the lowest of my dividend payouts, I still pulled in $56.86 from 5 different businesses in January and I reinvested all of my dividends to accelerate their growth. Some are through a dividend reinvestment plan and others I pool together with new investments. Here’s what I did with my dividends throughout the month:
This was a solid start to the year. My $56.86 was a 3.42% increase over last quarter’s $54.98 in October. My payouts rose by 331.41% over last January’s $13.18. This shows that if you make consistent contributions when building a portfolio, you can achieve eye popping income increases over the first few years. January was only the 19th month I’ve received a dividend payment. Here is a detailed look at my Dividend Payouts:
My goal is to average $170.83 a month in dividends throughout 2015. That will put me at a total of $2,050 by the end of the year. In 2014, I barely passed my goal of $750 when I raked in $773.22. I’ve got a long year of dividend collecting ahead according to this chart:
The most important part of my strategy is dividend raises. In January, three separate businesses gave me a raise:
A.O. Smith (AOS) is now my largest percentage dividend increase to date at 26.67%. The Kinder Morgan Inc. (KMI) increase might look light, but the year over year dividend increase is 10%. Realty Income (O) is also higher year over year with dividend growth of 3.75%. Those were some solid dividend raises that increased my 12 month forward dividend income by almost $10. At the end of January, my forward annual dividend income stood at $1,483.30.
I also track my lifetime dividends received amount which isn’t even two years old at this point. When I see the income’s constant path upwards, it get’s me excited about saving and investing as much as possible to gain even more dividends!
I have a lot of ground to cover in the year ahead, but I’ll be fighting hard to meet my goals the whole way.
How was your January? What was your dividend growth?
Photo By Alexandr Schwarz http://unsplash.com