Before when I was thinking about my goals for the year I decided that $200 was a reasonable amount of dividends to receive for 2012. Well, I now look like I am going to fall short of that.
I have 3 dividend paying equities right now, 2 mutual funds and an ETF. A pleasant surprise I saw this morning was that the ETF, which I thought paid dividends quarterly, pays dividends monthly. I prefer this because I would much rather have the money in my trading account should I need it than have to wait three months.
But when I added up the dividends for January, my mutual funds paid $3.77 combined and my ETF paid $3.80. That is $7.57 of dividends in January. At this pace I would make about $91 in the year.
Now this pace is going to pick up considerably. The mutual funds had been paying much more dividends than they did in January so the contributions from the mutual funds will increase and help out towards the goal.
In April I receive a pretty large tax refund which is going straight into a dividend paying stock or ETF. So I will be able to get more from the new purchase.
To be honest, I picked the $200 without really looking that deeply into what it would take to accomplish that. Looking at it now, I see that at a generous 4% yield I would need $5000 invested all year.
I am still going to pursue this goal hard. With my tax refund I should have at least $3000 invested by the end of April. I also have money in a savings account which I have been reluctant to invest, but the logic of the dividend is starting to outweigh my caution and hesitation.
My year’s goal is not going to change after just one month, but I do realize that $125 is more reasonable. Really all it means is that I am going to have to try a lot harder to check this goal off.