March Dividends

If you go over my goals, you will see some that might stick out. I figure that there is no point in setting a goal if it is something that you would accomplish without setting that goal. So the goals that seem out of reach are not considered out of reach by me. There is an exception though. My goal of being paid $200 in dividends during the year. This may not sound ridiculous, but it increasingly is slipping out of reach. I knew this though after my January dividends came in.

In January I got $7.57, in February I got $7.57. Seeing this led me to despair. I knew I was naive to expect to make $200 when I was only on pace to get $91. And this was with just about all my available money invested. I now focus less on this goal of getting to $200 because I do not need this money at the end of the year, I need it in 15 years or longer than that. So getting dividends now is not my main concern, but I still really like meeting my goals.

With that in mind I am pleased to announce that I received $12.15 in dividends for the month of March.

My mutual funds increased their dividends (by a penny each) to be $3.79 this month. These dividends get reinvested to buy partial shares of the mutual fund.

The joy of mutual funds’ dividends increase so modestly was offset and then some by my ETF decreasing its dividend. It now only pays 74 cents per share per year, down from 83 cents. So the ETF only paid dividends of $3.41 this month, down from what I expected to continue being $3.80 every month.

The reason my dividends were so much higher this month over January and February is because I got my first dividend payment from my first individual stock purchase. It pays quarterly so this increase will not be repeated next month, but the extra income is very welcome. It actually would have been higher but I did not buy all my shares at once so I missed out on receiving dividends from 36 shares of it.

I write these because I think that seeing the numbers makes it easier for someone to get excited about dividends, or just investing in general. I started getting serious about investing when I started this blog, so one could see the journey from the very start. So far I have received $27.29 of dividends this year. That is almost ten dollars every month for doing nothing. All it takes is keeping your money somewhere slightly different, really just a few clicks on a computer.

I am now on pace for $110 for the year. This is subject to change, from dividend changes like I have already seen, from my other shares of stock paying dividends and from any future investments I make this year. I am excited to see how close I can get to my goal now.

 


Comments

March Dividends — 16 Comments

    • You can’t influence it after it is invested. You are dependent on what the company decides to pay out. The ETF I am holding cut their dividend by 9 cents a year without warning to me, but they are also dependent on the dividends paid by the companies it holds. Mostly I think you just invest and hope the dividend grows. But you can look a lists of companies that have grown their dividends for many years, and this is close to being assured that your dividends will increase.

  1. Thank you! That’s what I thought but I am an extreme novice in this aspect of finance. So really it’s not your own shortcoming that it’s coming up short. $110 isn’t a small amount of money. Can’t feel too bad about it.

    • Yeah it isn’t too shabby. But your investments, while they don’t pay dividends, they do pay you income. So you are still ahead of me, bu hopefully I am catching up.

  2. You have made it seem easier for the readers. I would suggest you to let the readers know that one does not get the dividend for doing nothing. That the real work is the painful research before purchasing the stocks that will give consistent dividends in the long run.
    Don’t you tell me that you did not do any research before purchasing those envious stocks. Kindly share with us when you get a new one so that we can follow and make some dollars.

    • I will try to convey the point that one needs to research their purchases a lot before they choose a dividend stock.

      I did research my stock pick, and my big investing mistake so far was buying something without fully understanding. That has come back to bite me.

  3. Dont’ be discouraged by a smaller pace of dividend income compared to the goal. Just make sure you keep putting a little more money regularly into dividend paying stocks. The key is “regularly”, even if it is only $100 per month. With additional investment your portfolio will grow and so will the income from it.

    An excellent book was written on this subject by Derek Foster (his site http://www.stopworking.ca). Derek retired at the age of 34 just by buying dividend-paying companies with money he saved since his school years. He paid himself $200 per month, no matter what, even if it meant getting a second job. When he could not find the money, he knew he owned it to himself and made-up the shortfall next time. Now he travels, writes books and gives lectures on how to become financially free.

    Being 34 probably seems old to you now, but we are all not getting any yonger. Retiring at 34 from portfolio income is way better than working paycheck to paycheck until 65.

    • I do not have the money to put away money regularly. I invest when I have saved up enough money. I like investing at least $1000 to minimize the impact of commissions. I am planning the same thing as Mr. Foster, except I would at least like to be financially independent by 30. I would likely work for a few years after that anyway however. I am hoping that the plan I already have in place is starting to work and that my progress to my goal is slow but sure.

    • I like the look of your site. While I do not have the funds to be a speculator and my plan doesn’t really have room for speculation, I do find it interesting. I keep track of lots of stocks that I thought would make good investments based on an analysis system I am trying to work on. I will definitely be checking out your site. Thanks for stopping by.

  4. It sure is a nice goal to be independent by 30. Best of luck on that journey; I truly wish you will succeed.

    As for $100 per month – that was a suggestion on savings, not investing. You can accumulate a bit before making a purchase to save on commission, that makes total sense.
    However the savings need to be regular in my opinion, otherwise it is easy to slip and save less than you otherwise could have.

    • My income is sporadic but I think it averages to more than $100 per month luckily. I don’t get money very often during the school year, but when I work I make sure that lots goes towards savings. Thanks for the luck.

    • I like to view dividends not as the basis for my decision making, but they are a factor in the decision, not just a bonus to me. I have been checking out cover calls a little bit but I think I need a better understanding before I begin using them. Thanks for the advice.

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