May Dividends

I wrote my goals in January, I was so naive. Seriously check out what I wrote for the dividends goal. I actually had the nerve to write that I thought it would be easy to make $200 from dividends in 2012.

I have been posting these monthly updates since I got my January dividends. I got $7.57 in dividends that first month. I thought that was awesome. I thought that number would go up every month by a fair amount and I would soon be pulling in a great amount for anybody let alone a student. Again, pretty naive. This month I got $7.60. Luckily this is as low as my monthly total will ever be. I have a stock that pays quarterly so four months of the year my total is higher than this.

With this month’s dividends I have received $42.48 this year so far. Dividing that by 5 months that have passed and then multiplying that by 12 to get an annual estimation I am on pace for $102. That total is inching upwards but is nowhere near my original goal.

I am not worried about reaching the goal. I know that I set that goal far out of reach. But I do look at the monthly dividends of others like My Own Advisor and $25,000 Dividends and can’t help but fantasize getting as much as they do, and some day getting enough to pay for everything I will ever need to buy. That is far off yet but every month that dream gets a little closer.

These posts are my form of trying to inspire others to take joy in dividends like I do. And I like having a place to track my progress. Already I can go back and look at January and see my lowest monthly totals are already three cents over January’s dividends. Next January I will hopefully get to look back and laugh at how small of a month that was.


Comments

May Dividends — 9 Comments

  1. Well if you want more dividends shouldn’t you buy more dividend-paying assets?

    I didn’t point this out in the past because it seems like a painfully obvious flaw in your plans, but seriously, you have to expect that the easiest way to increase your dividend income is to get more sources of dividends.

    I think my mutual funds pay $100-$150 a year in dividends (it only comes out once a year, and is obviously more every year so I’m just guessing for 2012), and when I started 2012 I only had one other dividend paying stock that was probably going to make me $60 for the whole year… so I bought another, and that brings in an additional $30 per year.. and then I just bought another last month, so that will generate 2 dividend payments for the remainder of 2012… and I think I’ll buy another in August or September and that will pay something before the year ends.
    Dividends are small but I reinvest them, so usually when I invest in a new company I’m definitely able to get an extra stock or two because of my payout from other stocks. It’s great.

    I just don’t know why you thought you’d meet $200/yr without doing anything for it.

    • I do not know if I said something to make you think I wasn’t investing in dividend paying securities, but I must clarify that I am. I have two mutual funds which pay monthly that I DRIP, I have an ETF that pays monthly that I bought in January, I have twice bought shares of Suncor which pays quarterly and I recently bought an index fund which also pays quarterly. In addition I have an order in for a dividend stock I am very excited about and most of my summer pay has been going into my investments. One of the criteria I have for investments is that the investment pays a dividend. I believe it is an indicator of a solid stock or fund. I do not write about the things I buy because I do not want people to think my actions are advice, let alone advice worth following.

      I know that I need to buy more dividend payers to get more dividends, and that is what I am doing. But the stocks I buy now I am hopefully never going to sell, so I have to buy investments that are good for the next 50 years, not just this year. I could buy a REIT that yields 10% and get to my goal pretty easily, but the goal is just a fun sub goal of the real dream of financial independence years down the line.

      It looks like your dividends are beating mine, congratulations. I saw you now get dividends every month, which is really awesome. Since your dividends are so close to mine, I am going to make this a friendly competition, even if I am the only one keeping score. Feel free to ignore the game, I am just competitive by nature so it might encourage me to save my money when I am looking at new running shoes or something.

  2. I started with no dividends as a “poor student” as well. I’ve got many years on you…in my late-30s now. If you keep the pace, keep up the discipline, you’ll be rocking at my age :)

    I’m inspired by other dividend investors, hauling in $20,000+ per year. They are retired, but they needed to start somewhere. As did I, as did you.

    Thanks for supporting my blog and continue to check in often!

    Mark

    • I consider you the runner I am trying to catch in the dividend race. You are well ahead of me but I am working hard to gain ground.

  3. That fact that you are even getting $100 a year I think puts you in a whole other playing field than 99% of the population. Your dividends WILL go up. Of course, you know that. I have the same problem as you however in that I look at some of the bigger dogs who have been investing for a few more months/years than me and want the kind of scratch they are pulling in. Stay the course my friend. When you graduate and get that first job you’ll see a giant leap in capital you have to invest. Pretty soon in the not too far future other blogs will pop up saying “Man! I wish I had the dividends Poor Student is making!”

    • Thanks a lot, that is one of the best comments I have gotten yet.

      I guess I have a sample problem because I only compare myself to other bloggers who tell of their dividends (the only sample available). Some of the students I talk to do not even know what dividends are so I know I am ahead of them. But I have always tried to compare myself to the best to push me forward so I will always have this problem.

      This is my first year so I can’t wait to see how much improvement I have next year.

  4. Great job! Having a goal is the first step, doesn’t matter if you aim too high and miss at first. At least you have a target in sight, so you can adapt. There are so many others who don’t even have a plan, or goal!

    I’ve collected a little over $100 so far this year in dividends (my first year). May not be much for someone my age, but hey, I’m still pretty thrilled with making incremental progress ;)

    • Thanks for the encouragement. I know that there are worse things than setting a very ambitious goal and not achieving it. Still disappointing though.

      That’s great that you are going to collect more than $200 in your first year. And the both of us will have that growing every year.

  5. Pingback: Replacing Work Days To Achieve Financial Independence

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