Monthly Dividend Income: October 2014

My favorite post to write each month. :) This is when I get to share all my dividend income for the previous month. These dividends are what I’ll eventually use to live off of when I become financially independent.

I share these figures along with monthly income/expenses to not only track my progress towards financial independence but also to hopefully show others that it is possible to get started with dividend growth investing with a low income. The hardest part is weathering the first few years of small dividend payments and allow the compounding snowball to get rolling.

Here is October’s dividend income from my 3 stock investment accounts: Roth IRA, Loyal3, and Taxable Brokerage. I automatically reinvest all dividends in my Roth and taxable brokerage and selectively reinvest dividends, combining them with fresh capital every month or two, in the Loyal3 account. Note: I recently made the switch to dripping all dividends in my taxable account but due to a broker error, the change didn’t end up taking effect until the beginning of November. Mostly my fault, as I didn’t monitor my portfolio too closely over the month of October.

Roth IRA

Coca-Cola (KO): $4.40-reinvested into .105 shares @ $41.91 per share.

Realty Income (O): $2.89-reinvested into .067 shares @ $42.89 per share.

General Electric (GE): $5.91-reinvested into .233 shares @ $25.38 per share.

Loyal3

Coca-Cola (KO): $8.08

Dr. Pepper Snapple (DPS): $1.38

Taxable Brokerage

Altria (MO): $3.64

Phillip Morris (PM): $22.00

Realty Income (O): $19.96

General Electric (GE): $1.76

October Total: $70.02. As expected, October was a lighter month for dividend income but still managed to increase the amount over last October from $23.99. With two months left in 2014, I’ve now received $696.43 in dividend income and estimated forward 12 month dividends now stands at $1,131.29.

 

Full Disclosure: I am long all stocks mentioned. This post is not intended to be a buy or sell recommendation for any stock mentioned and is for entertainment/educational uses only.

How was your October for dividend income (or portfolio gains for any growth investors)? Share below with a comment and thanks for reading!

28 comments

  1. Congrats on the dividend income, SFZ. Thats $70 you didnt have to work for…and will help you in compounding your returns.

    Best wishes
    R2R

  2. Keep up the good work. I always love reading these dividend income updates from around the blogging world. Your YOY growth is amazing as well. We have quite a few similar names as well in our October dividend income lists. Thanks for sharing and look forward to your next update ans a strong 2014 finish.

  3. Hi, Starting from Zero.
    I’m just starting to dive into your website, but I’ve been really impressed so far. Nice job on the dividends for October. I’m just starting my blog, but have been reinvesting the dividends directly into the security that creates them since the start of my investing career. I may consider changing this strategy at some point, but its a good strategy for now. Thanks for posting and best wishes for continued success.

    Goosemann Jones
    Flight to Dividends Blog

    1. Hey Goosemann, thanks for stopping by and congrats on getting started with blogging. It’s been probably the best decision I’ve made related to investing as it’s a great way to interact with a community of like-minded individuals.

      Reinvesting all dividends is an awesome plan. I started doing the same thing here recently just to keep things simple and to immediately let the dividends start to compound. Like you, I’ll probably look to change this strategy when my income rises to the point where pooling a month or two of dividends would allow me to make a normal sized purchase.

      Best regards,
      SFZ

    1. Hi B! There are definitely many different companies that you can use to construct a successful dividend portfolio. Always enjoys looking at what others are buying to help get new ideas.

      With regards to discounts for dripping, there are some stocks that allow you to buy them at a discount using an actual DRIP plan through a transfer agent but I don’t think it’s too common. I know Aqua America is one popular utility stock that still offers this. My DRIP is set up through my broker so the dividends are just reinvested at market prices. Great question!

      Best regards,
      SFZ

  4. SFZ,

    Congrats on the great month. Even though you may think it was a “down” month, a 191.8% increase from last year is nothing to sneeze at. It really shows your progress and gorwth as an investor. I can’t wait to read this article next year to see what your growth rate is. Hopefully it will be another 3 figure increase.

    Bert, One of the Dividend Diplomats

    1. Thanks Bert! Wow, when you put it in terms of a %, I guess it wasn’t that bad of a month after all. I think the key to these types of increases this year was just getting more focused on stricter monthly budgets, freeing up more capital to invest on a regular basis. Hopefully that continues.

      Best regards,
      SFZ

  5. SFZ – Doing good…one step at a time. The key is taking steps forward and not backwards and you definitely continue to do just that. Keep it up.

    Wishing you continued success on your personal journey! AFFJ

    1. AFFJ, exactly. Just gotta keep going at it one step at a time. It’s easy to get caught up in month to month updates or short-term market noise, but as long-term investors we have to continue remembering that this is a sprint, not a marathon, just have to stay focused and committed to the strategy.

      Thanks for stopping by,
      SFZ

    1. Haha, thanks AG! Ironically none! Haven’t drank soda regularly for probably 5 or 6 years now but that doesn’t prevent me from really liking the Big 3 soda stocks of KO, DPS, and PEP.

    1. Thanks SA Dividend! Even though I’m primarily a dividend growth investor, having such a low fee structure makes the TSP an excellent choice for federal employees. I might as well take advantage of it while I can.

  6. Good stuff man! October is always weak for dividends; especially with the contrast of how good September usually is. I’ve been looking at Casinos lately. There’s been a lot of shenanigans going on and their stock price is dropping, providing some attractive dividend yields. I would like to get WYNN or LVS at a 4% yield. They are on my watch list.

    1. Thanks Brandon! I haven’t looked at casino stocks before, will have to take a look. Looking at the key stats on yahoo finance, it looks like both have pulled back quite a bit recently providing some nice entry points. will have to do some more research.

      Best regards,
      SFZ

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