Another month, another dividend income report! February flew by like it was nothing – it felt a couple of days short actually. Work was busy as always, I’ve been under the weather for a couple of days, and I experienced a ton of fun activities with friends. On top of that, a steady stream of dividends are slowly becoming a recurring part of my life. That’s why writing these posts are by far my favourite thing about keeping this blog.
Even though I’ve been less active in our community over the past few weeks than before, I still very much wish to log the journey towards financial independence and inspire others to join me. If my recent net worth increase hasn’t convinced my entire readership yet that saving and investing is the way to go, I surely hope that my growing dividend income gets you guys excited to follow in my footsteps – and please do try and overtake me.
Of course, don’t expect any miracles. Building a passive income stream takes time and dedication, two things that I’ve got in spades being only 25 years old, and being a big believer of basic mathematics and the power of compounding interest. Currently my portfolio throws off only a tiny amount of money, but each penny deposited in my account feels like a major achievement. So let’s get to it!
For february I’ll be presenting you guys a longer table than last month because more companies decided to reward me a share of their profits. Nothing feels as good to a shareholder as being rewarded with a small paycheck for believing in a business model. So for that reason I’m a happy camper.
All dividends below are listed in Euros, and are after foreign withholding taxes and a 25% income tax levied by the Belgian federal government.
|02/02||DE||Deere & Company||2.32|
|02/02||VZ||Verizon Communications Inc.||6.05|
|17/02||PG||Proctor & Gamble||3.17|
If February had a nickname, it definitely would be the Telecom month. American telecommunication giants AT&T and Verizon forwarded me a hefty dividend, together with British and pan-European mobile provider Vodafone. While I was able to cover just my Google Play Music subscription in January, this month my dividends also covered my internet bill.
Amazing, right? €27.69 worth of real and tangible purchasing power through past decisions not to spend my entire paycheck, but rather to save a large majority of it and invest the difference.
Slowly the graph below is moving to the right more and more. After having received my very first dividend in September of last year, the months and dividends are now gradually piling up. As such, it won’t be long until I can provide you guys with the first year-over-year comparisons to show off the growth component of dividend growth investing.
Nevertheless, I’m happy with where I’m currently at. Considering that most of my holdings have a quarterly payout scheme, it’s impressive to see February’s income shoot up by a little over 206% from three months ago. As I continue to shovel money in the market, future dividend income is likely to experience maintained growth for the foreseeable future.
My goal for 2015 is to manage a passive income stream through dividend growth investing of at least €500. At the moment I’m a long way off to achieve that objective, but the year has just started of course. On top of that, most of my European holdings don’t pay a quarterly dividend, which is why I expect to make big strides towards the 500 mark over the coming weeks.
Because dividend growth investing is very much passive in nature, there’s not much I can do to crush my goals faster than continue to invest my salary’s surplus into high quality and strong value business like I have in the past. That’s why I have added Hoffman-La Roche (VTX:ROG), the biggest Swiss health care and pharmaceutical company, to my portfolio today. With it’s upcoming ex-dividend date I’ll also be able to count Roche’s 2015 distribution towards my €500 goal.
I still feel like there are exciting times ahead for us dividend investors, just like when I first started out not too long ago. Month after month the incoming dividend payments show me that financial independence isn’t just a far off dream but rather a definite possibility. I hope you feel the same way too and that February was another hallmark month in your progress towards financial freedom.
Please let me know in the comments if you feel like February was another step in the right direction for you. The only thing pushing me forward more than seeing my own passive income jump, are encouraging and inspirational reports from others! Thank you for reading.