Today being Labour Day or International Worker’s Day, is there a more suiting moment to review free-of-work income? To me there certainly isn’t. That’s why I’d once again like to share my passive dividend income with you guys. I do this every month for the sake of transparency, but also to keep myself motivated.
Even though the markets have been all over the place in April – it truly was a rollercoaster ride for my portfolio – one certainty remained: dividends. They form the bedrock of my investing strategy and hopefully also my financially independent lifestyle once I’ve accumulated enough assets.
I know that building a portfolio that throws off enough passive income to cover your living expenses takes a long time, but that doesn’t botter me at all. What’s more, it drives me to push harder and save as much as possible. I want to make time my own again, so that’s why I’m happy that progress has been stellar so far.
Think about it. I started buying individial stocks back in August of last year and already I crossed the €100 dividend income mark for any given month in March. And it doesn’t stop there, of course. Profit distributions from the companies I’m a shareholder of continue to roll in on a weekly basis.
While I was on a city trip to enjoy Dublin’s literature museum, art history gallery, and its beautiful surrounding countryside the past few days, my broker notified me of two cash payments hitting my account. I could be on a holiday, I could be asleep – it doesn’t matter. Unlike myself, money that works for me doesn’t need to rest, so these dividends will keep coming for as long as I want them to.
That’s why I hope that these dividend income reports motivate you to put your own money to work as fast as possible. If I can do it, you can too!
After last month’s massive income, I could reasonably expect April to come in a little lower, and that’s perfectly fine. Even though it would be fun to receive over twelve separate dividend payments each month, over time twelve will start to sound like an insignificant number if you continue to save and invest.
Besides, I’m happy with any amount of dividend income that inches me closer towards my €500 goal by the end of the year. Would you say no to a free meal? I wouldn’t.
All dividends below are listed in Euros, and are after foreign withholding taxes and a 25% income tax levied by the Belgian federal government.
|01/04||KO||The Coca Cola Company||3.25|
That’s five businesses I’m a fan of that rewarded me with a piece of their profits, simply because I remain invested in them. As you can see, dividend income diversification remains relatively low, but that’s to be expected with a relatively new portfolio like mine.
Coca Cola (NYSE:KO) jumped ship again in its quarterly payment, while British distiller and spirits distributor Diageo (LON:DGE) and German reinsurance giant Munich RE (ETR:MUV2) appear on my dividend income list for the first time. Together with GlaxoSmithKline (LON:GSK) and General Electric (NYSE:GE), already two regulars at this point, these five companies made me almost 52 Euros.
Compared to my paycheck such an amount might not seem like much, but this month’s dividends actually covered my two-way plane ticket to Dublin. Simply amazing!
As my portfolio continues to grow, its passive income stream is likely to reach new heights on a regular basis. The trend line trailing three months in the graph below makes that tremendously clear. Although March’s dividends heavily skew the line upward, the fact that the graph’s tail keeps the same direction in April makes me a happy camper.
The strong growth component of my dividend income is no surprise since many European dividend growth stocks stick to an annual or semi-annual payment. Still, when taking a quick look at the quarter-over-quarter growth there’s tangible and lasting progress: from just €2.56 in October of last year, to €8.66 in January and €51.99 this month.
That’s a 600% QoQ jump for April when compared to January! If only we could keep this type of momentum going.
The dividend income for 2015 is currently sitting at €191.09 or 38% of my annual goal. With four months in the books for 2015 that means I’m slightly ahead to reach €500 in dividends. And the best part? That money will be put to work too, thus increasing my future income at a faster pace.
May should provide the last major boost to my passive income stream since my remaining European holdings will forward their annual payout. Real-Estate Investment Trust Home Invest Belgium (EBR:HOMI) should deliver a dividend payment close to €50 all on its own, for example.
Because I used my April paycheck to acquire 10 shares of American-Belgian-Brazilian Anheuser-Busch InBev (EBR:ABI or NYSE:BUD), I’ll also receive a piece of the world’s largest brewer’s profits next month. I furthermore deployed my holiday bonus to initiate a stake in Belgian movie theatre chain Kinepolis (EBR:KIN), which also pays a dividend in May.
Even though these two companies trade for a fairly high price, which is no surprise in today’s market, I’m sure they’ll continue to do great in the future and thus reward me as a shareholder. Because of their great dividend history my annual dividend income jumped by another €50, quite possibly for many years to come.
Thank you for reading and for your continued support. And be sure to let everyone know how your dividend income turned out this month in the comments. Do you feel like you’re on the right track?