The past couple of weeks I’ve been missing in action in our community. The consistent flow of articles and active engagement on other blogs has dropped to historically low levels because I have been overly busy at work and because of the great weather outside. While that bothers me, I’m glad to report that one thing remains unchanged: dividends.
That’s right, dividend payments keep hitting my account on a weekly basis, thus pushing my passive income ever higher. Although the amounts remain relatively small, one day these dividends will be able to sustain my current lifestyle and as a result cover all my living expenses. At that point, I’ve basically won the Win for Life lottery.
Below you can find a detailed report of the companies that regularly forward a piece of their profits to me. I provide you guys with this information not only for the sake of transparency, but also to keep myself motivated. Indeed, looking back on what you’ve achieved over an extended period of time is a great way to stay the course when you’ve got a long ways to go.
Three months ago I jumped over the €100 dividend income threshold for the first time. It might not seem like much, but to me it felt like a major – and honestly rather unexpected – achievement. Of course, March’s massive jump was the result of annual or bi-annual payment schemes of European stocks, but it still showed me how fast you can get your dividend snowball rolling when you put your back into it.
Let’s see what’s what in June, shall we?
Over the previous five months I have already accumulated a little over €300 in dividends, which is more than half of my 2015 goal of €500 in passive and completely free-of-work income. That’s a rather large sum of money when you take into account that I only bought my first dividend stocks in August of last year. Since receiving my first payment from McDonald’s (NYSE:MCD) back in September, the dividends have shot up nicely as the months have passed by.
Current porfolio yield should come out at about €700 of future dividend income annually already, which is about one third of my monthly salary. As such, I’m rather certain that I’ll crack this year’s goal, not in the least because I’ll continue to save and invest as much as I possibly can to push my financial independence date forward.
All dividends below are listed in Euros, and are after foreign withholding taxes and a 25% income tax levied by the Belgian federal government.
|09/06||JNJ||Johnson & Johnson||2.47|
|22/06||RDSB||Royal Dutch Shell||18.81|
The table above shows us eight payments from eight profitable companies that want to reward their shareholders for believing in their business models. Some of those companies have been at it for over fifty years, while others have only recently adopted a dividend growth policy.
What’s interesting about June’s numbers is the fact that all dividend stocks stick to a quarterly payment scheme. As a result, I’m relatively sure to receive this kind of income every three months for the rest of my life – how great is that!?
In total I made about €55.86 in dividends in June. I expected that number to be higher because I added to my Shell (LON:RDSA and LON:RDSB) position not too long ago, but the French oil giant Total SA (EPA:FP) decided to jump months and pay its dividend in July. Nevertheless, I’m as happy as can be about this month’s result.
The main reason why I’m glad to see almost 56 Euros on the table, especially with Total’s payment date wizardry, is because I managed to grow June’s income compared to March’s quarterly paying stocks. Although the increase is rather small, it shows me that I still have a large impact on the growth component of my portfolio.
Of course, the dividend growth rate of the payments I receive are nice, but at the moment it’s still up to me to provide the main force behind my future dividend income. That’s why I’ll continue to save and invest as much cash as possible over the coming months and years, even with the European stock markets being under strong pressure from the financial crisis in Greece.
As you can see, the trend line broke off its relentless march upward for the first time ever this month. That’s no surprise when you consider the big annual or semi-annual payments of many Belgian holdings in my portfolio. Anheuser-Busch InBev (EBR:ABI or NYSE:BUD) and Home Invest Belgium (EBR:HOMI), for example, are a big reason why things shot up so much in May.
Another side effect of these annual payment schemes can be seen in the quarter-over-quarter growth that June displayed, which obviously is negative. However, when you compare June’s numbers to those of December last year, a nice increase is clearly visible – I’m still on the right track!
My dividend piggy bank continues to grow with this month’s income pushing the total up to €364.61 or 72.9% of my annual goal – spectacular numbers! Six more months to go and I’m set to crush any and all expecations I had when I first started this journey.
These excellent results strengthen me in my believe that buying high quality companies that stick to a sustainable dividend that grows over time is a good way to become financially independent. After all, it’s not the dividends I’m after, but the freedom they provide me with later on in life.
Thank you for reading and for your continued support, even in my absence the past few weeks.