Wednesday, April 24, 2013

Dividend Income For March 2013

Welp, personally I’m glad March is over. I don’t know where you live, but here March came in like a lion and left like a man eating shark. We still have piles of snow and below freezing temperatures which means this will be the 7th consecutive month of having snow on the ground. I think those global warming groups need to find a hobby because I’m not seeing these hotter temperatures they keep going on about.


I digress.

Perhaps I should focus on a more exciting topic for a dividend investor, like the amount of money I have made in March without lifting a finger. It’s really amazing how fast one’s passive income grows with dividend increases and re-investing those growing dividends. My total calculated dividend income for 2013 is just shy of $5,000 and I haven’t even invested any extra capital yet this year.

Looking back through my spreadsheets I noticed my dividend income for March last year was $391. Just from dividend increases alone my dividend income for the month of March 2013 has increased to:

$417

That’s it? Think again my friend!

An increase of $26 might not seem very much to some people but they really aren’t looking at the big picture. Fast forward thirty years when my dividend income for the month of March is $3910 and it increases 6.6% to $4170, that’s a huge increase to my passive income. I would need to buy $29,500 worth of common shares yielding 3.52% if I were to increase my quarterly dividend income by $260. I hope everyone now knows why I get soo excited when I hear about dividend increases!
My so called meager $26 increase in passive income means I get way more bang for my buck. Basically I saved myself from investing $2950 to gain the extra $26 in dividend income. As the dividends are increased, my yield on cost will increase as well. This increases my overall return on my investments or my (ROI).
It’s a great feeling to have my money work hard for me instead of the other way around. If the markets keep dipping over the next few days I might be pulling the trigger on a few more investments. The lower I can buy a quality stock at, the better the ROI I will have. Make sure you stay tuned for next month’s dividend income update and may your dividends always increase!
How did you make out on your monthly dividend income for March?

This article was written by The Loonie Bin. If you enjoyed this article, please consider subscribing to his feed.

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