Saturday, June 7, 2014

Dividend Income Update – May 2014

Another month has passed by, and it’s time for me to post an article on my favorite subject: dividend income. The reason why I love to post articles on dividend income is because it’s pure numbers. It’s hard to argue the success of long-term dividend growth investing when you can slowly and surely see dividend income rise over time and get closer to covering one’s expenses.
May was yet another very successful month – another large leap forward toward financial independence. The wonderful thing about dividend growth investing is that as time passes and the dividends become larger and larger, the march forward becomes much brisker. I feel like when I was first starting I was walking along as fast as I could, but it was still a walk. Now I feel like I’m at a steady jog. And one day soon I’ll be running.
I hope these monthly dividend income reports provide inspiration for any investors out there that are just starting out. It’s easy to see these payments rising month after month and it shows that it’s possible to one day pay for monthly expenses with dividends, which would provide an investor opportunities and freedom to pursue other interests than full-time work. Without further ado:
May 2014 Dividends Received
  • Raytheon Company (RTN) – $15.13
  • Toronto-Dominion Bank (TD) – $13.12
  • Verizon Communications Inc. (VZ) – $20.67
  • AT&T Inc. (T) – $23.00
  • General Dynamics Corporation (GD) – $12.40
  • Air Products & Chemicals, Inc. (APD) – $15.40
  • American Realty Cap. Prop. Inc. (ARCP) – $14.17
  • ONE Gas Inc. (OGS) – $2.24
  • Oneok, Inc. (OKE) – $19.60
  • Realty Income Corp. (O) – $12.77
  • The Procter & Gamble Company (PG) – $32.82
  • Omega Healthcare Investors Inc. (OHI) – $30.00
  • Orchids Paper Products Company (TIS) – $21.00
  • Kinder Morgan Inc. (KMI) – $75.60
Total dividends received during the month of May: $307.92
I get so excited over this stuff. I remember when I was 20 years old and waiting tables while I was in college, scrounging for every penny I could find. And this kind of income took me a week to earn; sometimes it took even longer. It would appear that my second worker is indeed making a healthy income now, and giving me all of it!  And the second worker is getting ammo I never even provided; the investments in ONE Gas, Inc. (OGS) and Verizon Communications Inc. (VZ) were spun off or provided to me from other companies I already owned an equity stake in (Oneok, Inc. (OKE) andVodafone Group Plc (VOD), respectively). Simply fantastic.
The dividend income for this May was a full 104.4% higher than what I received in May 2013. Success begets success! I’m incredibly proud of the kind of progress I’ve been able to muster thus far, although I also know things are slowing down a bit now with my recent move back home to spend more time with family and this blog. So I’m anxious to continue marching forward toward the beautiful vision of complete financial freedom, but also looking forward to enjoying the journey a bit more than I have in the past.
I was able to cover only ~7% of my expenses this month via passive dividend income, which is very low for me. However, this was due to one of the most expensive months I’ve ever had since I realized the rent owed on the apartment I left in Florida. I’ll be discussing May’s budget disaster in the coming days, and then I’ll be following that up with an article on how I plan to really batten the hatches for the rest of the year. I’m excited to delve back into some serious frugality here pretty soon.
June should be another monster month for dividends, as the final month in every quarter usually is due to a large number of high-quality companies lumping their dividend payments together around the same time. Not that it bothers me; money is money, and I’m happy to receive it however it comes.
One of my major goals for 2014 is to receive $5,200 in dividends during the year. With five months now down and behind us, I’ve received a total of $2,013.09 in dividend income for the year – 38.7% of the way there. I’m optimistic that I’m going to exceed my goal by a healthy margin, and I’ll continue reaching higher and higher as the year continues.
I’ll update my dividend income page to reflect May’s dividends.
Full Disclosure: Long all aforementioned securities.

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