Time for another one of my favourite updates of the month; my dividend income update. I still get a little thrill of excitement when I log into my ISA and see that I have received another dividend payment, no matter how small it is. Just for owning a tiny part of a company and investing in them, believing in their ideals means we get paid dividends, and hopefully for many years to come! The payments received towards the end of the year are definitely smaller than in the summer months. But, I am still receiving money throughout the month.
I have mentioned this before but, with the individual holdings I currently own in my stocks and shares ISA, I will get 42 mini pay checks a year. For doing nothing! Instead of the one monthly payment I receive for my day job, I’m getting over forty payments instead. Adding a slow but steady income stream by investing in dividend payments has been one of the best decisions I have made so far. 2016 is the first full year that I have been dividend investing for, and I am loving it.
The dividend income received in December is a combination of dividends from shares and payments or from funds. There are always going to be swings in terms of how much income is produced by dividends, just because different holdings pay out at different times. The majority of mine seem to pay out within the first six months of the year. My stocks and shares ISA is with Hargreaves Lansdown, which is very easy to use and I’d definitely recommend them. You can get information about that here or even open an ISA in about 5 minutes.
As part of our long term plans for early retirement, we need enough money in savings and/or income to make sure we can live on a budget long term. I am now counting on the small income stream that will come from dividend payments. The sooner we can get different income streams up and running, the sooner we’ll hit our aims!
Dividends received in December:
HL Multi-Manager High Income – £0.38
Premier Monthly Income – £0.71
Standard Life Inv Real Estate – £0.49
Vanguard Global Emerging Markets – £7.19
Whitbread – £11.96
So, for the final month of dividend payments for 2016, that isn’t bad! Better than the previous three months, so a great end to the year. Although £20 wouldn’t cover any of my monthly bills, it’s a start. My mobile phone bill is £29 a month, so it’s getting there! It would be great to say each month that my dividend income covers some of my monthly reoccurring payments.
As I wrote about the effect of the magic snowball, mine is beginning to gain a tiny spec of momentum. It all starts somewhere. I believe that continuing to live a frugal lifestyle and save as we go along will see us right in the end. I hope this is inspiring someone else to begin their frugal journey. If we can do it, anyone can! We are not depriving ourselves of anything, just making purposeful choices and it’s beginning to pay off.
At the start of the year, I stated that one of my aims for this year is to receive £100 in dividend income. When I wrote that, I honestly thought that I was aiming quite high. Ambitious, optimistic, but aiming high. So, at the end of my first year of investing, I am so pleased to say I have achieved my goal.
More than that, I have well and truly smashed my goal.
In 2016, I have received £168.57 in dividend payments. How amazing is that?! That is so much more than I have received in interest payments on savings for years. Years! And it can only grow from here on in. Although reinvesting my dividends alone won’t do that much, when combined with my savings each month, my passive income is only going to grow. I’m so excited to see what happens in 2017!
Have you received any dividends this month? Thanks for reading!
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