Another dividend income report time and the first of 2018. I am so excited to see what the numbers add up to at the end of this year. However, shares have been particularly rocky this past few days, so it’s always a bit tough to see the numbers go down. But, unless I sell my holdings it doesn’t have an immediate impact. I need to remember that!
2017 was a great year for my dividend income and I still believe in creating this passive income stream. I absolutely smashed my target last year so hopefully I can do that again this year. The start of the year seems to be a good time for dividend payments, which, if we were using this as spending money, would be good just after the holidays. After all, it’s income that I’m receiving for just being invested in various companies. Although I need to keep an eye on the market and the companies I am invested in, it is fairly passive in its nature. I have it set so that the dividends are kept in my isa and so I can reinvest them where I see appropriate immediately.
Eventually, the aim is to use the dividend income to pay some household bills. Things like council tax, or water rates. That’s when passive income really takes over. We are such a long way off this! To pay fixed expenses each month from passive income would be amazing. To be able to pay for things that we have no control over, such as our council tax or the water rates, by using dividend income would take the pressure off other areas of money. One day, I am hoping to say we can do this!
The dividend income received in January is a combination of dividends from shares and 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. In January 2017 I received £46.94, which was my highest month to date. This year is better 😉
Dividends received in January:
- Brown Group – £22.68
- GlaxoSmithKline – £25.65
- Halfords – £6.00
- Marks and Spencer – £6.80
- Next – £19.60
- Pets At Home – £7.50
- Premier Monthly Income – £0.62
Total – £88.85
My first month of 2018 and it’s the second highest income received ever. Only December 2017‘s beat this. That’s a great start to the year! At the moment, all dividend income received is reinvested, but it’s nice to know that we could cover a significant bill using this. Because my holdings are within my stocks and shares ISA with Hargreaves Lansdown, I don’t pay any tax on them either.
As I wrote about the effect of the magic snowball, mine is beginning to move slightly. By reinvesting the dividends, it’ll only create more income. 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. Literally!
My dividend income aim for 2018 is £800 received. At the end of January, I have made a great start! Although there are some months throughout the year where there is little paid, the overall trend will still be upwards. I can’t wait 🙂
Have you received any dividends this month? Thanks for reading!
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