Another month means I get the exciting opportunity to talk about the dividend income we received throughout the month. Just for owning a tiny part of a company and investing in them, believing in their ideals and just being patient means we get paid dividends, and hopefully for many years to come! The dividend income received in June is a combination of dividends from shares and dividend payments or interest from funds. Although this month is substantially lower than my dividend income in May, it still is a small income stream that I’m building on over time. 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 today if you feel ready!
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 hoping that a small income stream will come from dividend payments as part of our investment portfolio. The sooner we can get different income streams up and running, the sooner we’ll hit our aims!
Dividends received in June:
HL Multi-Managed High Income – £0.38
Morrisons – £5.25
Premier Monthly Income – £0.59
Standard Life Inv UK Real Estate – £1.17
Okay, so it’s not the biggest amount ever, but it’s money I have received for doing absolutely nothing apart from holding a tiny part of a big company. And, as I continue to invest in different stocks and funds, the amount received over time should increase and increase. Finally, as I’m reinvesting all dividends received, this will buy me some more!
As I wrote about the effect of the magic snowball, this is the beginning of mine. Although, I suppose it’s more like a snowflake than a snowball at this stage! However, it all starts somewhere and 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!
I am aiming to receive £100 in dividend payments over the year, which is a big aim considering I’ve only just started investing in dividend paying stocks. I think having a combination of stocks with tend to pay out twice a year, plus funds which seem to pay out monthly or quarterly, will eventually create a good second income stream. In 2016 so far I am up to £47.97 received in dividends, so just under 50% of the way to my yearly goal! At the halfway point through the year, I am on track to reach the £100 aim even without calculating any new purchases within the second part of the year. How exciting is that? I won’t get dividend payments every month, as I haven’t invested in enough companies as of yet, plus lots of them seem to pay in either Jan/July/Aug/Sept so perhaps trying to get dividend income every month will also be a challenge. But, the only way is up!
Have you received any dividends this month? Thanks for reading!
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