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. I will need to look at making that more even over the year eventually, but I shall plod along for now.
I have calculated that at this point in time, with the individual holdings I currently own in my stocks and shares ISA, that 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. Soon, I will receive over 52, which equates to a payment each week. And they will only grow from there! I read about bloggers who receive dividend payments over $1,000 each month, which seems incredible. Who knows, perhaps one day I shall be posting the same!
The dividend income received in November is a combination of dividends from shares and payments or from funds. November’s dividend income is smaller that October. 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 November:
CF Woodford Equity Income – £1.12
HL Multi-Manager High Income – £0.38
ITV – £4.80
Morrisons – £2.37
Premier Monthly Income – £0.51
Standard Life Inv Real Estate – £0.61
So, a little lower than previous months, but I am not complaining 🙂 It’s money received for doing absolutely nothing apart from holding a tiny part of a big company. A tiny pay check that I have received; truly passive income. 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 so this will buy some more shares.
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. If I add November’s total to the previous received, that total now stands at £147.84 so I have well and truly beaten it! As this is my first year of receiving dividends, this seemed like quite a target to reach! I think having holdings which tend to pay out twice a year, plus funds which seem to pay out monthly or quarterly, means that I underestimated how much I receive throughout the year. I am now aiming to receive £150 but as you can see, I am even going to make my revised aim for the year. Amazing! For the first full year of dividend investing, I am very pleased with the progress made.
Have you received any dividends this month? Thanks for reading!
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