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!
I have just 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! 42! 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.
The dividend income received in September is a combination of dividends from shares and dividend payments or interest from funds. September’s dividend income is lower than what I received in August. 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. 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 September:
BT Group – £9.60
HL Multi-Manager Income – £0.38
Lloyds – £1.28
Premier Monthly Income – £0.51
Standard Life Inv UK Real Estate – £0.45
So, a little lower than previous months, but still, I’m not complaining. It’s money I have 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, this will buy me some more shares. Then, my payments will grow! If I look at this in relation to our spending, this amount wouldn’t pay for any bills in their entirety, but it’s a start.
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. Well, if I add September’s total to the previous received, that total now stands at £125.05 so I have well and truly beaten it! As this is my first year of receiving dividends, I thought that this would be 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 by the end of the year. That would be an amazing start to this journey.
Have you received any dividends this month? Thanks for reading!
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