I do know that my dividend income will be very different to last years, because of the recent cuts to various holdings. However, I need to keep in mind that this investing for dividend income is the long game. Yes, it might be strange this year but I’ve got another twenty years to go!
I love writing about dividend income; I wish I could inspire everyone to try it out. I promise you that it isn’t as scary as it sounds! Consistency is the key when it comes to building dividend income. Slow and steady will win the race Five years ago I had yet to receive my first dividend payment, so this just shows what a little time and patience can achieve!
See also: Dividend Income
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!
In fact, I’m sure we will be able to at some point, if we continue on the same path. It will be so exciting when we get to pay our fixed expenses with passive income. That’s the dream, right there In fact, I am aiming to have £1,000 a month on average to ensure this. Of course, some months pay out more than others but an average of £1,000 a month would be great. However, as you’ll see in a second, I am so far from this 😉
The dividend income received in July is less than last years 
as there have been some dividend cuts in my portfolio. 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. Slow and steady wins the race. I am never going to be able to invest huge amounts, so this is something that will take time. We will get there! I provide up-to-the-minute updates over on my Patreon so make sure you join me over there.
Dividends received in July:
GlaxoSmithKline – £25.65
Pets At Home – £15.00
Total: £40.65
So, less than last year but still ok. I could pay my mobile phone bill with this and have some spare 🙂 That’s the long term aim! At the moment, all dividend income received is reinvested. Because my holdings are within my stocks and shares ISA with Hargreaves Lansdown, I don’t pay any tax on them either, as they are inside that tax free wrapper.
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 2020 is £1,600 received. As of now, I feel like this is a massive aim for us; it’ll be tricky to reach but I am going to continue to invest with my strategy and hope. To get that means an average of £133 a month, which as you can see I’m a long way off! At the end of the seventh month I’m up to £411.71 so very much a long way to go! In fact, I won’t hit my aim this year but it was set back at the start of January when things looked very different. I am going to try and continue my strategy and see what happens longer term. Here’s a visual look at my dividend income for the past four years, with 2020 being added as the red line:
The growth should continue going up in an ideal world but I just can’t say at this point; I will continue with my investment strategy and just see what happens over the next few months. I’m in it for the long haul so things should even out – hopefully! I do know that some months going forward will be drastically lower
Have you received any dividends this month? Thanks for reading!
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Amazing Post, good luck
I’ve just started building a dividend portfolio. Mainly using Dividend focused ETFs. Looking forward to being able to do a report like this sometime soon 🙂
I am just starting to invest in dividends, so I have a long way to go. Thanks for sharing!
Hi.
How much money do you have in these shares to receive this dividend income please? Also, does it cost £12.50 every time you buy new shares?
Thanks
I don’t share my total holding amount anymore after some dubious messages about it! And it costs £11.95 to place a holding in an individual company, but it’s just a small ongoing % fee for funds. I only do one investment per month to keep fees lower.
Have you considered alternative ISA providers? Hl has 0.45% fees and then commission on stock buys.
I started my investing in a freetrade ISA which charged £3 a month and no commission. I think AJ Bell and a few others are good too.
Congrats on the income! Was thinking of adding GSK to my portfolio too!
I’d be intrested to get an update for the past few years.