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
Total: £7.39
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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Congrats on your progress YTD. Dividends are a great source of income and to your point the snowball builds on itself. Keep up the good work.
Thank you 🙂
Hi Nicola,
I think your blog’s great. I have followed on Twitter 🙂 I am thinking of opening an S&S ISA and currently weighing the relative merits of different platforms. I was just wondering how you negotiate the fees for buying shares on the HL platform – they seem quite hefty. Do you just save it up and purchase a whole bunch in one go to reduce it? Or do you take the view that the dividend payments are negating that fee at first? Thanks!
Hello! Thanks for following 🙂 I pay for the fees for HL out of my dividend payments, so I don’t take them into account at the moment. They’re fairly small too 😉 I looked at other platforms but I found the HL seemed to be the easiest to understand. I also save and purchase in bigger numbers to reduce fees!
The cottage is bringing in the passive income. It doesn’t matter if it’s a huge number or a small number. The fact that you started on this passive income journey says a lot. Just watch what happens to that income stream over the years as dividends begin to compound. Thanks for sharing.