Dividend Income June 2019

Another dividend income post! To be honest, I knew that after May’s bumper payout, June would almost seem like a let down. Especially as one of the holdings is being paid out in July this year instead of June, so it’s even lower than before. However, I am not complaining! When you are investing for dividend income, there are always going to be months that are lower in comparison.

 

The one thing I have tried to do this month – and succeeded – is to not check my ISA every day. The reason behind this is that I am a dividend growth investor, so the amount my shares are worth day to day is not particularly useful information. The only time when it really matters is the day I plan to sell. I know that it’s a good idea to keep an eye on things, but I was becoming a bit obsessive about checking every day. There’s just no need! So I really took a step back from checking this month which I actually felt better about in the end.

 

This is my fourth year of dividend investing, already. I can’t believe it! And one of the only things I regret is not starting sooner. If you’re putting off investing, because of the risk or thinking you don’t have enough to start, then please do. You can start with £25 a month into a low risk fund and go from there. It will add up over time and make a difference. You can reinvest as well, so if you’re thinking about starting to invest, please do!

 

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. 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. I am quietly confident that we will be able to do this, in the long run.

 

Dividends received in June:

Card Factory – £25.60

Sage Group – £8.69

Total: £34.29

 

So, yes, a lot less than last month. But, it’s still not bad! This would almost cover my phone bill for the month, so that’s a start. At the moment, all dividend income received is reinvested, so this will be kept until I add some more savings to buy more shares. Because my holdings are within my stocks and shares ISA with Hargreaves Lansdown, I don’t pay any tax on them either.

 

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. If I show you this graph which shows year on year growth, it looks good, even with the dip this month:

 

The orange lines are for 2019 – you can see the difference in some months already. January was slightly lower but February was much more, as was May’s dividend income. June’s dividend income is lower than last year, and the year before actually. Need to do something about that!

 

My dividend income aim for 2019 is £1,000 received. At the end of June, I am up to £407.34 which is not bad. However, I am now definitely behind where I should be at half way through the year. So, some catching up to do! Although there are some months throughout the year where there is little paid, the overall trend will still be upwards. I can’t wait 

 

Have you received any dividends this month? Thanks for reading! 

 

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