Dividend Income May 2019

Another month is over which means time for my favourite update. It honestly makes me so happy writing these updates; it proves that our plan is working. The one thing I’m trying to not do with my investment account is check it daily. Purely because that shares go up and down all of the time, and until I decide to sell, what happens on a daily basis doesn’t matter quite so much.

 

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

 

Some months are so much better than others as the income received varies so much.  Although I need to keep an eye on the market and the companies I am invested in, it is fairly passive in its nature. I have it set so that the dividends are kept in my ISA and so I can reinvest them where I see appropriate immediately. I do wish that it was rising slightly more quickly, but it is a game of patience. It will increase in time, I just need to wait!

 

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. In fact, as this month shows, it will be possible 🙂

 

Dividends received in May:

Aviva – £41.50

ITV Plc – £27.00

Lloyds Bank – £8.56

Standard Life – £42.90

Vanguard LifeStrategy 60% – £57.20

Total: £177.16

 

Look at that…! This is over £100 more than May last year though, which is amazing.  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’s look good:

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 is May’s dividend income. I cannot wait to see what this looks like at the end of the year!

 

My dividend income aim for 2019 is £1,000 received. At the end of May, I am up to £373.05 which is not bad. If I were to be at track at this stage I should be at 41.6% completed but I currently stand at 37.3% so a little behind. 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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