Close your eyes for a minute and take a few breaths.
Now visualize this: from an outside source (let’s say good old uncle Warren Buffett) you have enough income coming in every month to cover your basic living expenses (shelter, food, utilities, clothing, transportation, etc.) and the money you earn at work is just your play or fun money.
You’re probably thinking of a bunch of ways to spend that fun money…would you take more trips, visit your kids or grand-kids more, give it away to others in need, buy more toys, save and invest it?
How many of you wouldn’t work as much as you do now? Maybe you would like a fun part-time job instead.
Well I’m not counting on a rich uncle to leave me some money, publishers clearing house to show up with a check (do they still do this?), or winning the lottery game that pays you $1,000/week for life. But, what we can do is build our own lottery, from scratch, with 100% chance of winning. That’s exactly why my wife and I are building a passive income stream with dividend paying companies…it’s not a fast, sexy way to get rich, but instead a slow methodical boring way to make sure we get there.
Have you ever read The Tortoise and the Hare? The slow, boring turtle wins every time! Most people in the finance world think they are Hares and want to sell you on the “next big thing”. Don’t fall for it…keep it simple while being mindful of the fees you are paying. The two most important aspects of building wealth with investments is the amount you contribute on a consistent basis and the amount of fees coming out.
So, what awesome “boring” companies paid us this month?
BHP Billiton plc ADR (BBL) – $27.30
Chevron Corp (CVX) – $22.19
Gilead Sciences Inc. (GILD) – $5.39
Johnson & Johnson (JNJ) – $16.83
Realty Income Corp (O) – $11.36
Ventas, Inc (VTR) – $14.31
Southern Company (SO) – $27.35
NextEra Energy, Inc (NEE) – $13.76
Kraft Heinz Co (KHC) – $9.12
Dominion Resources, Inc (D) – $14.35
Stag Industrial, Inc (STAG) – $8.47
Care Capital Properties (CCP) – $7.49
Total dividends received for the month of March….$177.92
That’s a new all time monthly record folks!! That’s enough to cover my electric bill and cell phone bill this month…thank you businesses. Last March we received $114.79; this represents a 55% increase over last year.
There are three compounding forces working in our favor causing the ever-increasing dividends…1st and most important in the early stages is new money going in, instead of financing a new car, we prioritize saving and investing. 2nd is the additional shares bought each month by reinvesting the dividends that are paid. At some point, the companies themselves will be investing more money for us than we can put in by ourselves. And 3rd, the majority of the companies we own, and will own, have a history of raising the amount of the dividend paid per share, each and every year. For example: Proctor & Gamble 60 years, 3M 59 years, Coke 55 years, J&J 55 years, Chevron 29 years, Realty Income 24 years, NextEra Energy 23 years, W.P. Carey 20 years, Cardinal Health 20 years, and Southern Co. 16 years to just name a few that we already own.
You can check out our full New and Improved Portfolio HERE.
In other news I haven’t spent much time on the blog since I was finishing up my tenure at work…I’m now just a part-time bum. We are getting our house ready to sell and we are moving from Georgia to Southern California. If anyone is looking for a 4 bedroom, 3,000 sq ft, house with 1,200 sq ft basement on 1.35 acres in Cherokee County Georgia just let me know…I have one for you!
Monthly Dividends Received Chart
Cumulative Dividends Received Chart
Thanks for reading!