Dividend Income Update – September 2016

Let’s face it, the retirement savings rate in the US is pretty bad.  Many Americans will never save anything and then a vast majority of those that will save, will not save enough.  And of those that do save enough, some still will live scared they will run out of money or have no idea what they really own!

I don’t know about you, but I, in no way, want to be stressed about money my entire life…that is no way to live.  We decided to shift our focus to collecting assets rather than bills.  We want to build up our assets enough to allow us the freedom to retire, semi-retire, or work on any project we want to without being forced to work to just pay bills.

How do you know how much is enough?

I feel as though many people have a hard time figuring out what their goal for retirement is.  My goal is not to have a big pile of cash or to save up to this very large number that a financial calculator spit out for me.  My worry is that people see this large number that someone is telling them they need to save and it scares them.  It seems so far out there that they shrug it off and never really get started, or they tell themselves “well, I’ll start next year” and they keep putting it off.

I know you’ve heard it before, but what’s the best way to eat an elephant?  One bite at a time!

You just have to start, take small steps, and just get moving in the right direction!

What I finally realized is that I didn’t need some over the top large number in savings to retire.  I only needed my assets to produce enough income to cover our expenses.  If income is ultimately the end goal then why couldn’t I start building it now slowly and steady?  When the income produced by our assets is enough to cover expenses then we would have the option of retiring if we wanted to.  That could be 10 years from now or 30 years from now, depending on how serious we go after it.  What it surely isn’t is an arbitrary age set by the government by way of social security, and it surely won’t be an age that I’m allowed to retire by an employer.

As of right now, the assets we are accumulating are dividend growth stocks.  We are building a portfolio of companies that have a history of paying dividends and increasing those dividends every year.  Will all of my selections turn out to be stellar investments that get talked about on CNBC and be all the rage?  Far from it, but if together they accomplish our goal, then that’s all that really matters, right?

As of right now we own shares of 17 different companies, you can see them all HERE.  And I keep a “want list” of about 80 companies that I would like to own a piece of, we will accumulate them slowly as time goes on.

I truly believe that for most people there are 3 basic ways to become wealthy: 1. Build your own business; 2. Own shares of other great businesses; 3. Real Estate.  We have started our wealth building with ownership in other businesses.

Who paid us in September:

 

  • Chevron (CVX) –  $21.55

  • Gilead Sciences (GILD) – $4.81

  • Johnson & Johnson (JNJ) – $16.60

  • Realty Income (O) – $10.66

  • Ventas Realty (VTR) – $13.18

  • Southern Company (SO) – $26.74

  • Stag Industrial (STAG) – $8.17

  • Care Capital Partners (CCP) – $7.18

  • BHP Billiton Plc (BBL) – $9.46

Total dividends received in September:  $118.35

 

Another month breaking through the $100 mark, I like it.  Our portfolio saved and invested $118.35 for us this month…that’s money saved that did not have to come out of my pocket.  It is slowly building itself up to pay us more and more passive income as the years pass by.  How cool is that?  Here’s the graph of all of our dividend payments:

You may be wondering why our income this September is less than last September.  BBL made the decision late last year to reduce the dividend they pay per share, dropping our payment from them by about $30 for the month.  Investing involves risks, you just have to be aware of them and have a solid plan that pulls you through and closer to your goals.

Our total dividends accumulated has climbed to $1,178.86

Like my father in law likes to say, “Onward and Upward.”

Are you building assets or are you just paying bills?

Thanks for reading,

Chad

Subscribe to receive a notification via your email when I have a new post go live.

6 Comments

  1. Doug

    Sometimes dividends has to be cut. In a perfect world no cuts would be made. You still made money and that is all that maters keep buying and it will be like you never miss it
    Doug recently posted…Today’s buy (Main)My Profile

    Reply
    1. ourdimeourtime@gmail.com (Post author)

      Thanks for stopping by Doug. Yep, my timing was off on KMI and BBL both…but they are still companies I want to own and believe will pay me lots of money over my lifetime. The amounts I have invested in both are minimal and I’ll be adding to them at some point. I see that you have recently added to (MAIN), I have them on my list to own. It’s a little riskier than some on my list but that 6.6% dividend yield that is paid monthly (along with a special dividend sometimes) is looking pretty nice. Good luck with your purchase!

      Chad

      Reply
  2. Nathan

    Fantastic progress. It feels good to look at those charts I bet. Everything is heading in the right direction for you.
    Nathan recently posted…TROW – T. Rowe Price Stock BuyMy Profile

    Reply
  3. ourdimeourtime@gmail.com (Post author)

    Thanks Nathan,

    Sorry, I just noticed and pulled this comment out of my spam catcher.

    What has really made a lot of progress is our monthly cash flow and our debt balances. We are almost finished cleaning up past stuff…and then let the real buying begin, haha.

    Again, thanks for stopping by and it looks like you got a good price on those additional TROW shares. Congrats and keep building it!

    Chad

    Reply
  4. DivHut

    Nice list of companies paying you in September. Just keep diversifying and sticking with companies that have sustainable dividends. Unfortunately, cuts happen to everyone at some point in their dividend investing career. That’s part of the game. It’s all about getting those cuts infrequently and to mitigate any potential loss with other names in your portfolio that continually raise their payouts. Thanks for sharing.
    DivHut recently posted…Recent Stock Purchase October 2016My Profile

    Reply
    1. ourdimeourtime@gmail.com (Post author)

      Hey Keith,

      Great advice and I appreciate you stopping by. Looks like you had some quality purchases in October…congrats on staying consistent with your plan!

      Thanks for reading,

      Chad

      Reply

Leave a Comment

Your email address will not be published. Required fields are marked *

CommentLuv badge