As many of my readers may know, I love dividend stocks and believe dividends provide a great source of passive income. Moving forward, I will be providing quarterly updates regarding my dividend income. Utilizing ‘The Dividend Report’ section of my blog, I will share my progress towards my dividend goals. I will also share dividend growth stock ideas and thoughts. Additionally, I will share the rational behind any future purchases or sales. Dividends are truly a wonderful thing.
The current goal is to average $1,500/month in dividend checks. I would like dividends to provide between 25-33% of my monthly retirement income. However, this goal may be revised upwards over time.
My Q3-2016 dividend income was $521.31. Last quarter (Q2-2016), my dividend income was $453.51. This equates to a $67.80 or 14.95% increase from the previous quarter. The increase was solely due to 401k contributions that provided more dividends via index funds.
Last year’s third quarter dividend income was $311.52. This equates to a $209.79 or 67.3% increase from the same quarter last year.
My average monthly dividend income is now $173.77 ($521.31 / 3 months = $173.77), which is 11.58% of my current goal of $1,500/month. I am now 1.51% closer to my goal; Previously I was at 10.07% of my goal.
The graph below outlines my quarterly dividend income dating back to Q1-2013:
The table below outlines my quarterly dividend income dating back to Q1-2013:
I established a partial position in Starbucks ($SBUX) in mid-September when the stock pulled back close to it’s 52 week lows. I will continue to buy shares if the stock prices moves lower. This is a company I want to own for the next 5, 10 or maybe even 20 years.
The company enjoys a strong cult following from its customers, exceptional returns on the capital invested, a healthy balance sheet, and a low dividend payout ratio. I believe that Starbucks will continue to increase their dividend by 10%+ annually for the foreseeable future. The company has great growth prospects due to their expanding business operations in China and India.