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 Dividend Report
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.
Q3-2017 Dividend Income
When creating this quarter’s dividend report, I was slightly discouraged by the results. Why? Well my dividend income quarter over quarter actually decreased. However, this quarter’s dividend progress (or lack their of) is misleading and I look forward to sharing Q4-2017 data in January.
My Q3-2017 dividend income was $537.76. Last quarter (Q2-2017), my dividend income was $686.46. This equates to a $148.70 or -21.6% decrease from the previous quarter. The decrease is solely due to a few of my larger 401K holdings not providing a distribution during Q3-2017. I know this is a bit odd but some of the funds also do not provide a Q1 dividend. Ultimately, it all balances out as the funds provide two dividends in Q4 (October and December).
Last year’s Q3 dividend income was $521.31. This equates to a $16.45 or 3.15% increase from the same quarter last year. However, this figure is a bit misleading. Why? Well this time last year I was still at my old job which had four regular quarterly dividends.
In past four quarters, my total dividend income was $3,066.74 (~$16 increase annually). I am proud to report that my dividend income is continuing to trend upwards. This growth is fueled by my individual stocks increasing their dividends and continuing to invest (mostly via index funds).
Even more so, I am excited to see my dividend income for Q4-2017 as I will have two distributions from many of my funds. I am expecting that my 2017 annual dividend income will increase nicely compared to 2016.
My average monthly dividend income is now $255.56 ($3,066.74 / 12 months = $255.56), which is 17.04% of my current goal of $1,500/month. I am only am now almost 0.1% closer to my goal; Previously I was at 16.94% of my goal. This is a bit misleading as I switched jobs in the third quarter of last year. Next quarter will show a more meaningful measurement
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:
No individual stock purchases in Q3-2017. Currently, I do not see many (any?) undervalued dividend growth stocks. The market is STILL at all-time highs and I cannot justify buying an individual stock at these levels. I am patiently waiting for a pullback to present a buying opportunity. It’s tough to make sense os current valuations. Maybe I am crazy and missing the boat (on individual stocks). At least I am buying index funds as I am automating my way to financial independence.