Friday, July 21, 2017

My annual dividend is now almost reaching 5 figures

My investing started back in October 2013. I have been diligently investing my income into dividend paying stocks so that one day I can live off the dividends. The companies I invest in are largely dividend aristocrats with large margins of payout safety and track record of dividend increases over many decades. My primary focus is dividend safety and the growth of that dividend on its own.

Back then I had $0 in passive income every year. The contributions initially felt like a complete waste of time. I had people tell me 3% yield (what I'm shooting for as my average portfolio yield) is nothing and that it would take forever to accumulate enough assets to live off of that. The income I was receiving from my dividends in 2014 every month would barely pay for a happy meal. But now the dividends are rolling in. I'm making more from my dividends now doing absolutely nothing than when I was a college student laboring away at minimum wage part time to pay my rent. The dividend payments are quite sizable now with my largest month January paying over $1000. I'm certainly glad that I kept with my original plan instead of spending the money as the dividend payment effects are starting to snowball. 

I estimate that by the end of August or September I will be able to cross the $10,000 a year mark in dividends. This means that every year I will be able to receive $10,000 for doing absolutely nothing. I can be sipping martinis and those dividend checks will still be mailed to my door. What a great feeling to not have to be tied to an employer. Eventually I hope this number grows even more so I can sustain my entire lifestyle with passive income.

I expect that with dividends reinvested, this $10,000 will be able to grow by 10% (3% yield reinvested with 7% dividend growth on its own), which means that $10,000 in one year will become $11,000 the next year and $12,100 the next. I find that this is a great way to snowball my passive income without having to work at all.

I invested heavily in the Q2 of 2017. A lot of my position was in cash starting in 2017 so I deployed a lot of that to work. I will post when I finally cross the 5 figure mark in a few weeks.

Happy investing -YD


  1. Congratulations YD. That is some great growth that you have had. Your dividends are compounding nicely for you. I can't wait to read about you crossing this milestone. Thanks for sharing.

  2. Awesome dividend growth! Keep on growing it!

  3. Very nicely written! Thanks for the motivation and congratulations on your nearly 10k/year forward dividend payments. I always come back to read your consistent reports.


  4. Young Div -

    Your name, Young Dividend, is pretty funny now that we think about it - should start calling you Master Dividend with forward income like that! Congratulations and looking forward to being there, very soon, as well!


  5. That is some serious cash coming in to you. Congrats!

  6. That's some serious growth. Much faster than mine. How much are you contributing to your account each month on average?

    p.s. - I hate your spam protection. It took me 4 trys to get those darn road signs right. hah

    1. I contribute on the scale of a handful of thousands of dollars a month. I try to save 70-80% of my take home income (after taxes amount) for dividend paying stocks. The take home income that I spend is probably 70% on overpriced rental, 13% car, 17% living and entertainment.

      Sorry about the Google protection :( I'll see if I can find a better system.

  7. That forward dividend ramp is very impressive, and the trajectory for 2017 is even more awesome... keep it up! I'm looking forward to when you hit the $10K mark.