Thursday, November 21, 2019

Annual dividend income crosses $20,000 USD

Today, after tallying up recent dividend income that came in which were automatically reinvested, and investing another $2000 further from my own contribution, my portfolio crossed $20,000 in annual dividend income.

The purchases are the following:
CLX: $584
ADP: $849
3M: $494
T: $75

I usually slip in a few AT&T (T) shares at the end of all my purchase batches, since AT&T shares are cheap per share, so I can spend the remainder of my monies left over after buying more expensive share blocks. Trade commissions are free for me. The dividend income now sits at $20,027.54

This amount is increasing at an average of 9.6% and dividend yield is 2.6%, in total with dividend reinvested the portfolio is estimated to grow at around 12-12.5% in 2019. This type of growth I believe will allow my $20,027 dividend income to grow to $22,530 in one year all by itself without any further contribution from my side. This is the power of the double compounding effect that has been driving my portfolio higher year after year (i.e. the company pays dividends every year which get reinvested into even more shares that pay even more dividends, and the dividends from each of the companies increase every year on their own further empowering the dividend each share generates).

I can easily increase my dividend income to over $30K if I invested in higher risk assets or low growth, higher volatility, high yielding companies. I do not like to invest in these types of high yield companies as it exposes me to more risk, less growth. And I do not need to take such risk as I am still young and do not need the income. Instead, I would prefer investing in moderate yielding or even low yielding companies as long as the dividend is growing well above the rate of inflation. For me, a dividend growth rate + dividend yield that is 12% or over is what I find attractive to invest in. Usually that may be a 2% yield plus a 10% dividend growth, or a 1% yield and 15% growth. On average I try to maintain this 12% total dividend growth (with dividend reinvested) figure for my whole portfolio, which my track record has shown has been maintained over the last 6 years.


  1. Congrats YD! $20k in dividends is huge. That's almost $400 every week that you're pulling in or in otherwords you have an extra worker chugging away at $9.60 / hr for 40 hrs every week and just handing that money over to you.

  2. I like the comment above. Congrats on the dividend income. Simply amazing.

  3. That's awesome. Well done. 20k is a massive milestone. Onwards towards 30k!


    CONGRATULATIONS!!!! HUGE MILESTONE MAN! Just amazing, onward and upward.