I am really excited to write this dividend income report especially after having put together the numbers. As you know (or maybe you don’t), it has been my goal to increase the dividend income coming into my retirement account and get familiar with dividend investing as a prelude to retirement. It has been my belief that I shouldn’t be saving with the goal of living off my savings when I retire. Rather, I plan on investing in assets that produce income and living off that income.
My goal for the first quarter was $1500 which I was able to meet. For this quarter, that amount was increased by $300 meaning that I was supposed to make $1800 during these past 3 months. I planned on being able to increase the dividend payments because I am moving from stocks that don’t pay dividends to stocks that do and increasing the amount that I have invested in those stocks by selling covered calls and using the proceeds to buy more stock.
First, check out the graph of the results:
My Dividend Income for Last 2 Years
As you can see, there has been a great increase since making a conscious effort to focus on dividend income. You can also see that I met my goal of $1800 for the quarter. In fact, I crushed it with $2143.23! That is over $700 per month in passive income during a time when the stocks in my portfolio didn’t do all that well.
But it really doesn’t matter if the stocks do very well or not. When it comes to retirement income, I am looking for solid companies that will be sending out a steady income stream. I just need to make sure that the worst case scenario (company bankruptcy) doesn’t hurt the portfolio too much. Otherwise, I should expect some ups and downs in the value of the portfolio, but consistent dividend payments.
Now this quarter, I have a goal of getting $2100. It seems like that should be pretty easy, but I did get two dividend payments from Silver Wheaton during the quarter (not exactly sure why) and an extra small dividend from Seadrill. Those payments will have to be made up with additional shares. But I did add some Nucor stock which should help with that. I am fairly confident that I can make it to my next target.
I can’t wait for the next report!
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