Dividends

Dividend Update August 2020

At the end of every month, I plan to post my Dividend Income Report! This is where I review my portfolio of dividend growth stocks and ETFs to track my progress and note any changes that have been made to ensure I am moving forward toward my goal of liquid FI.

I’ll be measuring the results of each dividend stock purchase, dividend increase, and reinvested dividends to calculate the effect each has had on my portfolio and track my passive income.

Creating Passive Income

Most of the stocks I own are dividend growers, so I expect my dividends to grow over time increasing my passive income bit by bit. Owning a small piece of some of the best businesses in the world will generate dividend income that I continue to reinvest to fuel further growth.

With each purchase and dividend increase along with every DRIP it’s another seed planted that will most assuredly blossom over time and will eventually generate a powerful source of passive income along with that peaceful feeling of financial security.

The best part is anyone can become an owner of a world-class business by investing in established companies that will in turn pay you dividends even while you sleep.

Each month I tally up all of my purchases and dividend income plus all of the dividend increases I’ve received for the month and then calculate my ever-increasing 12 month forward dividends.

Liquid FI

Having a liquid net worth has become my focus over the last several years after a serious health scare when I realized just how illiquid our net worth really is.

The ultimate goal is to have a solid-liquid portfolio that produces enough income that covers all of my monthly expenses in order for me to have financial security and peace of mind. Each dividend income report will map out the steps of my progress and creates a hard copy of my plan to keep me focused.

 

Dividend Income

My August dividend income results are in and this month has been an exceptionally small month for my Liquid FI portfolio as my larger payers are not in August. But I will take it! Every penny counts toward financial independence.

This month I received $318.97 in dividends from 8 stocks and a bit of interest from cash on hand in my liquid portfolio. My dividend income goal for the year is $6000. I may be a bit short but I am getting closer every day.

I am currently at approximately $5400 in 12 month forward dividends.

With only four months left in the year, it’s going to be difficult reaching my stretch goal $7000 in 12 month forward dividends. But still worth a shot.

August is consistently one of my smaller dividend/distribution months and that is ok. Because each dividend consistently reinvested will compound over time. Picking up more shares earns more dividends which in turn can be reinvested into more shares. Rinse and repeat.

I believe I have experienced at least two dividend cuts for this year. BBL and SPG. Truthfully I haven’t really kept a good eye on this so I will take a peek soon.

So without further ado here are the dividends I’ve received from my Liquid FI Portfolio. I’ve listed the accounts highlighting their types!

August 2020

TAXABLE
T……………5.29
ABBV….23.90

TRADITIONAL
T…………..0.54

ROTH
T……….113.12
ABBV….71.32
AAPL……8.33
CVS……26.04
GIS…….15.56
KMI……11.07
O…………2.49
VZ……..27.62
GD…….11.09
interest .01

Savings
#1 ~ 2.50
#2 ~ 0.05
#3 ~ 0.04

Month  ~ $318.97
YTD  ~   $3275.35

Summary

My total amount Dividends received for August 2020 comes to $318.97. It’s not a huge amount but I will take it. All of these dividends are reinvested utilizing DRIP.

Although I am a bit shy of my goal of $7000 in 12 month forward dividends I have no intentions of chasing yield and will stick to my plan of good quality, solid businesses with growing dividends.

~M

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