Wednesday, August 15, 2012

Milestone: $1,000 in Dividends in a Single Year

Thanks to an above-average month and a trio of dividend payments today, I have now received over $1,000 in dividends thus far in 2012. I consider this to be an important milestone on the road to building a sustainable and growing dividend income stream. It suggests that my investing strategy is working and I am making great progress toward my goal of receiving $1,300 in dividends this year. It is remarkable to reflect on the fact that I have an extra $1,000 in income -- which is a non-negligible amount -- simply from investing in the stocks of high-quality, profitable companies with good dividend policies. Reaching this milestone helps to drive home the point that dividend growth investing is a sensible strategy for generating income.

19 comments:

  1. Awesome stuff man. Hitting that mark happened to me not long ago late last year. It's great to really see the dividend totals rise month after month and come to the realization that the plan is really working.

    What's your overall plan with dividend growth investing? What's the end game? Is it to become financially independent, retire young or just provide extra income later in life?

    Best wishes!

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    1. Hi Dividend Mantra,

      Thanks for the feedback. To answer your questions, my plan is to build a dividend income stream so that I will eventually become financially independent (i.e., not need to work for income), at which point I could either retire or work on a part-time basis. I don't have the goal of retiring at a specific age (e.g., 40), but I do want to retire at a younger-than-average age. Basically, I want to be in a situation where, when I feel like I am ready to retire, I will have sustainable dividend income that would allow me to do so and live comfortably. I still consider myself to be a long way from retirement, though, so I guess you could say I'm more focused on the road than on the destination at this time.

      Cheers,

      Deedubs

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  2. I'm a long time reader, first time poster and just wanted to say congratulation! It's truly a great milestone. I too should surpass $1000 in dividends this year. Keep up the great work! =)

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    1. Hi Henry,

      Thanks, I appreciate the feedback. Congratulations (in advance) for reaching the $1,000 mark in dividends yourself this year!

      Cheers,

      Deedubs

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  3. Hi Deedubs,

    Congrats on the $1000 dividend mark! This is just the beginning of dividend milestones for you. I'm starting to see the snowball effect as well. I should hit the $1000 mark in September so we are both right there. Good luck to you.

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    1. Hi Austinbroker,

      Thanks! I'm definitely looking forward to achieving even bigger milestones in the future. It's good to hear that you'll be reaching the same milestone soon. Dividend growth investing is certainly paying off for us!

      Cheers,

      Deedubs

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  4. Congrats on the milestone. At your rate you'll be at $1,000 a month before you know it. Keep up the good work.

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    1. Hi Chad,

      Thanks for the feedback. Getting $1,000 a month in dividends would be fantastic! It will be interesting to see how long it takes me to get there.

      Cheers,

      Deedubs

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  5. Congrats! Unfortunately I won't be hitting that mark this year, I had that as a goal starting this year but I think it's out of reach since I was paying off debt very aggressively the first part of the year. I think I'll be on track to receive $1,000 over a year's time by the end of the year but not actually get them this year.

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    1. Hi Jonathan,

      Thanks for your comment. I applaud you for paying off your debt aggressively. The way I look at it, the sooner that debt is paid off, the sooner you can aggressively invest and grow your dividend income.

      Cheers,

      Deedubs

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  6. Good job. You'll reach this bar a lot sooner next year as your dividends are reinvested & raised + new money added. It seems like a winning combination as long as these types of companies can increase profits over time. History is on our side.

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    1. Hi Compounding Income,

      You make a great point: I will likely reach this mark sooner and sooner over the years as I build up my dividend income stream. It might be interesting to keep track of how long it takes to reach $1,000 each year. This year it was August; next year it might be July. It seems like another useful way to monitor progress.

      Cheers,

      Deedubs

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    2. That's a great measurement, I love it! Of course, I don't think I'll reach the $1000 milestone until 2014. I can try to do it next year, but I think it will be tough. If my projections are accurate, I'll get about $800 in 2013. But once I do get there, I think tracking how many months it takes you to reach $1000 each year is a fun game to challenge yourself. Before you know it, you'll reach $1000 in January!

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    3. Hi Gen Y Finance Journey,

      The most important thing is to continue making progress, growing your dividend income year after year. I know that I'm looking forward to the year when I reach $1,000 in dividends per month!

      Cheers,

      Deedubs

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  7. Congratulations on making this milestone!

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  8. Congratulations on making this milestone!

    On to the next milestone :) 5k or 10k?

    cheers,
    Kanwal

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    1. Hi Kanwal,

      Thanks! The next milestone is a modest $2,000 in a single year. :)

      Cheers,

      DGM

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