Milestone Reached – $300 Month in Dividends

September was a very good month for dividends! And like most other dividend growth investors, I was very much looking forward to an even better month in December!

Progress

My first major milestone was reached in September, when my total dividend payout for the month exceeded $200 for the first time. Last time around, my largest payout was from SeaDrill (SDRL), which paid me $63 in dividends. I have since exited out of that position, and replaced SDRL with McDonald’s (MCD), which also happens to payout in the same month.

September-November were busy months for me, as I made many purchases. I added to positions in: Exelon (EXC), Intel (INTC), Norfolk Southern (NSC), CSX (CSX), Cummins (CMI), and MCD.

Results

By doing so, I had a good feeling that December would be a fabulous month for dividends. 🙂 As it turns out, I was able to cross the $300 milestone for the first time! Here are the payouts for this month:

$300

The total payout was $330.89. I received hefty payouts from two of my larger holdings, EXC and NSC. EXC paid $79.18, and NSC provided $50 in passive income. This helped offset some of the dividends that were lost from selling SDRL. I don’t have any regrets selling SDRL, but it is worth noting that their payout this quarter was a staggering $1.70/share. I previously owned 74 shares or so, so we are talking about $127.50 in passive income. That’s quite a chunk of change right there!

Looking Ahead

The next milestone will be $400/month. This will take some more time to achieve since I haven’t made any acquisitions, outside of recently purchasing some shares of The Southern Company (SO), to help me generate more passive income. However, my recent purchases of Abbott Laboratories (ABT), Kinder Morgan Inc. (KMI), and Air Products and Chemicals (APD) should give my February payout a big boost. I’ll probably fall just short of $200/month, in February.

As for January, things will be slow, as I have very few companies paying out in that part of the rotation. As a matter of fact, I only have Pepsi (PEP) lined up for next month. Although it would be nice to have a more even distribution of dividend payouts, this comes secondary to investing in the right companies at the right value. So, I don’t expect to achieve this type of balance anytime soon, if ever. It just so happens that most of the companies I am interested in investing in payout during the same time.

Overall, I’m very pleased with the progress that the dividend portfolio is making. It’s small victories, such as these milestones, that keep me motivated to keep pushing forward. I can only dream of the day when the passive income stream can return $1000/month. That seems like eons away, so until then, just keep swimming…

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Dividend Growth MachineInto IndependenceFI FighterDividend MantraJC @ PassiveIncomePursuit Recent comment authors
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The Stoic
Guest

Congrats FI. 300 in dividends for the month is nice. 1000 a month will be here before you know it 🙂

Happy Holidays!

Allaboutinterest
Guest

Hey congrats on 300. I should break 500 this month but several companies have accelerated dividends to avoid higher taxes. It could be a while before I see that much again. 1000/month is a great goal that I can’t wait to hit. The key is to stay persistent and not lose focus.

Take care!

Compounding Income
Guest

Looking good there. Earning $300 passively is simply fantastic. Think about it, you didn’t have to punch in to earn this money. Income investing works! I have a few that will pay on Monday, but it’s looking like a good month for me aswell.

Deacon @ Well Kept Wallet
Guest

Way to go! It is amazing what can happen when you set goals and try to make them happen 🙂

Brick By Brick Investing | Marvin
Guest

NICE!! I love it man. I’m sure it’s a great feeling, imagine what it will be 10 years from now!

Not to get too sentimental on you but before starting my blog and being introduced to the blogosphere I was suffering a bout of “financial depression.” I would talk my friends and family about finances and dividend investing hoping they would get as excited as I was and take some action but all I heard was negativity. They would ask “How much money are you making?” In which I would respond (honestly) “A couple hundred here and there.” Then they’d either laugh or scoff… very annoying to say the least (It was DEFINITELY FINANCIAL REJECTION!). I guess if I wasn’t producing 1000% gains overnight it wasn’t worth their time and effort to hear me out.

But meeting individuals like yourself and seeing your progress motivates me and keeps my mind in the right place. It let’s my wife and I know the sacrifices we’re making now will payoff in the long run.

Thank you and keep up the good work!

Martin
Guest

Marvin, I had the exact same experience when talking to my friends or relatives. When they heard about 3% (at the time when CDs paid 4-6%) they were laughing. Many times however, these people do not understand the power of compounding and yield on cost, so since their CDs are now at zero-zero-nothing interest rate, some of my ROTH IRA holdings, such as JNJ have yield on cost at 5% and growing. I no longer share my experience with my friends unless they specifically ask. Fortunately I now have friends who understand and are at the same wave…

Brick By Brick Investing | Marvin
Guest

It’s reassuring to hear your experience as well. My biggest problem is 15 years from now when I have a nice steady flow of dividend income coming in THAT is when all my family members and friends are going to start coming to me for advice and by then it’s far too late.

I have adopted the practice of keeping my mouth shut around my peers unless asked specifically.

I’m holding JNJ as well. Love the stock and the company, I think our payouts will only get fatter as the baby boomer generation continues into retirement.

Hank
Guest

Did you see any temporary increases in special dividends in your portfolio thanks to the Fiscal Cliff and Congress’ inactivity?

Martin
Guest

Congrats man! I am at the beginning of the path and I have my goal to reach $100 a month in dividends in 2013. It took you about three months to go from 200 to 300, that is an amazing result. I’ll see how quickly I will get to my goal. Good job.

JC @ PassiveIncomePursuit
Guest

Keep at it FI! I also passed a milestone in December which is awesome. Of course passing the milestone was due to 2 companies accelerating their 1Q payment to December, but I’ll take it. I would have been about $10 short if they didn’t pay earlier. Based on my forward 12-month dividends I’m going to average almost $150 per month in dividends for 2013. It’s a good feeling to be able to cross some milestones off. Best wishes for 2013.

Dividend Mantra
Guest

Fighter,

That’s awesome! You’re going to be passing $500/mo before you know it. Keep it up.

December was a big month for some of us due to a few accelerated payments, so January is going to be a bit of a bummer, but as long as the dollars hit my account that’s all that matters for me.

I sense 2013 is going to be a big year. As the dividend payouts rise it gives us even more firepower with which to allocate.

Best wishes!

Into Independence
Guest

Congratulations on your milestone. I have primarily been a Vanguard index fund investor for my 401k and Roth IRA’s (spouse and I) over my investing career. It’s great to see compounding at work after 18+ years of investing ! I recently started directing taxable funds to a individual stock dividend growth strategy. It’s definitely exciting and I look forward to the day my taxable dividends reach $300 per month. The $300 could pay a couple of utility bills per month 🙂 Happy New Year

Dividend Growth Machine
Guest

Excellent — I love to see that kind of progress! $300 will soon become $400, then $500 per month, and so on… it’s a highly motivational aspect of dividend growth investing. Keep up the good work!

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