I’ve been on the DGI path for several years now. However, to be frank, it wasn’t always easy to stay the course. As you start, the progress is almost insignificantly small. It’s literally about taking baby steps. No wonder that morale can be low sometimes. That is why keeping motivation high is quite important. But how to achieve it? Personally, I draw my motivation from setting goals and tracking progress. Once the goal is set and I see all the nice progress that has been made so far, it is much easier to continue executing the plan.
For this very reason, I track the monthly dividends. It has become a routine for me. I see where my cash flow is today, how much it has grown compared to yesterday and what amount is missing to hit the goal. That being said, let’s have a look at the income numbers for November 2019.
Dividend Income: November 2019
In November, 8 different companies have rewarded me with a dividend payment:
- AT&T (T): €27.15
- General Mills (GIS): €11.75
- Verizon (VZ): €11.47
- Clorox (CLX): €6.42
- AbbVie (ABBV): €21.59
- General Dynamics (GD): €7.55
- Texas Instruments (TXN): €10.88
- Starbucks (SBUX): €11.07
November’s dividend income total came in at €107.88 ($119.20). Compared to November 2018, this is an increase of 51%.
|January||€ 97.98||€ 25.26||+ 288%|
|February||€ 89.69||€ 55.35||+ 62%|
|March||€ 166.57||€ 107.33||+ 55%|
|April||€ 84.59||€ 84.92||+/- 0%|
|May||€ 326.18||€ 177.26||+ 84%|
|June||€ 160.66||€ 103.13||+ 56%|
|July||€ 78.05||€ 50.96||+ 53%|
|August||€ 119.56||€ 190.84||- 37%|
|September||€ 185.06||€ 125.87||+ 47%|
|October||€ 46.78||€ 54.34||- 14%|
|November||€ 107.88||€ 71.56||+ 51%|
|Total||€ 1,463.00||€ 1,163.80||+ 26%|
It feels good to see the cash flow evolving and getting bigger. Sure, it’s a slow process. But yet I’m progressing nicely and this is what counts for me. November marks another month with a triple-digit monthly dividend income. So far six months have crossed that milestone in 2019 and I expect December to be the Nr. 7. Looking at the cash flow distribution, January, April, July, and October are usually the weakest months in my portfolio. I aim to give them more attention in 2020, so they can reach the €100 mark as soon as possible.
From the cumulative perspective, things are looking fine as well. With November in the books, this portfolio has produced a YTD dividend income of €1,463 ($1,617) – which is 40% more than in the same period last year. Dividend income per month is at €133 ($147) and I expect this number to increase slightly with the help of December’s dividends.
Speaking about December, I estimate its cash flow to come in at €163 ($180). This would result in a total annual income of €1,626 ($1,797) at the end of the year. Hence, it seems like I’m going to miss my personal goal of collecting €1,650 ($1,825) in dividends in 2019. No big deal, as the miss is just marginal in its impact. Furthermore, I’ve adjusted this goal upwards during the year. Initially, the annual income goal for this portfolio was at €1,588 ($1,755).
In November 2019, one company that I own in this portfolio has announced a dividend increase:
- Becton, Dickinson (BDX) is raising its annual dividend by 2.6% from $0.77/share quarterly to $0.79/share quarterly. So just a marginal 2 cents increase by a very low yielding stock. Needless to say that I’m not very pleased about this announcement. On the other hand, any dividend hike is better than a freeze or a cut. Let’s view it from a positive perspective. Also, I like the medical devices business a lot. BDX’s products are helping millions of people. Although I’m not happy with the dividend development, the business itself is expecting to grow at high percentages in the future. For that reason, I continue to hold my shares.
One month left to go and I keep my focus on the simple things. This is to continue building the cash flow. Indeed, very simple and straightforward. Look, the average dividend income is standing at €133/month at the moment. Next year, I will push as much as possible to reach €200/month. One day, I’m going to be in the position where this portfolio will generate €1,000/month, then €1,500, then €2,000/month. Just imagine, it will all come from dividends and all be reinvested back into producing more cash flow. This is a long-term strategy, but a very powerful one.
By investing in companies that increase the dividend consistently, I can simply lean back and watch the monthly income grow, and it will grow regardless of market conditions. The market is up? So what, I will get paid. The market is down? No problem at all, I will get paid as well. Isn’t it a peace of mind, to know that the market is going to have a hard time correcting the dividend income? For me, it’s in fact liberating. I wish you all good fortune and success for the remaining month of the year.