I received over $450 dividend from 32 different companies last month.
I always get excited to see cash filing-up in my accounts for doing nothing, even get more excited when they come from many different high-quality companies.
I am not a rich person (yet) and I don’t have a job with six figures salary, but I have a dream to become rich and live the life I always wanted. In other words, I want to be financial independence so I can spend my time for the things that I love to do and live the life with purpose, rather than living for someone else’s life purpose.
Currently, I am trading my time for money, but I am on my way to reach my dreams. This dividend income is just a small sample. If you look at this as a number, then $450 is a small amount. But, you should know that it is compounding faster and faster every year because I am reinvesting the cash and buying more income to boost my cash-flow.
Thus, next time I will receive a slightly bigger amount and I will keep reinvest them and buy even more assets.
And, if I continue to do this for a couple of years, then I can easily replace my day job salary with the income received from my investments.
Meantime, I will need to work for someone and make money, and also I will need to make a small sacrifice and delay gratification to focus on my bigger goal – financial independence. Once I reach the goal, my life will be different.
On this website, I have been documenting my financial independence journey and posting almost all my financial information because I really wanted to show that anything is possible for anyone if they have a right mindset, and also I love to motivate people to start thinking about their dreams and life goals.
Please understand that if I can do this with my moderate salary, then you can do it too. All you need to do is find your life purpose, dream big, set goals and take action to get there.
As always, I strongly encourage readers to consult a qualified financial adviser, consider potential tax implications and to do their own proper due diligence before taking any information from this website.
Let’s get back to the numbers.
Dividend Income – May 2018
I received $454.51 dividend in May 2018, which is 19.34% higher than the dividend I received in May 2017.
Summing up all the dividends I received in 2018, I came up with $3413.69. One of my short-term goals is to receive at least $9000 dividend income during the year of 2018. So far, I achieved 37.93% of the goal and seems like I am on track to reach this goal.
Dividend income from Canadian stocks
- FC – $7.80
- CGX – $14.00
- XRE – $9.90
- CPD – $4.90
- NWH.UN – $3.33
- NVU.UN – $9.51
- DRG.UN – $3.33
- CAR.UN – $3.20
- REI.UN – $12.00
- ZPR – $1.90
- ZDH – $6.57
- PWF – $64.96
- MRG.UN – $5.50
- BEI.UN – $10.43
- ALA – $27.38
- EMA – $45.02
- IPL – $7.00
- RY – $75.20
- BMO – $46.50
- DIV – $1.48
Dividend income from Small-cap Growth portfolio
- DIV – $1.48
Dividend income from U.S stocks
- PG – $8.61
- KMI – $10.00
- HRL – $4.69
- CL – $2.10
- CVS – $7.50
- VZ – $8.85
- GIS – $12.25
- T – $18.50
- O – $2.20
- OHI – $13.20
- SBUX – $3.00
- HCP – $3.70
Total dividend I received from U.S stock holdings: $94.60
Total: $454.51
Total dividend I received for year 2018: $3413.69
Please note that I do not convert dividends received from U.S stocks to the Canadian dollar, and I use a 1 to 1 currency rate approach to keep the math simple and avoid fluctuations in my dividend income reports due to changes in the exchange rate.
Estimated passive income
For those new to this site, the Estimated passive income is the income I estimated to receive in a year based on my current investments holding and their distribution rate.
My Estimated passive income is currently at $9320.
One of my long-term goals is receive $25000 dividend income from investment portfolios. I have achieved 37.28% of my goal.
I am very happy with my results and achievements so far. I hope I am moving in the right direction toward my long-term financial goals.
Learn about finance, live within your mean, save and invest in high-quality assets will help you reach your financial goals, and the process is much earlier than you think.
Thank you so much for your great support, encouragement, and being in my financial journey.
You are definitely moving in the right direction and reaching 37.28% of your goal in almost 4 years out of 10, but $25K per year could be enough for your financial independence only if you are debt free by the time you reach it, as if you make only $25 per year you’re left with almost nothing after you pay your mortgage.
I live in a cheaper area than you do and I bought a condo, not a house, and even though my mortgage payments are lower than yours (and currently my mortgage is my only debt) I wouldn’t be able to live from $25K per year if I also need to pay my mortgage. Being as frugal as can be $2K per month is just enough to survive (and not anything more than that) for a couple without children and without housing expenses and you have a child.
I remember you said that if you didn’t have a student loan and a mortgage to pay and didn’t buy anything unless it was very essential then your household could live off of $2K per month and you even mentioned your expenses and showed your calculation, however, a few expenses were missing, for example:
Home maintenance
Home insurance
Life insurance
RESP for your child
Leisure expenses
Emergency fund
Taking the above into account would put your expenses above $2K per month even if you were debt free, are you absolutely sure that when you reach $25K per year you could retire?
It is true that once we retire we no longer have work related expenses, but it is also true that once we have unlimited free time we look for fun things to do with our free time and most hobbies and activities cost money. Old people don’t have as much energy as young people do, so for them the expenses after they retire are lower than when they used to work (assuming they retire at the age of 65) but if you retire in your 30’s you wouldn’t live your life like a 60+ years old man, you’d like to enjoy the long freedom you achieved as a young man and live your dreams and that’s not going to be cheap and I bet that your dream wasn’t retire as young as possible just in order to barely survive.
I could be wrong and maybe it is only your dream to retire young but your wife doesn’t want that and would work at the same time you’d be a very young retiree, in that case $2K per month would definitely be enough for you alone (assuming you are debt free), though I don’t consider that option to be very likely as most couples want to retire together.
What am I missing?
Hi Alan,
Thank you for your comments 🙂
I think this is the post you are referring to:
https://www.financejourney.com/how-much-money-do-i-need-to-retire/
Currently, Let’s say I spend around $3500 per month (I would say I am good at spending), which includes mortgage – $965, student loan – $295 and bus pass – $147, debts charges – $325. When I retire, I would consider eliminating these expenses. So, I just need around $1750 per month once I eliminate these spending.
If I quit my job, I will be in a low-income family. Thus, I will get over $500 per month from child tax credit. So, I just need $1250 per month from my investments. If I receive around $2000, then I will put $750 for the emergency fund or reinvest it for more dividend income. Also, I invest in dividend growth stocks, which means my dividend income won’t stop at $25000 per year after I stop contributing. It will keep growing year after year. This will take care of inflation. I hope this makes sense.
But, my financial independence doesn’t mean I stop work right way. It means I will do something that I am interested in (blogging, small business, etc), and I no longer wait for pay cheques to cover my expenses.
And, I think my wife is already retired :D. I don’t think she will return to work anymore.
Cheers,
Hi,
My well wishes for your success. You can get much better results by owning growth stocks instead of matured dividend paying companies, and reach your goal much faster. Just my advise.
Hello Serge,
Thank you for stopping by and your suggestions.
I would prefer to stay with dividend growth investing. I understand that growth stocks may return will be higher than dividend stocks, but I like slow by steady approach.
Best Regards,
Hello,
Just found your website and I am thrilled to see someone else across the pond with similar approach and goals as my own. I am growing my assets every month and I just started to diversify into Canadian and U.S. stocks. Keep up the great work, it’s inspiring to see others ‘one the same journey’.
PS, check out W.P. Carey Inc. for a well diversified, high yielding REIT with a solid track record.
Hello Norwegian,
Welcome & thank you for stopping by 🙂
I am glad to meet with people with similar mind-set 🙂 W.P. Carey is on my watch list. Due to the unfavorable currency rate (CAD vs USD), I’ve just paused buy U.S stocks temporarily, and I will start to diversify in U.S and U.K stocks one our currency get a life.
Best wishes