Another dividend income report time! I truly enjoy writing these and reflecting on how the numbers are looking. I am so excited to see what the numbers add up to at the end of this year. However, shares have been particularly rocky this past few days, so it’s always a bit tough to see the numbers go down. But, unless I sell my holdings it doesn’t have an immediate impact. I need to remember that!
2017 was a great year for my dividend income and I still believe in creating this passive income stream. I absolutely smashed my target last year and am hoping to do that this year, all being well. February seems to be a quiet month for income with the holdings I have. But, it’s income that I’m receiving for just being invested in various companies. Although I need to keep an eye on the market and the companies I am invested in, it is fairly passive in its nature. I have it set so that the dividends are kept in my ISA and so I can reinvest them where I see appropriate immediately.
Eventually, the aim is to use the dividend income to pay some household bills. Things like council tax, or water rates. That’s when passive income really takes over. We are such a long way off this! To pay fixed expenses each month from passive income would be amazing. To be able to pay for things that we have no control over, such as our council tax or the water rates, by using dividend income would take the pressure off other areas of money. One day, this will be our reality. I can’t wait until this point 🙂
The dividend income received in February is a combination of dividends from shares and funds. There are always going to be swings in terms of how much income is produced by dividends, just because different holdings pay out at different times. In February 2017 I received £21.79, which wasn’t too bad.
Dividends received in February:
- BT Group – £14.55
- CF Woodford Equity Income – £1.01
- Premier Monthly Income – £0.62
- Vodafone – £4.24
Total – £21.39
Not too bad for the second month of 2018. It’s less than last year’s February income as there was a special dividend payment last year which hasn’t been repeated this year. But, it’s still plodding along nicely. At the moment, all dividend income received is reinvested. Because my holdings are within my stocks and shares ISA with Hargreaves Lansdown, I don’t pay any tax on them either.
As I wrote about the effect of the magic snowball, mine is beginning to move slightly. By reinvesting the dividends, it’ll only create more income. I believe that continuing to live a frugal lifestyle and save as we go along will see us right in the end. I hope this is inspiring someone else to begin their frugal journey. If we can do it, anyone can! We are not depriving ourselves of anything, just making purposeful choices and it’s beginning to pay off. Literally!
My dividend income aim for 2018 is £800 received. At the end of February, I’m up to £110.24 so it’s been a good start 🙂 still a long way to go until that aim though! Although there are some months throughout the year where there is little paid, the overall trend will still be upwards. I can’t wait 🙂
Have you received any dividends this month? Thanks for reading!
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Ooh this is interesting – I’ve been meaning to sort my ISA before April (and have been meaning to for…. about 2 years) so I’m going to look into a stocks and shares ISA! I’ve not tried passive income but this has inspired me to make a start – as you say, all snowballs start small and move slow at first 🙂 Looking forward to seeing how your income grows this year!
Thank you! Definitely have a look at starting – even little bits add up over time 🙂
Wow, this is something I’ve never really thought about before but I’m going to look into it now. A passive income sounds like a good thing!
Definitely have a look into it! Let me know how you get on 🙂
Well done and keep it going! I would say move your Woodford Equity though, this is one of the worst performing funds. I moved it last year and have made 10% more since then – you need to keep on eye on actual fund/share performance and not just the dividend income. I recommend fundsmith or evenlode which are income funds but much better performers.
I do keep an eye on performance as well as dividends – I have sold a couple of funds in the past year due to underperformance. Thanks for stopping by!