A new dividend income report! Another month is complete so it’s time to update my dividend income tracker and see where we are. December 2021 income is the biggest paying month for the entire year, so you know this is going to be a good post. in fact, it’s put here as one of my highest paying months on record. December 2019 still holds this but December 2021 is *so* close to beating that. I hope that in a years’ time I will be posting a new record number.
I love writing about dividend income; I wish I could inspire everyone to try it out! I promise you it isn’t as scary as it sounds 
Consistency is key when it comes to building dividend income. Slow and steady will win the race in twenty years time, it should be paying us a decent income for doing nothing. What could be better than that!?
See also: Dividend Income
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, I am hoping to say we can do this. Imagine how much freedom we’ll have then
In fact, I’m sure we will be able to at some point, if we continue on the same path. It will be so exciting when we get to pay our fixed expenses with passive income. That’s the dream, right there 
In fact, I am aiming to have £1,000 a month on average to ensure this. Of course, some months pay out more than others but an average of £1,000 a month would be great. However, as you’ll see in a second, I am so far from this 
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. Slow and steady wins the race. I am never going to be able to invest huge amounts, so this is something that will take time. In fact, our budget seems really stretched at the moment but because I reinvest the dividend received, it builds up more quickly. The end of the year seems to be a good payout time for me.
Dividends received in December:
– Unilever – £16.19
– Vanguard FTSE UK All Share Index – £219.67
– Vanguard Global Emerging Markets – £67.03
– Vanguard US Equity Index – £32.75
Total: £335.64
Look at that! Such a great total for one month 🙂 this would pay for our council tax, water rates, internet plus both our mobile phone bills. Paying our fixed expenses is the long term aim. 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 they are inside that tax free wrapper. I would recommend Hargreaves Lansdown as a provider; such an easy and simple website to navigate.
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. If you are wanting to know about frugal living, then here are 30 easy tips to get you started.
My dividend income aim for 2021 was £2,000 received. At the end of the twelfth and final month I’m up to £1,428.54 which is the highest year I have had, so far! Yes, I could focus on the fact that I have not met the target set. But, it’s still a great number.
This is it broken down a bit further into different numbers which I find interesting – the next aim is to get that daily average to £5:
Then, once I’ve broken that barrier, the only way is up (hopefully!) and building that average number so it eventually replaces our fixed expenses.
Here’s a visual look at my dividend income since I started this process:
So, here’s to 2022 and building that passive income stream! Can I hit that £2,000 mark this year?! Here’s hoping 🙂
Have you received any dividends this month? Thanks for reading!
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Great blog, Nicola.
I’ve been investing for growth until now. Although I’ve not done too badly, I find the ups and downs worrying and I never feel confident enough to extract any income. Your blog has made me think about dividend investing. I could stop worrying about the value of my portfolio and just sit back and wait for the dividends. I think I’ll do a small trial for a year.
Thanks and best wishes!