Investing for dividend income is incredibly interesting. Some months are so much better than others. The income receives varies so much month on month. August has definitely been a good month! I have been dividend investing for a while now, to create another passive income stream. Although I need to keep an eye on the market and the companies I am invested in, it is fairly passive in its nature. And, as I have said many times before, it is so exciting to log into my s&s isa and see another dividend payment. No matter how small either! 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, I suppose 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! However, it is definitely a long term goal.
The dividend income received in August is a combination of dividends from shares or from 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 August 2016, I received £36.07 in dividends. Not bad, but this year is better 😉
Dividends received in August:
- Brown Group – £34.24
- CF Woodford Equity Income – £1.81
- Halfords – £11.68
- Next – £30.00
- Premier Monthly Income – £0.62
- Standard Life Inv UK Real Estate – £0.46
- Vodaphone – £8.95
Total: £87.76
Look at that! That’s so close to being three figures. I’m so amazed to be honest. I never imagined being able to receive that kind of income so quickly. And because my holdings are within my stocks and shares ISA with Hargreaves Lansdown, I don’t pay any tax on them either. This amount would pay for our electricity/gas direct debit. That’s so exciting!
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.
My dividend income aim for 2017 is £300 received. At the end of August, I am way over my target, for the entire year! I am up to £377.88 so I’ve smashed through my target! Although there are some months throughout the year where there is little paid, the overall trend will still be upwards. I can’t wait ? I thought I was being optimistic when I set that original goal. So it’ll be interesting to see what my yearly total ends up being.
Have you received any dividends this month? Thanks for reading!
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I love reading about your dividends, so much so that I started investing recently and got my first dividend in Aug too, only £3.50 but I was over the moon.
We all start somewhere – that’s great! 🙂