This post signifies the end of my second full year of investing. I can’t believe I’ve been able to write these updates for so long! I have been debating whether to change the frequency of these updates, but as I believe strongly in creating this second income stream, I shall continue for now. Do you find them interesting? Two years ago I had yet to receive my first dividend payment, so this just shows what a little time and patience can achieve!
See also: Dividend Income
Some months are so much better than others as the income received varies so much. The final month of the year seems to be a great one for dividend income, as you shall see 🙂 and all for doing nothing! 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, I am hoping to say we can do this!
The dividend income received in December 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 December 2016 I received £20.73 in dividends. This year is better 😉
Dividends received in December:
- Card Factory – £35.80
- Premier Monthly Income – £0.11
- Standard Life Inv UK Real Estate – £0.47
- Vanguard FTSE UK All Share Index – £116.48
- Vanguard Global Emerging Markets – £12.58
- Whitbread – £18.84
Total: £184.28
Look at that…..!! Only last month did I mention about aiming for my first three figure month, not knowing that I would smash through that in the next. Woohoo! This would pay our council tax and our water rates. That’s seriously amazing! At the moment, all dividend income received is reinvested, but it’s nice to know that we could cover a significant bill using this. 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 2017 is £300 received. At the end of December, and indeed 2017, the final total for dividend income received is £654.06. I have well and truly beaten my target. When I wrote about receiving £300 at the beginning of the year, I honestly thought that might be a stretch. Look how wrong I was! Not that I’m complaining. I’m so excited to see what that number is at the end of 2018 🙂 Here’s a visual look at my dividend income for the past two years:
Have you received any dividends this month? Thanks for reading!Â
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Nice!! Love seeing these updates.
Hi, please can you tell me if your Vanguard FTSE UK All Share Index pays dividends each month or once a year? Also how much do you have invested in that fund? Thank you 🙂
I only started following your blog a couple of months ago. It’s amazing how your income has built up so quickly. Do you choose your own investments or are they in a managed portfolio with Hargreaves Lansdowne. Well done on such an achievement.
Yes, do keep the updates going. You’re an inspiration for us all to save and manage our money better. Thanks for being so open.
I love seeing your updates. Think I might have to start making a diary of mine although my aim for 2018 is only going to be a small £50, I know we all have to start somewhere.
You smashed it!
No dividends as I’m in accumulation funds! Not as satisfying as seeing those juicy dividends come in though!
It’s definitely helpful – this was my first port of call when thinking about dividend investing because I know it’s something you explain honestly and simply. Keep them coming!