Dividend Income February 2020

Another dividend income report – yay! I love writing about dividend income; I wish I could inspire everyone to try it out. I promise you that it isn’t as scary as it sounds! Consistency is the key when it comes to building dividend income. Slow and steady will win the race  Five years ago I had yet to receive my first dividend payment, so this just shows what a little time and patience can achieve! Although the markets have been quite volatile lately, I just need to sit it out and continue to follow with my plan. In fact, just the past week alone has been very negative in terms of the stock market. Hopefully it’s just a bit of a blip.

 

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! 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 🙂

 

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. 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. We will get there!

 

Dividends received in February:

Brown Group – £14.15

BT Group – £23.10

Legal & General US Index – £18.59

Vodafone – £18.99

Total: £74.83

 

This is nearly £20 more than last February, so I’m happy with that.  This would pay our water bill for the month  At the moment, all dividend income received is reinvested, but it’s nice to know that we could cover a smaller 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 2020 is £1,600 received. As of now, I feel like this is a massive aim for us; it’ll be tricky to reach but I am going to continue to invest with my strategy and hope. To get that means an average of £133 a month, which as you can see I’m a long way off! At the end of the second month I’m up to £135.41 so very much a long way to go!  Here’s a visual look at my dividend income for the past four years, with 2020 being added as the red line:

 

Have you received any dividends this month?  Thanks for reading! 

 

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