Dividend Income January 2019

Time for my favourite monthly post – already! My dividend income updates are some of my most popular posts here at The Frugal Cottage. And this is my fourth year of dividend investing, already. I can’t believe it! And one of the only things I regret is not starting sooner. If you’re putting off investing, because of the risk or thinking you don’t have enough to start, then please do. You can start with £25 a month into a low risk fund and go from there.

 

Four years ago I had yet to receive my first dividend payment, so this just shows what a little time and patience can achieve! When that first, small payment landed in my account, it was such a good moment. And it’s only grown from there. Although the markets have been quite volatile lately, I just need to sit it out and continue to follow with my plan.

 

See also: Dividend Income

 

Some months are so much better than others as the income received varies so much. I do have some months which are lower than others, but the start of the year is fairly strong at this point.  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. I am quietly confident that we will be able to do this, in the long run.

 

The dividend income received in January 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 January 2018 I received £88.85. This year is actually slightly less than last year, due to a special dividend not being paid. Still, it’s a good start 🙂

 

Dividends received in January:

Brown group – £11.32

GlaxoSmithKline – £25.65

Halfords – £6.18

Marks and Spencer – £17.00

Next – £11.00

Pets at Home – £7.50

Total: £78.65

 

Not a bad start to 2019 at all! 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 2019 is £1,000 received. At the end of January, I have made a great start! 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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