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.
With the individual holdings I currently own in my stocks and shares ISA, I will get 62 mini pay checks a year. As I have only added to one of my existing holdings recently, this is unchanged. But, that’s more than one a week ? Adding a slow but steady income stream by investing in dividend payments has been one of the best decisions I have made so far. One day, this income stream will start to pay our bills. That’s when the magic happens! Imagine creating passive income which pays your monthly mortgage payment, your council tax or your electricity bill. That’s the dream, right there.
The dividend income received in July 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 July 2017, I received £28.79. Not bad, but this year is better 🙂
Dividends received in July:
Glaxosmithkline – £25.65
Marks and Spencer – £11.90
Pets At Home – £15.00
Premier Monthly Income – £0.61
Standard Life Inv UK Real Estate – £0.40
Total: £53.56
Almost the same as last month! This would pay our council tax bill for the month, which is amazing. Or, both our mobile phone bills. In July last year I received £28.79 so this is an 86% which is awesome! If only I could replicate that each month. The earlier ones will always bigger in terms of increase.
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 July, I am over target by quite a lot! I am up to £290.12. Although there are some months throughout the year where there is little paid, the overall trend will still be upwards. I can’t wait ? this is so close to my yearly aim already – I can’t quite believe it! 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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Good joob if you could get that increase everymonth you would be swimming in money. lol. Keep it up
Nice, every bit of extra income is always good to have. keep growing that stash!
Hi!
I enjoy reading your blog – thank you 🙂
I’m learning about investing and have a question – why do you invest for monthly dividends, rather than a passive index tracker? How did you get started/what resources pointed you in that direction?
Reason is I have a vanguard lifestrategy, but am wondering if, compared to what you’re doing, your method is potentially earning more because each time you skim of the dividends and reinvest, you have more and more funds, although you’re buying them at probably a higher price each time, you’ll have way more funds than I do with the VLS which is just the same amount of funds and hoping they go up over a long period of time.
Hope that makes sense! Keep up the good work!
Thanks for your comment! I read a lot about dividend investing before diving in, so to speak. There are some very popular American dividend investor blogs where they make $1,000s a month which was very inspiring. I also have some holdings in Vanguard, as it’s a safer option than in individual shares. I do reinvest the dividends every month we receive them, although the prices fluctuate that way I suppose. The vanguard pays out once a year, so you still get dividends that way, just not as often!