Even though it was a disappointing month for the Ultimate Dream Fund, it was still exciting to log in and see dividend payments received. I honestly don’t think that it’ll get old! No matter how small the payment is either, it’s just great. Just for owning a tiny part of a company and investing in them, believing in their ideals means we get paid dividends. That’s actual money back in our pocket ?
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 existing holdings recently, this hasn’t changed for quite a while. However, 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, these little payments might be enough to pay our council tax, or our water rates. There are bloggers that I read who receive hundreds of dividend payments a year. Imagine what that does for your financial freedom. Of course, their portfolios are much bigger than mine, but we all have to start somewhere.
The dividend income received in June is a combination of dividends from shares and payments 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. The majority of mine seem to pay out within the first six months of the year. In June 2016 I received £7.39 which was small but still better than nothing.
As part of our long term plans for early retirement, we need enough money in savings and/or income to make sure we can live on a budget long term. I am now counting on the small income stream that will come from dividend payments. The sooner we can get different income streams up and running, the sooner we’ll hit our aims! Slow and steady wins the race, after all 🙂
Dividends received in June:
Card Factory – £12.60
Morrisons – £5.78
Premier Monthly Income – £0.62
Sage Group – £7.83
Standard Life Inv UK Real Estate – £0.46
Whitbread – £26.36
Total: £53.65
My second highest dividend income to date! This is partly because Whitbread have paid out on the last day of June instead of July like last year. Still, it makes the total look much better. In June last year £7.39 so this is a whopping 625% (!) increase. Now, I’m not the best at maths but that’s insane. If only I could replicate that often!
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 June, I am over target by quite a lot! I am up to £236.56. 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 am getting quietly confident that I am going to smash my 2017 aim 🙂
Have you received any dividends this month? Thanks for reading!
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