How are we in November already?! Frugal Baby is 1 next month – I am so not ready for that milestone already. And Christmas is just around the corner and we are not organised; I haven’t bought one Christmas present yet for anyone, which is unlike me. I feel like the end of the year is creeping up faster than ever. I need to start planning!
However, as another month is over, I get to write about my favourite topic: dividend investing. I mentioned that recently I have had a rebalance of my portfolio; I have sold some individual holdings and then reinvested the money into one fund. This way it is more simple to track and hopefully less volatile over time. But, this does have an impact on the frequency of dividend payments.
I love logging into my account and checking out if I’ve received any dividends. I log in fairly regularly to see if I’ve received any income. I do have written down which holdings should pay out during each month, but not the actual amount. In terms of my holdings, it’s been a bit of a ride in terms of numbers going up and down as valuations are somewhat rocky at the moment. My stocks and shares ISA is with Hargreaves Lansdown, which is very easy to use and I’d definitely recommend them. You can get information about that here or even open an ISA in about 5 minutes.
The aim eventually 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. 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. At the moment I choose to keep my dividend income within my account and reinvest so as the keep the ball rolling. The bigger the dividend income is – I’ve had three months so far this year with over £100 in dividend income – the reinvestment is more effective 🙂
The dividend income received in October 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 October 2017 I received £37.24 which wasn’t too bad. This year is actually lower than last year, due to selling of some holdings. Hopefully next October, it will be back up!
Dividends received in October:
GlaxoSmithKline – £25.65
Total: £25.65
Well, a bit of a difference from last month, that’s for sure. I know that there are months in the year where my income received is very low, and October is one of them. November also is, so I expect next month to be low too. But, the average over the year is still growing nicely so I shall focus on that 🙂 this isn’t the lowest number I’ve written about this year either. Even though this is lower, it’s still £25 for doing nothing! 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 2018 is £800 received. At the end of October I’m up to £647.13 so I’m still behind but feeling confident about reaching that aim still. December should be a strong finish to the year so I’m hoping that will push me over the finish line! Fingers crossed.
Have you received any dividends this month? Thanks for reading!
Follow me on:
Facebook | Twitter | Instagram | Pinterest
I am a fan of dividend income too and have an income portfolio but only invest in one fund. It is a multi asset global fun d and I am getting on average around 4% per annum. It works out at around £220 – £250 per month and is a nice addition to my pension as I am early retired.
That’s a great income every month – it must be nice to be so consistent 🙂
Low months happen, that’s why it’s so important to invest long term isn’t it. 🙂 As you say, it took no effort! You’re getting so close to your goal for the year, I’m looking forward to seeing you hit it!
This is true 🙂 and thank you, I hope I do!
It will be interesting to see whether you reach 800 GBP by the end of the year – although you are close, so you have done well! 🙂 I’m impressed that you would normally have bought Christmas presents in the beginning of November!
I know – I am hoping I will reach it! It might be tight but fingers crossed 🙂
Fingers crossed for your goal, its definately a slowly but surely mentality and very satisfying seeing it slowly build over time.
Thank you!
I’m interested to know how much capital you have invested to expect your goal of £800 by year end, care to share this? Thanks for your excellent and informative blog, Craig
I have just under £25,000 invested 🙂 and thanks!
Hi
Iam Swedendivin from Sweden a dividend investor 🙂
I have to say nice site and very good quality of post.
Greetings 🙂