After the bumper income in dividends last month, September was always going to be a let down. Only slightly kidding! Some months are so much better than others as the income received varies so much. 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. I sometimes save them so that I can invest in a big lump sum when I transfer my savings over for the month.
Eventually, I suppose 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! However, it is definitely a long term goal. At the moment, I am aiming for my first three figure month from dividend income alone.
The dividend income received in September 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 September 2016, I received £12.22 in dividends. Not much really, but this year is better.
Dividends received in September:
- BT Group – £31.65
- Lloyds Bank – £4.00
- Premier Monthly Income – £0.62
- Standard Life Inv UK Real Estate – £0.42
Total: £36.69
So, lots less than the previous month. However, still a good amount at this stage of the game! And definitely better than last year 🙂 so we’re building our income stream, just like we planned. This would pay for my mobile phone bill for the month, so it would cover a small bill. Also 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.
My dividend income aim for 2017 is £300 received. At the end of September, I am up to £414.57 so I’ve smashed through my target! Although the final months in the year are generally lower income ones, I’m still earning money right through. 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 – can I break the £500 mark??
Have you received any dividends this month? Thanks for reading!
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