A new dividend income report! Another month is complete so it’s time to update my dividend income tracker and see where we are. September 2021 income is the biggest paying month I’ve had so far this year! in fact, it’s put here as one of my highest paying months on record. December 2019 still holds this but September 2021 has been an exciting number. Plus, dividend investing is a long term journey and I’m still in the building phase! Imagine where this might be in 5 years time.
I love writing about dividend income; I wish I could inspire everyone to try it out! I promise you it isn’t as scary as it sounds 
Consistency is key when it comes to building dividend income. Slow and steady will win the race in twenty years time, it should be paying us a decent income for doing nothing. What could be better than that!?
See also: Dividend Income
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. One day, I am hoping to say we can do this. Imagine how much freedom we’ll have then
In fact, I’m sure we will be able to at some point, if we continue on the same path. It will be so exciting when we get to pay our fixed expenses with passive income. That’s the dream, right there 
In fact, I am aiming to have £1,000 a month on average to ensure this. Of course, some months pay out more than others but an average of £1,000 a month would be great. However, as you’ll see in a second, I am so far from this 
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. Slow and steady wins the race. I am never going to be able to invest huge amounts, so this is something that will take time. In fact, our budget seems really stretched at the moment but because I reinvest the dividend received, it builds up more quickly.
Dividends received in September:
- Aberdeen – £36.50
- Legal & General Group – £20.72
- Lloyds Bank – £6.70
- SSE – £25.47
- Unilever – £16.62
- Vanguard FTSE 100 Index – £151.24
Total: £257.25
Look at that! Such a great total for one month 🙂 this would pay for our council tax, water rates and both our mobile phone bills. Paying our fixed expenses is the long term aim. At the moment, all dividend income received is reinvested. Because my holdings are within my stocks and shares ISA with Hargreaves Lansdown, I don’t pay any tax on them either, as they are inside that tax free wrapper. I would recommend Hargreaves Lansdown as a provider; such an easy and simple website to navigate.
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. If you are wanting to know about frugal living, then here are 30 easy tips to get you started.
My dividend income aim for 2021 is £2,000 received. As of now, I feel like this is a massive aim for us; it’ll be tricky to reach but I am going to continue to invest with my strategy and hope. To get that means an average of £166 a month, which as you can see I’m a bit off. At the end of the ninth month, I have received £967.26 so I’m still so behind. We’ll see what the rest of the year brings. December tends to be the biggest payer during the year so it leaves it all til the final hurdle, so to speak! We’ll see 🙂
Have you received any dividends this month? Thanks for reading!
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Another great total Nicola, it’s always nice when you see a total that’s an increase on the previous month!
I mentioned on an earlier post that I was aiming for £500 in dividend income this year (first full year of investing), and I’ve actually achieved it as of the end of September 🙂 thanks to going over £100 for the first time in August and being close to that figure in September too.
I’ve diversified into investment trusts recently, including a UK one that holds a lot of the individual companies that I had shares in – so I ended up selling a fair few of my holdings. It’s worth it though if it reduces the amount of holdings I have. I’m not sure how Hargreaves Lansdown handles ITs but maybe it’s something to look into to see if there’s one that holds some of your individual company shares?
Let’s hope the good run continues for us all.
Well done for reading your first goal! 🙂