It’s been a while since I have written one of these. In fact, I haven’t been able to invest in quite a long time now. My life looks very different to the one it used to be. But, even though I have focused on surviving, my dividend income continues to be paid. That’s the joy of dividend investing; even when times are tough, it still continues. So, this is a new dividend income report. In fact, it’s a great one to come back for, because this is my highest ever month. EVER. When I totalled up that final number, it was something positive to focus on.
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 me an 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. In some ways, I don’t know if I’ll ever be able to reach this now, given the massive change in personal circumstances. However, I am going to persevere.
To be able to pay for things that I 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 I can do this. Imagine how much freedom we’ll have then
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, my budget is really stretched at the moment but because I reinvest the dividend received, it builds up more quickly.
Dividends received in September:
- Abrdn Plc – £48.18
- Aviva – £103.00
- BT Group – £26.95
- Legal & General Group – £59.84
- Lloyds Bank – £8.00
- SSE – £39.13
- Unilever – £16.35
- Vanguard FTSE 100 Index – £204.89
Total: £506.34
Look at that! Such a great total for one month 🙂 in fact this is the first time I have ever gone over the £500 mark. So, milestone achieved. This would pay for my council tax, water rates, gas and electric and my mobile phone bill. Being able to pay my 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 when I can will see me right in the end. I hope this is inspiring someone else to begin their frugal journey. If I 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 2022 is £2,400 received. As of now, I feel like this is a massive aim for me; it’ll be tricky to reach but I am going to continue to invest with my strategy and hope. Things will have to change in the future but I’ll cross that hurdle when the time comes. For now, my total for 2022 stands at £1,413.70 which, whilst still an amazing number, is not where it should be. But, I’m focusing on the positives so this is good 🙂
Have you received any dividends this month? Thanks for reading!
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The Dividend Income reports, which triggered my interest and even belief in the concept, are back. And what’s more a bumper bonanza of a month, topping half a grand and as you note, you’ve, in such a short space of time, achieved a month where a raft of household bills are wiped away (even at a time like this) by your dividend earnings. Council tax, water bills, gas, electric and a monthly mobile phone bill – all covered by September ’22. Outstanding.
I appreciate your circumstances have altered, but being able to automatically reinvest your £506 straight off the bat, will add to your snowball. Its so comforting to know you are going to persevere. The long term benefits will be felt, the alternative i.e. not following the strategy will melt your snowball and erode your pursuit of freedom.
Having followed much of your advice i too had my best ever month in September (falling a few tenner’s short of your milestone. My October total is going to be really de-motivating in comparison (maybe 5% of the previous month!) but that’s not what i’m focused on, my focus, inspired by your musings is on building my magic snowball and where I will be in 3, 5, 10 years time.
Every encouragement and continual thanks for sharing your progress.
Only thing I would say is you need to be honest with how much you need to put in to get that type of dividend. A quick look at Unilever alone, means you will be holding around 1,000 shares at a cost of well over £4,000, which the vast majority of your target audience could only dream of having in the first place.