Another month has passed and just like that the winter is over. I already had an outside ride with my bike a few days ago to mark the beginning of spring. It’s still quite cold but the days are getting longer and brighter which is a good thing. Our baby-daughter is growing well, learning new things and giving us a lot of joy. There is just some uncertainty everyday if we will have a good night sleep. One thing is certain, though: companies will pay some dividends to our account. Let’s see how much we received for doing nothing this month.
This month 4 companies paid dividend to me:
I am getting closer and closer to receive $20 during the second month of the quarter, so I can’t complain.
As always, let’s try to see what part of our family’s expenses in related categories these dividends could cover if we decided to spend them:
- $6.78 from AT&T would cover 19.5% of what we spent for cellphone bill for the last 3 months;
- $4.52 from Procter & Gamble would cover 3.5% of our cosmetics & hygiene expenses for the last 3 months;
- $6.05 from Starbucks would cover 2.3% of our Eating out expenses for the last 3 months;
- $2.53 form Realty Income would cover 0.4% of our monthly rent.
There is long way to go for dividends to cover significant amount of our monthly expenses but performing this fun exercise gives me motivation to keep going.
Let’s compare dividend income to what I received this time last year:
Increase of ~48% is not bad. Having an ambitious goal to double my passive income compared to last year will not be achieved at this pace, though. Hopefully, I will be able to pick up the pace as the year progresses.
Looking at the source of increase, the purchase of Starbucks last year was the main driver. However, I shouldn’t disregard that all other payers increased their dividend compared to last year. That’s one of the reasons why I love dividend growth investing. The income keeps growing without doing anything additional.
This is how my dividend income progress looks like since the beginning of 2016 when I started tracking it:
Purchases and Portfolio Contributions
This month I contributed €600 to my investment account. I haven’t initiated any purchases but moved AT&T from the old broker to the new one and purchased a few more shares in the new broker. Now I own 22 shares of AT&T instead of 19. The increase of shares and lower tax on dividend income at my new broker resulted in $11.02 increase in Projected Annual Dividend Income.
I haven’t added any funds to P2P lending platform this month.
This month one company increased their dividend:
The growth of dividends is slower so far compared to 2018. I guess this was bound to happen as companies were really generous last year due to the tax reform in U.S. Every little bit helps in our journey to financial independence, so I will take the 6% raise.
Changes in Projected Annual Dividend Income (PADI)
As I mentioned in previous post, I created a goal for myself to increase PADI to $450 before year ends. To achieve that, I would need to increase PADI by $18/month in average. I will track the increase/decrease from two sources – dividend raises and capital investment.
Let’s see how projected annual dividend income changed during February:
February saw an increase of $13.13 in PADI which is lower than my target of $18/month. However, I am still ahead of schedule for the year so far, and I should be able to increase the number by more during March.
P2P Lending Income
This month I received €7.28 in interest from P2P lending. However, this month also marked the first loan to default in my portfolio. A loan with value of €13.74 was handed over to court, so I don’t expect to receive it back anytime soon. I decided to exclude this amount from my overall passive income calculation this year.
My loans portfolio currently consists of 67 loans for a total value of €721.15.
In total (after converting to EUR) I received €24.83 from passive income during February. If I exclude the defaulted loan (€13.74), my current income for the year stands at €34.97. This is behind target to receive €480 from passive income during 2019 but I am staying positive. I think I still have enough time to improve and the next few months should increase the pace.
How was your February? Are you sharing any of the companies that paid dividends to me? Are you on track to reach your goals? Thanks for reading and feel free to leave a comment below!