We are one month away until the end of the year. I for one can’t wait until 2022 is over. This year sucked in so many ways it’s not even funny. In any case, there is no use crying over spilt milk. Although my Dividend portfolio is small, I can count on my Dividends coming in month after month. The dividends come in whether it rains or shines, whether I am healthy or not, whether I had a good month or not. Of course, I still have to watch my portfolio carefully to ensure that the companies I invest in don’t reduce or eliminate their dividends. But that’s a small price to pay for the value I get investing in dividend growth stocks. So, that being said, let’s see how much dividend income I earned in November 2022.
Dividend Income
In November 2022, I earned $25.13 in dividends broken down as follows:
$25.13 in dividend income is not bad. As indicated in previous posts, I possibly won’t have a job starting sometime next year, so it’s unlikely that I will be increasing the contributions to my dividend portfolio – but it is a small possibility. For all practical purposes, I will be retired sometime next year (or in 2024). However, there is also a small possibility that, after awhile, I may get a low paying job to help fill the time. I’m thinking working as a Barista at Starbucks, or perhaps a bartender at a bar. The world will be my oyster, so to speak.
Of course, there is also the possibility of me keeping my job in which case, that would be a good thing. But I am hoping for the best and planning for the worst. We shall see.
Annual Income
Here is a graphical representation of the dividends earned in November in relation to dividends earned in previous years:
Here is the raw data:
Wow, what a pleasant surprise!!! For the first time this year, my annual dividend growth rate is positive. I’ve earned 30.01% MORE dividends this year than I did in 2021. Not only that, my dividends has increased since 2019! However, it is still far off from what it was is 2018, but I’m just glad to be back in positive territory. It’s a huge motivator to keep going. Clearly my portfolio size is small, but it’s these little wins along the way that helps.
Forward Annual Dividends
At the time of this writing, the forward annual dividends is $397.64. A month ago, my forward annual dividends was $391.57. This represents a modest 1.55% growth from the previous month. It could be better and I know that there this is much work to do – but I’ll take it.
I am very confident that this will cross the $400 mark by the end of the year!
Right now, I am keeping things the same for the rest of the year. Come January, I will reassess my goal for the new year.
What Expenses Would Dividends Cover?
Here, I visualize what expenses my annual dividend income could pay for. This is one of my favorite parts of pursuing dividend growth investing.
$397.64 per year is $33.14 dividends per month, on average. At present, I earn enough in dividends to cover Acorns, Amazon Prime and Netflix.
The following is a list of expenses I am targeting:
Technically, the next bill I am targeting is my student loans. The current balance on my student loans is approximately $5,000. I am grateful that I was able to pay down my student loans to that amount. It has taken me YEARS and the original balance was over $100,000.
Currently, the minimum payment on my student loans is $0.00 because I am in deferment until June 2023. The previous payment was $19.59, which is what I am tracking here. I am anticipating that my student loan balance will be either forgiven or cancelled and I won’t have to worry about it anymore. If I am wrong, I should hopefully be able to payoff my student loans in 2023. So, I will continue to track the student loan balance here and remove it from the list at the appropriate time.
Finally, I may need to reassess my expenses. I anticipate that I will have enough money to fund my current lifestyle for the rest of my life. I won’t be rich, but I also won’t starve. But, I may need to look closely at what I am spending money on if and when I don’t have a job income to rely on.
Final Thoughts
Life is still uncertain and unpredictable. That actually is a comforting thought. This was an encourage report as for the first time this year, my annual income in dividends exceeded what I earned in 2021.
I can’t wait for 2022 to be over. I am excited to see how I will finish out the year and, if I may dare say it, I am slightly hopeful that 2023 will be better. But only time will tell. Wish me luck.
Finally, I have a big decision to make that will affect my financial situation over the next four months (and potentially for the rest of my life). So, stay tuned for my next post.
How was November for you? Did you break any records? Let me know your thoughts by commenting below.
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