Dividend Income Update - November 2014

Includes: APD, CLX, DE, GD, KMI, O, OGS, OHI, OKE, PG, T, TD, TIS, VER, VZ
by: Jason Fieber
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Another month has passed by, and it’s time for me to post an article on my favorite subject: dividend income. The reason why I love to post articles on dividend income is because it’s pure numbers. It’s hard to argue the success of long-term dividend growth investing when you can slowly and surely see dividend income rise over time and get closer to covering one’s expenses.

What can I say? It feels great to receive passive income. Waking up richer than you were the day before is a wonderful feeling, especially knowing that you didn’t have to do anything for it. Before you even go out into the world and try to make money for yourself, your money is already working hard on your behalf and generating wealth for you. All by itself. I’m a hard worker, but my money puts me to shame!

I hope these monthly dividend income reports provide inspiration for any investors out there that are just starting out. It’s easy to see these payments rising month after month and it shows that it’s possible to one day pay for monthly expenses with dividends, which would provide an investor opportunities and freedom to pursue interests other than full-time work. Without further ado:

November 2014 Dividends Received

  • AT&T Inc. (NYSE:T) – $23.00
  • Verizon Communications Inc. (NYSE:VZ) – $21.45
  • Toronto-Dominion Bank (NYSE:TD) – $12.72
  • Deere & Company (NYSE:DE) – $18.00
  • Air Products & Chemicals, Inc. (NYSE:APD) – $15.40
  • ONEOK, Inc. (NYSE:OKE) – $20.65
  • Clorox Co. (NYSE:CLX) – $25.90
  • ONE Gas Inc. (NYSE:OGS) – $2.24
  • General Dynamics Corporation (NYSE:GD) – $12.40
  • American Realty Capital Properties Inc. (ARCP) – $23.33
  • Procter & Gamble Co. (NYSE:PG) – $32.82
  • Omega Healthcare Investors Inc. (NYSE:OHI) – $31.20
  • Realty Income Corp. (NYSE:O) – $12.82
  • Kinder Morgan Inc. (NYSE:KMI) – $79.20
  • Orchids Paper Products Company (NYSEMKT:TIS) – $21.00

Total dividends received during the month of November: $352.13

What’s not to like about that? Over $350 I didn’t have to go out and work for. I remember back in 2005 just starting out in the auto industry, where I was a parts driver. So I would deliver parts to wholesale clients like body shops as well as other dealerships. I made $9.50 per hour at this job. So that means, over a full-time week of 40 hours of work, I would have grossed just a little more than what I was able to generate in passive income over the course of the last month. The me of 2005 would be proud. Hell, the me of 2014 is proud!

This tangible success is one of the big reasons I love this strategy so much. Stock prices fluctuate so much it almost seems unreal at times. But cash flow is very, very real. And it’s very, very nice.

A bit over $350 in passive income doesn’t render me financially independent. But it’s another step in that direction. And that’s what this journey is really all about: taking a step forward every single day. Success begets success. $350 begets $400 begets $475. So on and so forth. The snowball accelerates. Financial independence becomes more realistic.

This month’s dividend income was 89.2% higher than what I received last November. One year. Almost a 90% increase. I do love the sound of that, though these increases will naturally decline in relative terms as the absolute numbers grow. But it is, after all, the absolute numbers I’m really after.

I was able to cover 16.3% of my personal expenses this past month via dividend income alone. This is a bit of a disappointment, but I’m still working through some large, temporary expenses that will abate after the start of 2015. I’m looking for this number to improve dramatically as 2015 wears on.

December should be a blockbuster month for dividend income, and will likely compete with this last September for an all-time high. I’m extremely excited to finish the year strong and start the New Year off on the right foot. Every dollar of dividend income is of course wonderful, but the more the merrier!

I have a goal this year of exceeding $5,200 in dividend income throughout 2014. Now that November’s results are recorded, we can see that I’ve collected $5,036.73 in dividend income this year thus far. Bam! I just exceeded $5,000 in a single year for the first time ever. That feels amazing. I’ve surpassed both $4,000 and $5,000 this year, and I’ll come pretty close to hitting $6,000. All in one year. I’m going to crush my dividend income goal by a wide margin, which will just add to the celebratory mood around New Year’s excitement. 2014 will go down as my most successful year yet by a number of measures, not the least of which is the success here on the dividend income front. To 2015 and beyond!

I’ll update my Dividend Income page to reflect November’s dividends.

Full Disclosure: Long all aforementioned securities.