Dividend Income Summary - December 2014

by: Dividend Diplomats

Hello everyone! It's the final month of 2014 and it was a great one at that! I have finally received my last dividend payment and am able to conclude on the amount of income my portfolio was able to bring for the month. The journey is a long one and being able to reflect on the capstone 12th month of the year and to see what leaps/bounds one was able to make is a humbling experience. I know we all love to read these posts from the writers in the community, so let's get to the December Dividend Income Summary!

Dividend Income

This month, I received a total of $952.86! My hands are almost shaking as I type this… I cannot believe I received that much in distributions back to me this month alone. To put this in perspective, the total I received last year is $1,872; this single month of December 2014 gave me a dividend income total that was over 50% last year's FULL amount! Here is the breakdown and comparison of the full year:

$952.86 by celebrating Christmas, taking two weeks off and drinking plenty of coffee. This goes to show that saving 60% of your income to buy dividend paying and increasing stocks definitely pays off! December and other quarter ends are usually the bigger months as the more common month a company pays its dividend is during this time. I have crossed the $500 mark now - 4 different times, on specifically each quarter end; with also crossing $100 on 7 straight months! Phew. $953 is enough to cover my mortgage and majority of my utility bills, as I discussed in my fixed expenses post way back in the day.

Comparison

Now, I look back at 2013 December's total. The total back then was $415. Earning $953 this month equates to an 129.6% increase! I will rephrase that, this month of December 2014 I earned 129.6% more money from dividend income stocks than I did last year. Back in my September 2014 article, I quoted this "I am expecting my December quarter end in dividend income to be somewhere between $650-$750." - aka - I crushed this expectation set 3 months ago! That is probably part of the reason why I am crushing over $5,000 in projected income and have recently discovered I had hit one my 2015 dividend income goals I had set by re-visiting and analyzing the dividend growth rate's impact on your portfolio. I was able to exceed all of these expectations and prior year's totals simply from saving, and consistently investing - along with dividend income increases. The power of reinvestment is real and this is another example to showcase that! September 2014 I received $610, June was $754 and March stood at $615. All 4 of these quarter ends combined = $2,932 or an average of $733! Quarter ends are always exciting and now we all see why!

Dividend Income Increases

This month had a few dividend increase announcements. (1) As we described in our December re-cap and expected January dividend income increases, AT&T (NYSE:T) had a 2.2% increase for their shareholders, which will add more income to my portfolio going forward. (2) Pfizer (NYSE:PFE) had a nice 7.7% increase (As MyDividendPipeline wrote about) this month as well, not a bad bump. I won't go into detail with my retirement ETFs or Mutual funds, as they also had nice dividend growth rates in December, but their increases are quite variable in nature and ultimately depends on the stocks held within each of the fund. The two stocks mentioned above, however, added $10.65 to my dividend income going forward! I recently wrote about the power of the dividend growth rate and the impact on your portfolio - and each dividend increase definitely adds and reduces your time required for financial freedom. I recently discovered that assessing the growth rate for each individual stock I own and multiplying that rate X the weighted average percentage of income that stock provides and then summing these - will/can show you your expected dividend growth rate for the next year, as an expectation. I recommend for you to check it out and assess it on your own portfolio!

Conclusion and Summary

Wow… I cannot believe close to $1K came in through the door this month, and I am extremely happy and lucky to receive a record setting month of Dividend Income. Bert has a few surprises for you as well, as he received a few shocking payments that I am excited for everyone to read about, including myself. My year-to-date total of dividend income now finishes at…drumroll…$4,011.92! This is an average of $334 per month received this year for simply researching, improving my financial literacy and making fundamental decisions into high quality dividend paying stocks. This is an increase of 114% when compared to last year - think I can do that again? Joking, that would be hard as I'd have to earn over $8K in income and, well, I am approximately $3K away from that projected amount? As with anything - this train is running with some speed now, as dividend reinvestment and growth are going to fuel this income even further. With a projected $5,015 in dividend income as of today = $418 a month, which is already an increase of $84/month going into 2015, we shall see if that holds at least that much of an increase (I am going to expect more though!). With that being said, I am pleased with my year-to-date summary and the results of all the hard work and consistency from investing. I wish to thank Bert, the dividend community and all readers for the motivation to keep this freedom goal going - without that I would not have been able to do what was accomplished this year.

With that being said - How did your last month finish off? Satisfied? Did you hit targets you set for yourself? Are you ready for 2015? As always - thanks for stopping by and I am excited to hear from everyone!