Entering text into the input field will update the search result below

Paying My Bills With Dividends - 2017 Q2 Update

Jul. 04, 2017 3:39 PM ETDIS, DVY, INTC, JNJ, NKE, O, PEP, TGT, VZ33 Comments
DJ Habig profile picture
DJ Habig


  • My goal of full income replacement is decades away.
  • Turning bills into dividend income goals provides intermediate goals that are easier to visualize.
  • By reaching a couple of these goals already, I feel more motivated and more accomplished as an investor.

As the second quarter of 2017 has come to an end, I wanted to provide an update on my progress as I build my income stream to one day pay all of my bills from dividends. But for now, I will continue to participate in Dividend Reinvestment Programs (DRIPs). My last article, Paying My Bills With Dividends - 2017 Q1 Update, will be used to check my projections and make any adjustments going forward. I also thought it would be helpful to compare my portfolio to iShares Select Dividend ETF (NYSEARCA:DVY) and detail changes that will affect income during the current quarter.

My 2017 Q2 dividend income totaled $169.10 compared to the 2017 Q1 income of $163.49. This was a gain of $5.61, or 3.4%. This is despite the fact that Disney's (DIS) $10.37 of income from Q1 dropped to zero for Q2. It's hard to complain about DIS and its growing dividend, but quarterly payments would make things so much easier. Anyway, the quarterly increase is fueled in small part by reinvested dividends generating their own tiny dividends. Another contributing factor was dividend raises from Verizon (VZ), Pepsi (PEP), Intel (INTC), and Johnson & Johnson (JNJ). The main source of increased income came from new positions in Nike (NKE) and Realty Income (O), and additional capital invested in my Target (TGT) position.

In order to compare my income level to the income DVY would have generated, I simulated converting my entire portfolio to DVY on April 3rd, 2017. This ensured I would've received the dividend in June. For the most accurate comparison, I did factor in transaction fees that I would have incurred to follow through with this. The dividend payment I would have received from DVY totaled $171.06. This total did beat my income by about 2 dollars, but it's certainly close enough that I feel justified

This article was written by

DJ Habig profile picture
Just a scientist who appreciates passive income and the power of compounding.

Analyst’s Disclosure: I am/we are long DIS, TGT, VZ, O, INTC, PEP, NKE, JNJ. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.