71.3 F
New York
Saturday, May 30, 2020

Mid Year Dividend Update: July 2019

Must read

Ghana Takes The World Robofest Championships

An all-girls robotics team from Ghana scored the top spot at the World Robofest Championship held in Southfield, Michigan.

This Day in History: May 25th

On this day in 2019, U.S. Academy at West Point graduated 32 black women—the most in its 216-year history. In 2018, the military academy...

This Day in History: May 25th

Born on This Day in 1949, Here Are 5 Things To Know About Jamaica Kincaid Caribbean American writer,...

Kirk’s #GoVeggies 31-Day Challenge, Day 24: There is Only 1 Disease!

If you thought about it, you could probably name 20 or 30 diseases off the top of your head.  Everything from cancer...
Copper Cotton
Copper Cotton
Copper2Cotton is a money blog following one person's journey to reach $1 million net worth. This blog will not only show the author's progress, but also give financial tips and insight for anyone who wants to be wealthy.

We are half way through 2019 and that means it’s time to check in on the progress you’re making toward your goals. I treat July like my second January. This is the month where I revisit my goals and motivate myself to finish the year strong.

Did I slack off in any areas? If so, this is my opportunity to get back on track. While looking over the goals I made for the year I was pleasantly surprised to learn that I was on track with my reading goal (one book a month). If I keep reading at my current pace I will have read no fewer than 15 books by the end of the year.

Unfortunately, everything is not going as smoothly as the reading goal. I learned I’m nowhere near my goal of doubling what I did in dividends last year ($234). I’m currently on track to make $381.44 by year end. And since I prefer to round that number up from $468 to an even $500 I’m going to need $118.56 of new dividend income to reach my goal. 

Reaching this goal is going to take a lot of discipline and hard work. But the upside is that having done this mid-year deep dive into my finances I’ve given myself six whole months to really focus and make it happen. While $118 seems like small change, it’s not small in the dividend world. Most of my stock purchases only create $4 to $8 of new dividend income. I’ll literally spend the next six months chipping away at the $118 that I need to reach my goal. Below is a snapshot of my YOY (year-over-year) dividend progress:

2017 2018 2019
Jan  $-  $-  $1.11
Feb  $0.88  $13.60  $38.24
Mar  $3.71  $12.96  $51.30
Apr  $-  $-  $1.15
May  $2.17  $26.25  $38.88
Jun  $4.91  $16.94  $60.04
Jul  $-  $-  $-
Aug  $2.58  $43.73  $-
Sep  $7.74  $20.89  $-
Oct  $-  $0.22  $-
Nov  $7.88  $54.30  $-
Dec  $11.83  $45.58  $-
total  $41.70  $234.47  $190.72

 

I’ve made an effort to improve the off-dividend months (Jan, Apr, Jul Oct), which will show up in the second half of the year. Currently, the only stock I have paying during those off months is O (Realty Income). As you can see, I’m still in the humble beginnings of this journey. I’m still working to build a solid foundation for each month and working to pull each month over the $100 mark and I’m highly motivated.

This is the most fun that I’ve ever had with money. It’s so empowering to know that with the click of a button I can choose to not reinvest my dividends and have them sent directly to my checking account where I can use that money for fun or to pay a bill, a small bill for now.

I also want to mention that I also receive passive income via interest from the cash and bonds that I own. The interest income that I receive has always been more than the income that I received from dividends. However, I’ve been working hard to flip that around. By putting all extra money into dividends and even allocating money away from bond purchases into dividend paying stocks. Why? Because unfortunately, interest income is tied to the whims of the Federal Government and Pres. Trump (need I say more). And I’m happy to report that June is the first month that I officially made more in passive dividends than I made in passive interest.

This is big because just yesterday, I received a letter from my online bank (Ally) telling me that the interest rate on my high-yield savings account is being cut by 0.10% and that I shouldn’t move my money because I’m still making 15 times more than I would at a brick-and-mortar bank. This is the same for the I-bonds that I purchase directly from the government. They have cut the interest rate from 2.58% down to 1.98%. These rate cuts are not the worse, but they are still headed in the wrong direction.

As for my dividends, the exact opposite is happening. I recently received notices from a few dividend stocks that I own BAC (Bank of America) and SBUX (Starbucks) that they would be raising their dividend payouts. This was great news, of course, and will certainly help me chip away at the $118.54 I need in additional dividend income.

If you are reading this, I hope you are encouraged to jump in and create your own dividend portfolio. The goal should always be to empower yourself. You should be on a mission to build and collect streams of income that eventually cover all monthly living expenses.

Remember, It’s a fight to build wealth no matter where you are in the process. Everything around us conspires to take money out of our hands. But you must fight the good fight. Continue to save, invest, and grow your net worth even when it seems impossible. Save your pennies (copper) until they become dollars (cotton).

- Advertisement -

More articles

- Advertisement -

Latest article

Kirk’s #GoVeggies 31-Day Challenge, Day 22: Does Meat Cause Cancer?

What is it about meat that makes it so toxic to the human body?  As humans we’re not biologically suited to eat...

This Day in History: May 20th

Born This Day in 1743, Here Are 5 Things To Know About Toussaint L'Ouverture  Toussaint L'Ouverture was the...

This Day in History: May 17th

Racial Segregation in Public Schools Ruled Unconstitutional One of the cornerstone cases of the Civil Rights Movement, Brown...

Kirk’s #GoVeggies 31-Day Challenge, Day 15: Cheese is as Addictive as Drugs!

After years of working with clients, I’ve concluded that cheese is a highly addictive food! When most people come to me for help,...

This Day in History: May 13th

Slavery Was Abolished in Brazil Home to more people of African ancestry than any other country outside of...