Dividend Report November 2016 – How much passive income did you earn ?

Dividend income, it’s amazing!

Seriously, as I progress in my financial independence journey and keep on executing on my financial strategy, I become increasingly convinced that dividend income is what keeps me on course. Monthly savings differ and stock prices love irrational ups and downs, but dividends from my investments in stocks or ETF’s are something you can count on – month after month. They’ve kept my eye on the ball in the past two years after I lost 30% of my net worth after a divorce. At least now I am in control of my own destiny and financial freedom.

Everyone that plays or watches sports knows that keeping your eye on the ball is more important than taking into account what the other players are doing. It’s how you win the game, be that football, basketball, tennis or any other ball sports. And winning the financial independence game is what it’s all about.

Why do I like the boring and recurring nature of dividend income? Well, there’s two very good reasons.

First, every time a dividend payment hits my bank account I’m filled with joy that I made money without having to lift a finger. While I was sleeping, going out with friends, horse riding or working at my company the dividend comes in month after month. Basically different companies all around the world working to make profits and then forward me a piece of their profits. It’s a great recurring stimulus.

Second, I can take advantage of the double compounding effect. On the one hand I get to see how these dividends increase year after year, semi-automatically almost, while on the other hand I get to put fresh income immediately to work in the stock market again. As a result, I accelerate my passive income forward faster and faster as I progress.

Once that passive income surpasses my monthly expenses I’m effectively financially free and I could potentially retire early. So let’s see where I landed in November with regards to free-of-work income!

 

Dividends received in November 2016

All dividends are listed in Dollars as my investment portfolio is invested in US Stocks and ETF’s mainly. The exchange rate of the Dollar towards the Euro has helped me again. The dollar gained in strength and since the time I transferred my euros in dollar, I gained a currency gain of around 20%.

I invested in dollars at the 1.4 , 1.3 and 1.2 Euro mark.

 

November was another solid month of dividend income with a total of 277 Dollar for the month. This exceeds my monthly goal of 250$ per month that I set forward as a yearly objective.

October was a record month with a total of 969 dollar for the month. Many stocks and ETF’s pay dividend quarterly and this comes on top of my monthly paying stocks or ETF’s.

I’m really pleased with another solid 250+ figure month in the books. My monthly expenses for food average around 250 dollar a month. I guess I’ll never be hungry again? Great!

 

Growth

Compared to last year, November’s income grew by a nice increase of 35.07%. October dividend income growth was 38% . This growth is very solid considering its overall my strongest quarter.

Most of that increase is the result of fresh money received from dividends re-investing into stocks and ETF’s, but a portion comes also from paying myself first and keep on investing.) All the companies I invest in, work around the clock to pay out up my passive income and that gives me great pleasure.

 

Going forward

We are entering now the December month. I still have cash left from dividends which I can re-invest if I notice opportunities. Every month I review new investment. I have exceeded my 2015 yearly target and I will report out in January how much my total yearly dividend income has been. I am on the right track, that’s for sure!

So I’ll just do the rational thing – even though some might consider it insane because it’s very repetitive: paying yourself first in the beginning of the month from your salary and investing those savings for the future. Money has the awesome property to turn into more money if you put it to good use, so you can bet on it that I aim to do just that.

Of course, the grass always looks greener on the other side of the fence, but it’s no use to complain about that. Others might be doing better, but who cares? Remember, keep your eye on the ball and not the other players!

How was your month in terms of dividends? Are you still the (stupid) European or Belgian who puts all his money on a bank savings account? It is your choice but you get poorer every day…or do the following exercise for yourself. Calculate how much savings money you need on a 0,1% interest rate account to make in one year what I made in the November month of 2016 alone.

Good luck with your personal finance strategy!