Saturday, August 15, 2015

Dividend Income Updates - Bridging The Cashflow Dream

The time has come again when we as dividend income investors enjoy the fruit of our labor. This has become one of my favorite section as I am able to enjoy the dividend income received year after year at this very same time as the businesses I am vested in flourish. When they do, these companies return part of their earnings to shareholders in the form of dividends, a cycle that now goes on almost in auto-pilot mode and it keeps on piling up until you are no longer vested in the company or when the latter goes kaput.




The reason why I am doing these regular updates is to account for my own responsibility of what I had set to do from the beginning. The other intention is to provide for some kind of inspiration for any new investors that are having second thoughts on investing and whether these sorts of passive income is a tangible idea or not. All I can say is they have rewarded a lot more to me than anything I can ask for in my investing journey and the best part of it is they keep on getting better and better as we look back on the seed we've planted all these years in the past. Since we've just witnessed and celebrated the national jubilee celebration, I trust that most people can relate to the same.

Dividend income continues to play a big part in my overall strategy to move on from a corporate role into something I would like to embark on. It provides a very predictable cashflow that I can use them almost for any expenses I incurred such as utilities, phone bills, milk powder, etc. When these pots are huge enough that they are able to produce constant income that meets my defined criteria of the projected expenses, then I'll most probably be quite done and over with the money concept.

As the reporting season began to wind down, I've tabulated across the amount of dividend income I will be receiving this month. Some of them will span across and be paid early next month but that doesn't really matter too much to me. Without further ado, here are the breakdown:


CountersDividends (S$)
China Merchant Pacific1575.00
Vicom700.00
Kingsmen360.00
Stamford Land300.00
MTQ140.00
Total3,075.00


That's $3,075 of dividend income I will be receiving just about passively, without having to actively work for it. It could have been a lot more if not for the recent divestment of the Reits I owned previously but those capital are sitting nicely in my warchest pot, and they will be utilized at some point in time purposefully.

One of my goals for 2015 is to receive a dividend income of $18,000 for the year. Including the amount I've received previously during the year, the total amount of dividend income received is so far at $8,678 or 48% of the overall goal. It looks like I will not be making the goal successfully for this year but I reckon it'll come closer. The month of Nov and Dec will be a big one for me now.

Thanks for reading.

How was your month been for you? Does dividend income provides a buffer in this market volatility?



16 comments:

  1. Hi B, at 3,075, that's probably interim, what's your expected annual dividend collection?

    ReplyDelete
    Replies
    1. Hi Trademarksg

      I'm expecting the annual dividend for now to be at around north of $10k, excluding the cash portion I have at hand for the warchest.

      Delete
  2. The large fruits of Dividend Tree will take time to grow. With proper money management; it will grow into sustainable Dividend Tree which can withstand future market cycles.

    ReplyDelete
    Replies
    1. Hi Uncle CW

      The fruits seem to be getting smaller and smaller, maybe the tree is not fluorishing ;)

      Delete
  3. Hi B, August is the month where most companies announce their 2Q2015 results and declare their dividends if any. I am also waiting to collect dividends this month. :)

    Most stocks and REITs I hold have dropped in price recently due to the series of saga going on.

    I aspire to be like you, collecting dividends and building on passive income.

    ReplyDelete
    Replies
    1. Hi HC

      Like you, I am looking closely at those reits which offer good dividend yield in the midst of this turbulent market. Hopefully, the entry price would present sufficient margin of safety for holding long term.

      Delete
  4. Mine only estimated about 1.3 k this year. You are doing well. keep it up!

    ReplyDelete
    Replies
    1. Hi Foodie

      Many thanks for your compliment.

      You keep it up too over there :)

      Delete
  5. Good motivation for the Dividend Investor, good job and keep it up dude.

    Cheers
    Daniel

    www.passivedividendinvestor.com

    ReplyDelete
    Replies
    1. Hi Daniel

      Thanks for your kind words.

      You keep it up too over there.

      Delete
  6. Hi B, its nice of you sharing yr experience for div income investment. Last yr, I have 10K odd cash div from a wide array of counters acquired over a period of time & thru IPOs. I have as not much time to monitor them since.
    To date {2015}, my estimated cash div income is just over 6K after some fine tuning to my array of counters to include more REITs.
    The CPF portion of div last yr is approx 4.7k per annum from some long acquired stable securities under CPFIS scheme. I foresee this part of div shall remain unchange in 2015 & thereafter as I have since stop using my CPF to buy shares.
    It still fall short of my "investment for dividend income" target.

    ReplyDelete
  7. This comment has been removed by the author.

    ReplyDelete
  8. Hi B, its nice of you sharing yr experience for div income investment. Last yr, I have 10K odd cash div from a wide array of counters acquired over a period of time & thru IPOs. I have not much time to monitor them since.
    To date {2015}, my estimated cash div income is just over 6K after some fine tuning to my array of counters to include more REITs.
    The CPF portion of div last yr is approx 4.7k per annum from some long acquired stable securities under CPFIS scheme. I foresee this part of div shall remain unchange in 2015 & thereafter as I have since stop using my CPF to buy shares.
    It still fall short of my "investment for dividend income" target.

    ReplyDelete
    Replies
    1. Hi Ronnie

      Thanks for sharing your passive income generator.

      You seem to have a very good plan there to utilize the CPFIS portion as well as the dividend income, probably used for reinvestment. I think you will eventually reach your target for dividend income, as year after year it only gets better, presumably.

      Delete
  9. Indeed, August is the month where many companies pay out dividend. This is the month when I will receive 2nd highest passive income (highest is in May).

    ReplyDelete
    Replies
    1. Hi Sanye

      Thanks for leaving your comments.

      I guess we all still needs to learn from you. You've been around, seen around, feel around. I think the same goes for most people where both May and Aug are their bountiful months :D

      Delete

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