Crushing $6,000 in Projected Dividend Income

I am very glad I have set a realistic, attainable goal this year and am churning my way to it.  I remember last year, I was sprinting past my 2014 goals early and often, but this year definitely is different.  This year is harder, this year is more strategic, this year takes much more effort than usual.  My goal by the end of the year is to have a projected $6,750 in forward-looking dividend income, and well – this month has allowed me to reach closer to the goal, but to also cross a milestone along the path.  This month events and activities have allowed me to Crush through $6,000 in projected dividend income!crushing it

Crushing $6,000 in Projected Dividend Income

It seemed like it was 10 years ago when I officially crushed the $5,000 in projected dividend income.  It has been a battle for the first 7-8 months this year in 2015 to reach the next milestone of $6,000 in dividend income.  When you think about it – Adding $1,000+ in dividend income takes, at 3% yield, $33,333.33 to be invested, not considering dividend growth.  I went stale at one point during the year and was having buyer’s anxiety, but luckily and lately – Mr. Market has been taking a downturn for us.  I have been able to continuously have strong savings month, as evidenced by my 3 month savings article, from all of the frugality rules I live by, as I strive to save 60% of my income each month

I will have to admit – finishing the year with a projected income of $6,750 was going to take a full 12 rounds (months.. haha) in the ring this year and my body is taking a few hits along the way – but these hits or capital contributions are making an impact/making my portfolio stronger.  When I began establishing my goals, I could have just been happy with $5,750 this year or even just hitting $6,000 or essentially where I’m writing this article, right here, right now.  But no, that would have been too easy and wouldn’t have been worth fighting for.  I do get emotional occasionally, and do like to push myself to the edge or limit where I can – essentially running on thin ice the majority of the year with my cash reserves – just to see my tolerance levels.

How I Crossed Crushed $6,000 in Projected Income

Well, I started the year off making a few purchases into DOW and TUP to begin the forward income journey.  I then had to make a decision to keep holding onto Lorillard stock and let the merger close to transfer my ownership into Reynolds stock, but instead made a decision to sell my LO shares and move the funds into Phillip Morris (PM), expanding my forward income with the proceeds.  I kept making purchases, such as buying one of the foundation stocks that we have talked about in the past for dividend income investors and placed capital into Johnson & Johnson (JNJ).  The journey to crushing $6,000 didn’t end there, as this summer I definitely felt the power of the 401K match and the benefits it can provide a dividend income investor (receiving the match at the end of June).

Then August hit… after record breaking months of dividend income and purchases throughout the 7 months of 2015, I made 2 purchases.  First purchase that really put me over was with Emerson Electric, thanks Bert for the recommendation.  That already topped me over the $6,000 mark and then came the 2nd purchase of Norfolk Southern.  This actually allowed me to cross $6,127.39 in forward-looking income for my dividend stock portfolio.  I am stunned, shocked and surprised.  Sweat and tears for some reason to get over this hurdle.  It took only 3 months to go from $4K to $5K, but for some reason to get over $6K just was harder, it’s odd.  Here is the capture from my excel tracking:

Screen Shot 2015-08-16 at 8.12.03 PM

Conclusion

What does that even mean?  It’s insane.  $6,127.39 means $510.62 per month on average in dividend income going forward, as of today.  This covers my mortgage payment before property tax and insurance.  OR this pays for more than all of my utilities, my auto loan and auto insurance.  OR this pays for an adventure for a weekend if I wanted.  OR… well you get the picture.  This is going to be able to buy freedom and time and gosh dammit I want more of that.  I am still $622.61 away from my goal… and well – since I leap frogged into $6.1K territory, I don’t see anything stopping me but… ME.  So I need to get out of my way and kill/crush the 2015 goal of $6,750 next.  LETS GO!

Thoughts on this milestone?  Are you reaching for and potentially hitting one of your own?  Are you surprised by your own actions?  Would love to hear where you are all at!  Thank you again.

-Lanny

Facebooktwitterredditpinterestlinkedinmail

25 thoughts on “Crushing $6,000 in Projected Dividend Income

  1. Lanny,

    Big congrats on crossing over $6k in projected dividend income. That’s more than $500/month, bud, which covers a good chunk of expenses for us frugal folk.

    Keep it up! Bigger and better things are still yet ahead. 🙂

    Cheers.

    • Mantra,

      Thank YOU so much for coming by! Appreciate it, truly. $6K is wild; but man – long ways to go for my goals and my journey. You’re doing great over there, more than great – the income you are generating from doing what you love is phenomenal. Please keep inspiring and keep those purchases coming, you are on a tear.

      -Lanny

  2. That’s some pretty serious money there. As you said enough to cover some major bills and then some. Just think how the following years will be with those added dividends compounding as you reinvest it. I haven’t set any goals but if I was to hit the $300/ month average by the end of the year I’ll be pretty happy with that. Keep it up.

    • Captain Dividend,

      Thank you very much for coming by! It feels amazing and whoa $300/month is incredible as well and you’ll get there, I know it. If I could get close to $600… by the end, phew would be incredible. Thanks again CD, making moves for the both of us.

      -Lanny

  3. Nice job Lanny! What I see when I hear you are making $500 a month is the potential to buy more stock each month and increase even more! That snowball effect is so addicting. I’m sitting just under $100 a month but you have to start somewhere! Inspiring post.
    -Adam

    • Adam,

      Thank you for coming by. I agree – the dividend income is potential to grab more shares which makes that number increase even more – i love the snowball that has been officially built, not going to lie about that! $100 is great and I guarantee in no time flat, you’ll be pushing $200 soon. Keep it up.

      -Lanny

  4. Nice job in reaching your goal Lanny. I’m happy for you bud. Lots of hard work and delayed gratifications to sock away all that cash. I’m on this path with you so I totally know what it takes to build it up. We can’t stop and we won’t stop. Let’s keep hustling it up bud. Cheers my friend.

    • Hustler,

      Thank you man, I really appreciate it. Hard work and delayed gratification — the blood sweat and tears. I know you’re on this path with me and it’s great, it’s great that this community is on a similar path together. Can’t Stop, Won’t stop – I know you know the song, phrase and everything about it.

      -Lanny

  5. Fantastic progress, Lanny! Congrats on crushing the $6K in projected div income…keep up the great work and Im sure you will meet your goal for the year at this rate.

    I bet you are already setting your sights onto your next years target.

    cheers
    R2R

    • R2R,

      Phew – thank you – it’s been a journey and meeting my goal will be a challenge, with over $600 to go… going to be a climb, but I am ready. How are you doing? Ready to keep on this journey? LETS DO THIS!

      -Lanny

  6. Ciao Lanny,

    BLOODY HELL! That’s quite an impressive mark there, very good job! Nothing much to say apart from the fact that I am happy for you, and of course I hope that you keep sharing your ideas/strategies with us! Next year target? Have you thought about it?

    Ciaociao
    Stal

    • Stalflare,

      Bloody hell is right – it’s took some grit, that’s for sure and I wouldn’t have wanted that any other way. I will keep sharing – next year’s target is yet to be disclosed, but I do have an idea number in my head… something that gets close to the $700+/month mark). We’ll see how this year finishes though. I actually have the next 3 year goals planned out interesting enough. How are you doing?

      Ciao.

      -Lanny

  7. Hey Lanny!

    Wow, huge congrats!! That’s a super impressive milestone, and you’re at a point where you can already cover a very substantial amount of your expenses. That’s one of the best feelings in the world; knowing that you have a certain expenses covered, for life.

    Iny case, I’m targeting a forward divided of £450 by the end of the year, which should be enough to cover all my electric and gas bills…FOR LIFE. I mean, if somebody had told me that I’d basically get free bills forever by saving some of of my money, I would have thought them crazy.

    Keep up the amazing work mate, and I’m looking forward to read that, not only have you met your $6,750, but you have also crushed it!

    DL

    • DL,

      WHOA $450 covering bills for life. We should take a second ant think about that… that’s amazing/incredible. Excited for you to cruise over that for sure.

      I hope to get to my goal, I made it hard for a reason and I’ll tell you that much – it’s hard as hell. Let’s keep on DL!

      -Lanny

    • Gremlin,

      No worries in comparing – $100/month is a ton of fun to hit and definitely gives you something to celebrate on. I was once at $100/month and you will be higher than I am now, no doubt in my mind. And Gremlin – Always crushin it.

      -Lanny

  8. Lanny,

    Great work! I am at just about the same place that you are for forward dividends. Sure feels great to be making some progress. That $6,750 next year is getting to be a large chunk of your snowball for future purchases!

    DGI Novice

    • DGI,

      That’s awesome we are around the same place; the best part about it, is knowing that you have a little investment always picking up shares and more income for you with dividend reinvestment, even if you can’t make a contribution. It’s…relieving in a way. Nice work!

      -Lanny

  9. Well done. It has been quite a journey for me to break the $10K mark in dividends and like you wrote, it takes some savings to make it happen.

    I am technically forecasting $10,500 this year and I made a recent change to lower my mortgage payment and invest the difference religiously as I have mortgage interest rate of 2.65% for the next 5 years.

    • DivEarner,

      Thank you for coming by. And $10K… wow… that is incredible. 5 digits… just insane. It takes savings, dedication and commitment, hands down.

      2.65%… incredible as well. Mine is at 4.375% on a 30 year schedule; making one rounded up/more than an extra payment every quarter or 4.47 extra payments per year is what it calculates to. It looks like if I keep this up, should knock off 10-12 years off the life. I tried to refinance but closing costs wouldn’t make it worthwhile for me. Any suggestions?

      -Lanny

Leave a Reply

Your email address will not be published. Required fields are marked *