This is what dividend investing is all about! Investing in dividend stocks allows YOU to earn dividend income, the best passive income stream! Bias, you better believe it.
Time to dive into Lanny’s January 2024 dividend income results! Were records set? Love the end of the year Dividend Tally, as the retirement account is PUMPED UP. Almost to financial freedom? One day and one month at a time!
Dividend Income
Dividend Income is the fruit from the labor of investing your money in the stock market. Further, Dividend Income is my primary vehicle on the road to Financial Freedom, which you can see through my Dividend Portfolio.
How do I research & screen for dividend stocks prior to making a purchase? I use our Dividend Diplomat Stock Screener and trade on Ally’s investment platform (one of our Financial Freedom Products) and on SoFi.
Related: Dividend Diplomat Stock Screener
Related: Financial Freedom Products
Related: 3 Financial Freedom Products
I also automatically invest and max out, pre-tax, my 401k through work and my Health Savings Account. This allows me to save a TON of money on taxes (aka thousands), which allows me to invest even more. In addition, all dividends I receive are automatically being reinvested back into the company that paid the dividend, aka Dividend Reinvestment Plan or DRIP for short. This takes the emotion out of timing the market and BUILDS onto my passive income stream!
Related: Tax Strategy – Part 3 to Reduce Taxes & Increase Investment.
Related: The Power of Dividend Reinvesting
Related: Why I Don’t Time or Predict The Market
Growing your dividend income takes time and consistency. Investing as often, and early, as you can allows compound interest (aka dividends) to work it’s magic. I have gone from making $2.70 in a single month in dividend income to well over … $10,000+ in a single month. My dividend income record was set in December of 2021. Was it broken this month?! The power of compounding and dividend reinvestment is a wonderful component to the portfolio. Each and every month, whether big or small, I continue to report the passive income that dividend investing provides me. Why?
*Not pictured is my wife’s dividend income above*
I want to show YOU that dividend investing makes it possible to achieve financial freedom and/or financial independence. We all start somewhere, but consistently investing, compounding (reinvesting) dividends and keeping it simple, allows you to be in a significantly better position than most. Further, if I can grow this portfolio and income stream, YOU can too.
dividend income – January 2024
Now, on to the numbers… In January, we (my wife and I) received a dividend income total of $1,441.30. Always nice to start off with a 4 digit dividend income month. The first month of the year is in the books and we’ll have to see what caused this amount of passive income and the change from prior year.
The amount and number of stocks listed below show you what it means to buy and hold for the long term. Most of the positions I have owned for YEARS, letting dividend growth and reinvestment do it’s thing. This is what dividend investing for financial freedom is all about. The passive income stream is growing at a RAPID pace.
2023 was up 24%. 2024 is one month down and the S&P 500 is already up 6%, setting all-time highs almost daily now.
The fed has now paused for 4 months, as they let data and the interest rate hikes they’ve done over the last 2 years really sink in. Expectations are rate cuts next year. Will it be 2? Will it be 3? Who knows, I turn off the noise and keep investing.
Here is the breakdown of dividend income for the month, between taxable and retirement (far right column, under “Retirement”) accounts. In addition, “W” means my wife’s account:
Phillip Morris (PM) brought in a big bag here for me, over $160! This reinvested and grabbed almost 2 full shares, adding more passive income.
What is wild, I had 4 other stocks pay me over $100. Broadstone Net Lease (BNL) paid a nice $106 dividend, as well as National Grid (NGG). I love the utility players!
Further, let’s not forget about energy. Total Energies (TTE) paid a handsome dividend, not to mention a dividend increase already announced this year.
Lastly, one of the BIG Canadian Banks sent the most my way. OVER a $200 dividend payment from Canadian Imperial (CM). If you’re a dividend investor, more than likely you own a Canadian Bank… or two!
I also split out my retirement accounts in the far right column and the taxable account dividends are in the left two columns. The retirement accounts are composed of H.S.A. investments, ROTH and Traditional IRAs, as well as our work 401(k) accounts. In total, the retirement accounts brought in a total dividend income amount of $247.48 or 17% of the dividend income total,. This still left over $1,100+ in the taxable account. Hard to get these non-quarter end months to $2,000 I tell ya. Next year, maybe?
Related: Maximizing your Roth for 10 Years… Then Set It & Forget It!
Dividend Income Year over Year Comparison
2023: 
Our dividend income is up… $176.62, a 14% increase from last year. That beat inflation, right? I believe so, I think inflation was 3.4% for the year.
To start, Paramount (PARA) had the big dividend cut, that was a drag on the growth, year over year.
Next, MDU (MDU) spunoff Knife River Corp (KNF) and that right sized, aka decreased, their dividend, as well.
It was nice to see Armanino Foods (AMNF), Total (TTE) and Canadian Imperial (CM) all have sizable dividend increases, year over year. That’s all dividend reinvestment and dividend growth right there.
Main Street (MAIN) is really the only new stock in the portfolio versus last year. Would like their stock price to drop, so I can buy more!
In total, if we keep this growth rate up – we are talking OVER $1,600 in forward income in 2025 for January? Which may put me 2 years away from $2,000, dangit!
Dividend Increases
5 dividend increases to jumpstart 2024 baby! I’ll take it!
The best dividend increase below? Archer Daniels Midland (ADM), without question. An accounting scandal BUT STILL increasing the dividend over 11%. Wild!
I love my Elevance Health (ELV), as they continue to churn and put out dividend increase results. Double digit growth rates every time!
Related: The Impact of The Dividend Growth Rate!
In total, dividend increases created $74.98 in additional passive dividend income. I would need to invest $2,142 at a 3.50% dividend yield in order to add that income. Thank you for the increases, as I didn’t have to come up with the capital to create that form of income!
Dividend Income Conclusion & Summary
The name of the game is to apply what you learn through financial education. The next steps are to maximize every dollar for investment opportunities and live life on your own terms. Therefore, my plan is to demonstrate that dividend income can be a revenue engine. A revenue engine that allows you to take back control of your life. A revenue engine to help you reach financial freedom. Dividend investing, once you learn the right way, becomes easier and starts to immensely make sense!
Excited for the future, no doubt. Furthermore, all of the investing from last year and moves this year, shows that my aim to save 60% of my income, and making every dollar count, has provided the dividend growth.
If you are just starting out on your investment journey and you aren’t sure to start – please see the articles mentioned throughout this post. We are trying to bring you financial education and help you reach your financial goals.
Further, if you are interested in our dividend stocks to buy, dividend news, stock purchases, etc., please see our YouTube video (below), subscribe to our channel and check us out! Accordingly, we’ll help break down further investing topics not only on this blog, but by showing you through video!
As always, thank you for stopping by, leave your comments and questions below. Good luck and happy investing everyone!