Merry Christmas and Happy New Year everyone! Hope everyone had a blast finishing off the year and are ready to set 2018 on fire! What better way to ensure to light this year up, than a record-setting month of Dividend Income? That is my case and point. I am beyond thrilled and excited to see the figures everyone is putting up, showcasing the blood, sweat & tears everyone has endured to this point.
Dividend Income
I received a total of $2,009.22 in dividend income during December of 2017. HOLY SH*T, HOLY SH*T, HOLY SH*T!!!!! Hold on, as I go and change my boxers. WOW. December has luckily been the best month I have ever experienced in my investing journey and the proof is officially deep in the pudding. The 401(k), Health Savings Account (HSA) and all dividends are automatically invested/reinvested and helps take the emotion out of timing & making a decision. Also, to find out why I max out my 401(k) and HSA – please refer to the 3rd part of my tax series, as that describes the magnitude of benefits to increase the amount you can invest due to reduction in taxes. Grainger (GWW), Delta Inc. (DAL) and Kroger (KR) were the new investments made this year, sending checks my way. Outside of those dividends, the remaining growth is through dividend increases and reinvestment, as well as one additional contribution to Pfizer (PFE). This doesn’t include the massive contributions from the 401(k) and HSA, as mentioned.
There were 25 entities paying me in December. I am still in awe and shock, therefore, I apologize in my thoughts being gathered. I shouldn’t be too stunned, given the massive amounts of contributions made and staying the course with my companies I’ve owned above. When I think about my taxable accounts (everything in the first two column/sections), 20 out of 22 companies increased their dividend this year! That is a 91% success rate, and I’ll take it. The two exceptions were DowDuPont (DWDP) and Shell (RDS). DWDP did not increase their dividend primarily due to the acquisition finally closing and cleaning their operation up. Shell, given the oil industry still semi-struggling, did not increase their dividend again.
Similarly, I have split out the taxable and the retirement accounts, as the ” – R” indicates a retirement account dividend (or the furthest column to the right). I separated these two, as I like to know what portion of my dividend income is coming from retirement accounts that I cannot touch until 59.5 (barring any other usage rule I could use). Here, it shows that I received a solid total of $1,244.09 (up from $1,007.53 last year primarily due to 401(k) & HSA, as well as, dividend reinvestment & dividend increases) or 61.9% of my income from retirement accounts and the other 38.1% was from my individual taxable account portfolio. Additionally, this shows from retirement accounts that I’m all ready for my set it and forget it mentality to keep that income going. To see my portfolio – one can go to our portfolio summary page.
dividend income year over year comparison
2016:
2017:
So what are the differences here? Mattel (MAT) fully cut their dividend, hence no payment from them (bastards!). As mentioned earlier, quite a few new faces, with the purchase of Kroger (KR), Grainger (GWW) x 2 and Delta (DAL). Further, the reinvestment and dividend growth is phenomenal, as that’s the fuel to a lot of the fire. Year over year, the dividend income increase was 19.57%! Very excited about the increase over these 12 months. If I keep up the same pace, we are looking at over $2,400 next year!
dividend increases
We all know by now, the power of the dividend growth rate is real! 3 incredible companies increasing their dividend is always welcomed in my house! Additionally, Bert talked about a few of the dividend increases in his Expected December 2017 Increase article. To be honest, all increased their dividend as expected. It was Realty Income’s (O) turn to increase their dividend for the upcoming quarter, AT&T (T) increased their $0.01 per share per quarter and Pfizer (PFE) stayed consistent with a $0.02 increase per share per quarter. In order to achieve this much forward income, one would have to invest $461 at 3.50%! Thanks for the dividend increases!
dividend income conclusion & Summary
The name of the game is to learn and act in the right manner to what you have learned. The plan is to maximize every dollar for investment opportunities and live a balanced life. My hope is that my month of dividend income above shows the community that one can use dividend income as a revenue engine to take back control of your life. Dividend investing, once you learn the right way, becomes easier to do and starts to make quite a bit of sense : )
As I discussed with my updated – normal monthly expenditures at the moment, this dividend income would cover over 204% of my average $984 monthly expense for my house, including utilities. Covering my expenses that are fixed, two times over, is surreal… In addition, my auto loan is finally gone and I am able to deploy the additional capital into new investments that are opportunistic. In similar fashion – 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 allowed me to achieve lofty goals that I set in place for my 2017 year.
As always, excited to read everyone’s December income reports and start to compile our monthly article for everyone. 2017 was a whirlwind year and 2018 will be even wilder. I am exhausted, but need to find each piece of motivation to step forward, not backward. Only one life for us to live, and let’s make it meaningful, challenging and fun at the same time. Excited to read the comments below and thank you, the community, for stopping by; as you are helping me on my journey to financial freedom!
-Lanny
And boom goes the dynamite! $2k during December is fantastic. Great job Lanny. The commitment and consistency to regularly invest is really starting to take shape. 2018 is going to be a killer year for you.
JC –
Bodda BING bodda BOOM!!! Cannot believe it. Just snowballing my way to freedom – could always change the title to the blog, HAHA.
-Lanny
“HOLY SH*T, HOLY SH*T, HOLY SH*T!!!!! Hold on, as I go and change my boxers. WOW.”
Had me laughing really hard and my wife told me to shut up because it was too early and cold outside.
Congratulations! Nice monthly outcome. The percentages of covering expenses that you listed are key.
If you receive $1mm in passive income but you spend $2mm…I’m not a math expert though…
Again, congrats Lanny. Keep steaming ahead.
Mike –
Hahahaha, exactly, I had to a few times as well. It’s funny, I estimated around $1.8K and then it jumped to $2K once mutual funds went final. All about keeping it light and funny here, haha and glad your wife loved/enjoyed it.
And you are right – the math is simple. Need the PI > Expenses and you are good to go. If only every month was like this.. haha. 2018 – time to make it ours Mike!!
-Lanny
Nice! That’s a whole month of expenses for many people. The snowball is really rolling for you for sure. I hit 3 figures for the first time in December. Pretty stoked about it.
CHris –
Nice job! I am going to go over and check out your results. Can’t believe it still, and the comments here have been very motivating to say the least. Let’s stay strong.
-Lanny
That is some crazy passive income you collected in December! Love quarter ending/ year ending months. Always the best for dividend payments. I remember when you crossed the 8k mark and now you have 1/4 of that in a single month. Keep inspiring! Here’s to an awesome 2018!
Daze –
Always the best, always a bang and always surprised in one way or another. Wow… you are right, I remember then too now that you brought it up. I am growing up Daze!! haha. Gosh, time and consistency are so damn powerful!
-Lanny
Congrats on hitting the 2k! I’ve been rooting for you and Bert for the past year, and now I hope to join in on the fun. Thanks for the inspiration!
Money H –
Thank you for following along, we are all about this community and hope you enjoyed it. Will spend time tonight reading your blog too!! We are here to push each other and know that this dream is possible, it’s gosh damn possible.
-Lanny
WOW that is awesome! Nice job breaking that $2k mark.
MrSLM –
THANK YOU!!! What’s even wilder is that we’ve been writing for almost 4 years on this blog, it’s insane!! Keeping it moving.
-Lanny
Bang! That’s totally awesome Lanny! Wow over $2,000 in dividend income, I’ve not gotten to that level yet. Congrats.
Tawcan –
You are def. more spread throughout the year than I am, you will hit it this year, I KNOW IT! Pumped though, thanks again Tawcan for stopping by!
-Lanny
Congrats on the record man! Keep up the great work!
Chris –
Thank you, quite a few of us are setting records! It twas a great month, eh?
-Lanny
Unreal Lanny, WAY TO GO!! $2000 is some serious change and will certainly speed up even bigger numbers in the future. $2,000 at 3.5% is another $70 a year. Not to mention $2000 is like making a whole purchase from hard earned cash which is not so easy to do.
Congrats and wishing you the best in 2018!
ADD
ADD –
Thank you so much, it does feel unreal. I agree, it does feel like making a purchase and if I can keep the growth rate up in 2018 – then those figures will be even bigger. It’s funny – how fast and how much you want today, but also trying to enjoy the ride in the process.
-Lanny
Nice – love these big Decembers. Great job hitting that 2k mark and the growth rate this month is impressive considering the dollar numbers.
Time –
Thank you, big figures and big growth rates – 2018 hopefully can give this month a run for its money, literally, haha.
-Lanny
December is a great month! Congrats on the huge numbers. I had a similarly awesome December,owning a lot of mutual funds/ETFs in retirement accounts. I also try not counting on it until 59.5, but that doesn’t make it any less real income. Love the updates.
Dozer –
Thank you very much. I def. understand the 59.5… but there is the conversion ladder exercise you can go through : ) Always an option!!
-Lanny
Wow, what a record setting month! I’ve got ROK (gotta love that dividend raise this month) and recently bought TGT, but not before the ex-div. I’m seeing lots of divs from my watch list stocks in there too, like DAL and KHC. Keep up the good work- dividend investing is a very rewarding hobby!
Meow –
PUMPED you have ROK, as not many people do! And DAL – under the radar stock – keep an eye on them still : ) Biased? Maybe, haha!
-Lanny
WOW! Cracked the $2000 mark! Congrats Lanny!!! That is just amazing. Keep up th super work! 😀
Dynasty –
Thank you, blood sweat and savings hard at work, haha. Let’s keep it up!
-Lanny
Wow! Now that’s a serious passive income total. I share your excitement. As you mentioned, regular investments and more importantly, staying the course, all created these amazing results. There’s no shortage of reasons to quit the market and wait on the sidelines however, that’s not a way to create an ever increasing passive income stream. As long term investors we know that we’ll be holding stocks through some tough times, hold a few dividend cutters too, but on the whole with a diversified portfolio and staying in the game is the only way to achieve these results. Awesome! Let’s start 2018 on a strong foot.
Hut –
Thank you, we both are doing very well! A diversified portfolio couldn’t be even more important than when you go through one entity that cuts their dividend. It’s almost like a bullet hitting a very strong piece of armor. Does it sting? Sure. Does it shatter your armor or pierce anything? Not a chance. The legs keep moving and the battle continues on! Thanks again DH for coming by.
-Lanny
Congrats Lanny. 2k in dividend is awesome! Keep going strong.
Geek –
Strong is what we are about. You too Geek, pedal to the metal.
-Lanny
All I can add is great job and keep at it!
Charlie –
Your add is appreciated and helps me keep going. 2 days in and I’m already finding ways to bring in extra capital, haha.
-Lanny
@Lanny – congrats. Updates such as these inspire everyone else to continue the course. $2,000 a month in passive income is amazing. Great work, here is looking forward to your December 2018 update 🙂
I will probably post about my December passive income soon too.
– Desi Guy.
Desi –
Thank you – Take it from me – I once received $10 in dividend income, to $100, to $1000 and now… $2000, its real and its legit. It’s actually happening and I am in disbelief a bit, still. Just wow…
-Lanny
Woot nice Lanny! 2k in a month is fantastic. Its inspiring to see. Keep it up.
Cheers
PCI –
Thank you very much for the comment. Wish it was every month, though! Agh, soon, right?!
-Lanny
2k in December alone? What a holiday present for you that is. Fantastic work Lanny.
BHL –
Thank you! It was a very nice present, Santa must have thought I was on his nice list, haha.
-Lanny
Congrats Lanny on reaching the 2k mark!
I also reached an important point in December, getting paie over 1000$ In dividends In a month for the first Time in my Life ! And it came in as a surprise since one of my REITs pays Twice in December (the November div on the 15th, the December div on the 29th), And I Keep forgetting about it.
I don,t have a blog, but I started following you guys around the same Time Last year, amongst a few other bloggers, and that’s What got me into tracking my dividends in a more thorough and organised fashion. Hence, I now know that my 1143$ received in December represents a 49% yoy increase!
It’s guys Like you who got me into the habit of getting super-hyped in front of Excel sheets each and every month! So thanks a million and all my best wishes for 2018 from Québec city, Canada !
Sébastien
Sebastien –
HECK YES!!! Congratulations!! This is awesome and truly am honored you follow us. Love that you track your investments in excel – the only way to go. Spreadsheets are amazing and I would be lost without them. So exciting to update them, no doubt. Best of wishes to you as well, and thank you again for coming by!
-Lanny
“The name of the game is to learn and act in the right manner to what you have learned. ”
I absolutely love this sentence right here.
Congrats Lanny. You produced some great results for December. I love to see your strategy working so well for you. I am excited to see you strive for your goals moving forward. Thanks for sharing.
More Divs –
Wow, this means the world throwing that quote in here. It’s true. We all learn, but fail to practice mos of the time. Time to act if we can!!
I appreciate it and you as well. Consistency. Sticking to what works. Doing more of it : )
-Lanny
Congratulations Lanny. You. Earned. Every. cent.
A stellar year and incredible growth in your dividend income. Obviously your approach is paying off!
I hope Santa brought you some new boxers to go with those fat cheques!
And I hope your 2018 is off to a flying start mate –
Best,
WF30.
WF30 –
Haha, too funny. I appreciate the comment, as always. Saving, investing, rinsing & repeating has worked wonders. Hope both of our 2018s are starting off well, mine has been interesting thus far, haha.
-Lanny
Lanny, Great job. At this rate you are going to be investing in a lot of new boxers! Tom
Tom –
THAT’S THE PLAN BABY!!!!!!!!! Hahaha, if it ultimately means big div figures!! It’ll work well with the new Hanesbrands shareholders out there!
-Lanny
Holy smokes. You got that snowball moving now. Will be awesome to see it grow over the years. Even the Mattel cut didn’t hurt you that much. That is one of the things I want a portfolio where a cut will swallowed up by dividend growth. Keep it up.
Doug –
Thank you and you are right – it is gosh damn powerful, if you ask me. Extremely lucky and it’s funny – Mattel made a little nip in the portfolio and wasn’t felt much. Thank you again, onward to progress!
-Lanny
Awesome Lanny. Congrats on a huge and successful December and what a great way to close out the year! I enjoyed following your progress last year and looking forward to doing the same in 2018. Definitely an inspiration for 2018.
DP –
Appreciate it and likewise in following your journey as well. Time… it’s an unexplained thing I tell ya!
-Lanny
Whoa! 2K! Way to blow up December, Lanny! Love the fairly even distribution from all the payers in the taxable account, too. You’ve got the ball rolling as we head into 2018. With that auto loan a thing of the past, you should be able to ignite the portfolio once again this year. Congrats on all the well-deserved achievements.
Engineering –
Thank you, very much. The taxable account needs some attention : ) Would like to see a triple bagger from one of them soon! AT&T or LMT may be the closest or even PM, we’ll see. In time it will happen, as investments are hard to come by at the moment. Appreciate the motivation, though, ED – every bit helps.
-Lanny
Wow very nice Lanny. You make me want to go and get my div post done now to keep the positive juices flowing in our community. Happy New Year!
DFG
DFG –
Get that div post done son!!! Come on, keep the momentum, energy and positive vibes going. Haha, strike while the iron is hot!
-Lanny
Well done Lanny! That’s one hell of a way to end off 2017!
Lady –
Thank you and I would like to think so too! 2018 is going to be a thrill ride, hopefully to finish on a same high note!
-Lanny
Good job Lanny! That’s an awesome milestone! 2K in dividends is incredible. Your snowball has become the avalanche. Now, that’s a serious business!
DIS –
Very fortunate. It’s freezing with a lot of snow up here, so glad this snowball is accumulating as well : ) Still not enough!!
-Lanny
Boom! Lanny, you are a badass. Well done mate, nice way to close out the year of 2017. Very curious to see how you will be doing in 2018.
CF –
Gracias, thank you for the badass nickname!! Kicking ass and taking names. Collected a few divvies this past week, and…. looking forward to more : )
-Lanny
Woah! Incredible month. Here I thought I was doing great with around $1200. I’ll definitely need to up my game. Your site is definitely an inspiration. Keep it up!
2I –
$1.2K is fricken amazing, wow, def. a good truck load, for sure. Hey, we inspire each other and your game will be upped – just keep doing what you’re doing.
-Lanny
Woww !! Very Impressive, 204% of your average monthly expenses including utilities is magnificent. I love it. Great work there. Good Luck with everything you do up there, Lanny.
Congratulations and happy investing.
TDK.
DK –
Wish it was all taxable and like that every month. More work to be done.
Happy investing to you too and thanks for stopping by!
-Lanny
Wow. Truly amazing Lanny. You know, I used to think only truly mega dividend investors got over $2k, but you’re part of that group too! Haha. Excellent work. All that saving and re-investing has truly gotten your family to a wonderful position. Amazing work. You (and Bert) are an inspiration to everyone here!
Here comes $3k!
Mr DDU
DDU –
What’s funny is I used to think $500 was insane, then $1,000, then $1,500 and so forth. How the heck did I even end up here? I tell you what – it’s just sticking to the plan, saving money and putting it out there to work. Lucky to know how and to be able to do it. It’s this community right here, fueling this engine. Very lucky!
-Lanny
Amazing work Lanny! I just recently broke the £200 dividend mark for the first time and can’t be happier. I can’t wait until the day I receive £2000 and can change my boxers also. Keep up the amazing work!
Alex –
Congratulations, what a milestone – cherish it. That’s one of the best things of being a dividend investor – the milestones along the way. Appreciate the comment, you’ll get to $2K and hopefully I can reach new heights as well!
-Lanny
Amazing work Lanny! I just recently broke the £200 dividend mark for the first time and can’t be happier. I can’t wait until the day I receive £2000 and can can change my boxers also. Keep up the amazing work!
P.S. – Make sure to buy those boxers in bulk!!
Hi Lanny,
I guess you are tired of those comments already but I had to stop by and congratulate you with a MASSIVE month!
I am happy to have received dividend raises from O and T as well. I am in another weight category, though 😀
Keep it up!
-BI
BI –
NEVER tired of the love fromt he community!
Heck yah – div raises are some of the most exciting days to go through as an investor. Cherish them for sure!
-Lanny
Lanny, WOW! Over $2.000! Retired already or something? Haha. Glad to see you’re doing so well. Keep it up.
– SD
Congrats Lanny on a double decker last month 🙂 Dec is great for all investors. But, this is life changing amount that pushes you closer to FI. Keep it going.
Congratulations! Over $2,000 is amazing work. Will be keeping an eye on how you progress through out this year.
Wow wow wow over $2k in a single month my mind is blown. Congratulations keep up the good work.
That’s awesome. Great Stuff
Thanks for sharing