April 2016 Passive Dividend Income

Another month has come and gone. Today is the first day of May, and on this past Friday, I got my last dividend notification for the month of April. I’m now about nine months into the dividend growth investing journey. My goal is to build up passive income over time so that I can enjoy a reasonable retirement in a couple of decades. I believe that long-standing dividend payers who have solid cash flows should be reasonable investments for the long term.

I added a couple of small positions over the past month, but neither of these has paid out a dividend yet. I started pooling my dividends in my Loyal3 account in January, and I reached $10 early in April. I then immediately put that $10 to work in a very small starting position in Unilever PLC. My hope is that my growing stream of dividends will enable me to add to this small start each quarter to start with. As my core positions add more in dividend payments, I plan to increase the frequency of these purchases in UL.

I also cashed out some more funds from Swagbucks and started with a $25 position in Starbucks (SBUX). My hope is to alternate Swagbucks payments and build up some smaller positions. Starbucks does not pay a huge dividend at this point, but the company has been increasing its payout rapidly over the past few years. Additionally, the company is still in the growth phase, so I’m hoping that my eventual yield on cost is much higher than my current ~1.4 percent.

I received three dividend payments during the month of April, so without further ado, here they are:

Coca-Cola (KO):                         $2.95

Wal-Mart (WMT):                       $2.48

Bank of Nova Scotia (BNS):     $3.47

Total dividend payments for March:   $8.90

Dividend income for 2016:                      $33.28

My payment from BNS was subject to a 15 percent withholding tax, so only $2.95 went into my DRIP. This purchased another 0.057 shares of BNS, and it will add about $0.12 to my annual dividend income, although this will vary because of foreign exchange rates. I put the other dividends toward the aforementioned  purchase of Unilever. My current forward dividend income for the next 12 months should be right around $131.67 (although this is possibly a slight bit off because of the BNS forex issue). This way more than the grand total of $0 that I expected in yearly dividends at this same time last year. Earning dividends is truly earning money in pajamas. I do no more work after earning the capital. Then my capital goes to work for me.

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Disclaimer: I am not a licensed financial professional. Please use the information on this site for educational/entertainment purposes only. Be sure to check with a financial professional before purchasing equities.

Disclaimer 2: I may receive compensation if you decide to sign up for any of my affiliate links. This post mentions Swagbucks. I usually get $25 worth of PayPal cash each month from this site, and I use it to buy more stocks that then earn me more dividends that can then go and buy more stocks that then pay more dividends…and so forth. Should you choose to sign up, I thank you for your support.

14 thoughts on “April 2016 Passive Dividend Income”

    1. That’s the goal. I figure it might take awhile, but if I never get started, it will not be possible at all.

  1. Get dividends and use them to buy more future dividends. That’s the name of the game and the long term growth will follow! April is always a slow month but it’s good to see a number above 0 anytime!

    1. It’s absolutely great to see a number above zero. I should have no more months with no income going forward. Hoping to get to two digits on a monthly basis next and go forward from there.

  2. Just amazing stuff here EMIP. Love the quality dividend companies that you added to your portfolio. Also, must say, huge fan of the Swagbucks cash out to buy stock. You created $25 out of noting and turned it into an income producing asset.. Unreal stuff!

    Bert

    1. I’ve made quite a bit of money with CashCrate. I’ve actually got to where I can cash in $25 a month or more in SB, most of which I earn myself (i.e., without referrals) so I find that it’s pretty easy to make money with it.

  3. Congrats on the dividend income, it wasn’t too long ago I was getting similar amount of dividend income as you. Fast forward a few years, now we’re getting over $1k in dividend income per month. Keep that snowball rolling!

  4. That’s Awesome! Really important for you to keep up the keeping track so you can watch it grow. When you look back next year and see the growth, month after month, quarter after quarter, year after year will keep you inspired and focused

    1. That’s the plan. As long as I just reinvest and get dividend growth, the income would even grow without additional capital. More investment will compound the growth and diversify the income even more.

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