This site includes affiliate links. Please note that I may be compensated should you sign up for these programs. Here I sit on the evening of October 1. Yet another month has come and gone. September is now in the books. As the Steve Miller Band once sang, “Time keeps on slippin’, slippin’, slippin’ into the future.” This means that it’s time to add up my passive dividend income for the month.
September was the third month of the quarter, and that’s usually a good thing for dividend income investors. More companies pay out the final month of the quarter than they do in other quarters.
I’m building up a stable of quality companies and funds that pay out dividends to their shareholders. It’s like I get paid for doing no work. Of course, I had to work to earn to capital to invest, but after I use that capital to buy shares, I have to do nothing else. This is a cool concept, to say the least.
I look to buy companies that have the ability to grow dividends over time, and this should provide me with a growing stream of passive income. As I note pretty much every month, passive income is the best income! The only bad thing about passive income is when you don’t have enough of it to pay your bills each month.
I own companies that make money every single day. They bring in big profits, and they pass on some of those profits to me. What’s not to love about this setup? Hopefully, I’ll have enough passive income to take care of my standard of living at some point in the future. Right now, the buildup is slow and sure. Without further ado:
Passive Dividend Income For September 2017
Here are the companies and funds that paid me in September:
The Kroger Co. (KR) $6.25
Southern Co. (SO) $17.40
Johnson & Johnson (JNJ) $8.40
Realty Income Corp. (O) $5.29
Vanguard Total Stock Market Index ETF (VTI) $2.77
Total Dividend Income from IRA $40.11
JP Morgan Equity Income R5 (OIERX) $1.88
Cohen and Steers Realty Shares (CSRSX) $7.58
Total Dividend Income from 401k $9.46
Total Passive Dividend Income for September 2017 $49.57
This was nowhere near a record, and it did not even meet last month’s total dividend income. Still yet, it was nearly $50 that I did not have to work for. I just learned that Realty Income announced a raise. This raise will only add $0.15 to my passive dividend income over the next year. However, this company tends to increase the dividend about every quarter, which will allow my earnings to compound more quickly.
Passive Dividend Income Comparison
If I look at my passive dividend income from the same month last quarter, it becomes apparent that my September income was lower than June’s. While this is not a great development, it’s largely tied to the REIT fund that I own. This fund pays more in dividends in June and December than in March and September.
Now for the better news. By comparing my year-over-year results, I had a pretty large gain this year. Last September, my dividend income was only $18.87. This number grew to the $49.57 listed above, which was an increase of a little more than $30 in a year.
The passive dividend income that my companies paid me in September now brings my dividend income for 2017 up to $336.74, which is already nearly $100 more than I earned in all of 2016. And I still have three months to build on this total. This is where dividend growth gets even more exciting.
The dividends that my holdings send my way, at least in my IRA, get reinvested in stocks that will also pay dividends. This compounding action should lead to a virtuous cycle of growing dividend income over time. Hopefully, within just a few short years, I’ll be able to talk about passive income in the thousands, rather than the hundreds.
How was your dividend income during September? Did it grow year over year? Let me know in the comments.
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Disclaimer: I am not a professional financial advisor. I intend this information for informational and educational purposes only. Perform due diligence before investing in any equities. See my disclosures page for more information. I’m long O, SO, KR, JNJ, VTI, CSRSX, and OIERX.