Passive Dividend Income–December 2017

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2017 has come and gone. It seems as though it just got here, but now it’s in the history books. I spent 2017 buying dividend-paying stocks to build up passive dividend income that can buy even more. My hope is that by the time I hit retirement in a couple of decades, I’ll have a nice stream of money coming in.

Dividend Income Is the Best Way to Earn Money in Pajamas

I’ve noted on here multiple times that passive income is the best income. It comes in whether I go to work or not. I’ve already put in the effort to get this stream of passive income rolling my way.

My process is simple. I find companies that pay out regular dividends to shareholders. Preferably, these dividends have grown over time. A growing dividend requires additional revenue and income, or else the growth will end.

These companies are frequently multinational corporations that make sales and profits all over the world. For example, I own a few shares of Johnson & Johnson. This company fits into the description above.

Other companies that I own make most, if not all, of their sales and profits from US business. I received a dividend from Southern Company (SO) in December. It operates in the Southeastern US. Both companies pay me because I own a small sliver of the company.

They have people who work for me. If the power goes out in a given region, Southern Company will have workers engaged 24/7 to fix the problem. Their customers, in turn, pay for the service on a monthly basis. Again, in turn, Southern Company returns some of this revenue to me on a quarterly basis. It’s a great system, and tends to be more stable than capital gains.

A New Passive Dividend Income Record

Back in November, I had a nice level of passive dividend income, nearly reaching $75. This bested the amount I earned from dividends in December of last year. I knew that I had some dividend income heading my way from some funds I hold pay out more in December than in the rest of the year combined.

I set a record in December. Here are the companies and funds that paid me in December:

Kroger Co. (KR)                                                                                    $6.25
Southern Company (SO)                                                              $17.40
Johnson & Johnson (JNJ)                                                               $8.40
Realty Income Corp. (O)                                                                  $5.30
Vanguard Total Stock Market Index ETF (VTI)                    $6.06

Total from Traditional IRA                                                        $43.41

JP Morgan Equity Income R5 (OIERX)                                 $14.14
Cohen and Steers Realty Shares (CSRSX)                          $54.11

Total from 401k                                                                              $68.25

Vanguard Institutional Index Fund (VINIX)                         $0.13

Total from 457 Plan                                                                       $0.13

Total Passive Dividend Income for December 2017:     $111.79

I set a new record in December with more than $111. This was my first month passing into three figures in passive dividend income. It’s pretty exciting to see to say the least. My hope is that the months with more than $100 in passive income will become ever more frequent in the months and years to come.

The snowball is definitely starting to roll. As it does, I’ll be able to buy more shares, which should build up the snowball over time.

My Year-Over-Year Comparison

This was a 67.45 percent increase over the same month in 2016. Also, it brings my passive dividend income for the entirety of 2017 up to $531.30, which was an increase of 120 percent in a year-over-year comparison.

My 12-month passive dividend income estimate for 2018 is now up to a little over $595, which is nearly $50 a month. This does not count the 401k income and the income that I might get from the 457 deferred compensation plan that I recently opened. These are harder to track.

The income from my IRA will allow me nearly 30 hours of freedom from work in 2018, which is a big increase from the 18 hours of freedom I estimated at the end of 2016. These numbers were basically $0 and 0 hours when I started attempting this process in 2015, so I’m showing some good growth.

How was your dividend income in December?

Keep Up With My Progess

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8 thoughts on “Passive Dividend Income–December 2017

    • cp913 says:

      This is true, but if the money is left in the market, the dividends can buy more shares at a lower price, which should increase income/cash flow over time. The S&P 500 dividend payouts only dropped by 20% and recovered to new highs shortly thereafter. Also, it is likely that a diversified portfolio will regain those capital losses eventually. Thanks for visiting.

  1. I have to agree – I love dividend income and dividend growth. Every time I wonder if there are better passive investments out there, I look into real estate and just can’t see past the hours and labor it requires. Gotta love the liquidity of equities as well. Thanks for your post and nice writing.

    • cp913 says:

      You can own real estate without “owning” real estate. I own shares in a few REITs, which means I’m technically a landlord without all of the hassle. I get liquidity too.

  2. Looks like December and your whole 2017 was great. With a new record for the month and a very healthy year over year gain from 2016 you are definitely making some great progress with your passive income stream. Nice to see some common names paying us both last month. Keep up the good work.

    • cp913 says:

      I’m looking forward to see how much growth I can see over the next year. My hope is that some raises and a few buys will build up my passive income. Thanks for visiting.

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