The first month of the year ended yesterday. I’m working on building up a passive income stream that can provide additional funding when it comes time to retire in addition to Social Security and any pension funds that I’m able to get. Dividends that consistently grow are a good sign that a company has adequate income to build their business and provide monetary benefits to its shareholders.
In the past six months, I’ve been able to build small positions in eight different companies that pay dividends each quarter. In January, two of my companies paid out dividends to me. I own a few shares of Wal-Mart (WMT) stock in an account with Loyal3. I also own a few shares of stock in the Bank of Nova Scotia (BNS) in a TradeKing account. The former pays cash into my account, while the latter allows me to automatically reinvest my dividends. This means that my BNS dividends should grow each quarter (at least in Canadian funds) without my doing anything else. I earned infinitely more in dividend income this month than I did at this time last year, as I was not investing in dividend-paying stocks. Any income whatsoever is an improvement over last January’s total of a big, fat goose egg. Without further ado, here is my dividend income for January 2016:
Wal-Mart (WMT) $1.48
Bank of Nova Scotia (BNS) $3.00
TOTAL for January: $4.48
My BNS dividend purchased an additional 0.065 shares of stock in the company, which should add approximately $0.14 to my dividend next quarter given a similar exchange rate. I’ll be looking to add additional shares as funding comes available.
My $4.48 is not a massive amount of money, and it would allow me to take about 15 minutes off if I were to try and use my passive income to replace active income at this point. However, it’s a start, and as it’s been said many times before, the journey of a thousand miles begins with the first step. I’ve taken more than the first step, but I’m early in the journey and hope to add shares and passive income going forward. At this point, my forward dividend income is nearly $109. Hopefully, this will grow to $250 or more by the end of the year. I’ve added this income summary to my monthly dividend income page.