Ahh, dividends.
Even just hearing that word conjures up all kinds of warm and fuzzy feelings for me.
I remember playing the board game Monopoly as a kid. My favorite Chance card was the one where Mr. Monopoly (or Rich Uncle Pennybags) collected his bank dividend of $50.
I thought that was so neat. Collecting money for nothing. Growing up as poor as I did, it seemed like a pipe dream as a child.
Well, it’s no pipe dream.
But it is a dream; it’s a dream of a lifestyle that almost anyone can live, as I’ve proven out over the years.
Mr. Monopoly sits on my shelf at home, reminding me every day of just how far I’ve come…
How far?
I went from below broke in early 2010 to financially independent in early 2016.
And I did so with no particular advantage(s) over anyone else. I grew up in a crack house in Detroit. My parents abandoned me. I have no college degree. I worked at a car dealership making ~$50,000 per year – until I didn’t.
Those six years of my life I set aside to aggressively save and intelligently invest my capital resulted in financial freedom at 33 years old – which is how I became Mr. Free At 33.
That financial freedom is underpinned by the five-figure and growing passive dividend income my FIRE Fund generates on my behalf.
I aptly named my portfolio the FIRE Fund because it allows me FI/RE (financial independence/retired early).
The Fund is a portfolio built on the tenets of dividend growth investing, whereby I allocate my capital almost exclusively toward high-quality stocks that have lengthy track records of paying rising dividends year after year.
These are world-class businesses. Because of that, they tend to rake in more profit year in and year out. And because shareholders are ultimately the collective owners of any publicly-traded company, growing dividends are our rightful share of that growing profit.
Well, the growing dividends that are sent my way by the businesses I own a slice of are enough to cover my basic personal expenses in life, meaning I don’t need to ever have a job again. Haven’t had one since turning 32 years old. And I have no plans to ever have one again.
If you’re interested in using dividend growth investing to achieve FIRE for yourself, check out my two best-selling books on this: The Dividend Mantra Way and 5 Steps To Retire In 5 Years (also available in paperback).
What you’ll soon see is the tangible manifestation of all of these concepts I write about.
The table below lists every dividend I received (as well as each respective company that paid it) from the preceding month.
This is real cash money, folks. Every time a dividend comes in, that’s real-life money I can use to do whatever I want with. Now we all know why Mr. Monopoly loved to kick back with a cigar, like a boss.
When you’re collecting a dividend a day, you are a boss!
Without further ado…
| AT&T Inc. (T) | $100.00 |
| General Mills, Inc. (GIS) | $36.75 |
| CVS Health Corp. (CVS) | $10.00 |
| Verizon Communications Inc. (VZ) | $44.25 |
| Raytheon Company (RTN) | $21.69 |
| American Express Company (AXP) | $7.00 |
| General Dynamics Corporation (GD) | $18.60 |
| Air Products & Chemicals, Inc. (APD) | $22.00 |
| British Am Tobacco PLC (BTI) | $21.99 |
| ONEOK, Inc. (OKE) | $82.50 |
| AbbVie Inc. (ABBV) | $38.40 |
| Abbott Laboratories (ABT) | $9.80 |
| Colgate-Palmolive Company (CL) | $21.00 |
| EPR Properties (EPR) | $14.40 |
| Hormel Foods Corp. (HRL) | $3.75 |
| Kinder Morgan Inc. (KMI) | $15.00 |
| Main Street Capital Corporation (MAIN) | $22.80 |
| National Grid PLC (NGG) | $61.82 |
| National Retail Properties, Inc. (NNN) | $72.50 |
| Omega Healthcare Investors Inc. (OHI) | $105.60 |
| Praxair, Inc. (PX) | $8.25 |
| Procter & Gamble Co. (PG) | $36.58 |
| Realty Income Corp. (O) | $20.90 |
| Stag Industrial Inc. (STAG) | $13.02 |
| Tanger Factory Outlet Centers Inc. (SKT) | $14.00 |
| Apple Inc. (AAPL) | $14.60 |
| The Clorox Co. (CLX) | $28.80 |
| HCP, Inc. (HCP) | $29.60 |
| Welltower Inc. (WELL) | $39.15 |
| Fastenal Company (FAST) | $20.00 |
| Papa John's International Inc. (PZZA) | $3.38 |
| Starbucks Corporation (SBUX) | $16.20 |
| Williams-Sonoma, Inc. (WSM) | $10.75 |
| Novo Nordisk A/S (NVO) | $13.87 |
| Chatham Lodging Trust (CLDT) | $15.95 |
| Total: | $1,014.90 |
Just for reference, a great resource for tracking your portfolio and everything related to it is Personal Capital.
These are some magnificent companies. It’s hard to be anything but pleased when you’re collecting this kind of passive income.
This is, by the way, the first time I’ve collected $1,000 in dividends outside of one of the end-of-quarter months. So that’s another neat milestone completed.
If you would have told me at 26 years old that I would eventually figure out a way to earn $100 per month, in perpetuity, for doing nothing at all, I would have been amazed and very happy to hear that.
If you would have told me at 26 years old that I would eventually figure out a way to earn, on average, more than $1,000 per month, in perpetuity, and that monthly income would be growing faster than inflation, I would have passed out in disbelief.
Yet that’s the position I find myself in today, just 10 years after that hypothetical situation.
The 26-year-old version of myself would be pretty impressed, if not completely shocked by what he eventually would go on to do. What’s transpired between then and now has been a crazy and wonderful adventure. And it continues to get better.
It continuing to get better is partly a function of the growing dividends that I’m collecting, as my five-figure annual dividend income is growing like clockwork. With that, my options, flexibility, and very freedom also grow like clockwork.
This lifestyle gives me all the feels, guys. I couldn’t be happier.
And that’s why I continue to do whatever I can to inspire, motivate, and educate others – this lifestyle is too good to keep to myself. Furthermore, making my dreams come true involves helping others make their dreams come true.
I believe financial freedom is out there waiting for anyone who has the drive and desire to meet it. We just have to follow the path.
This month’s dividend income is 15.2% higher than the $880.83 I collected in August 2017. The total amount of dividend income I’ve collected in 2018 is now up to $8,044.21. That’s 13.6% YOY growth compared to the $7,082.43 in dividend income I earned through August 2017.
That’s fantastic YOY dividend growth here, especially considering that organic dividend growth (the dividend increases that come from the companies I’m invested in) did the heavy lifting here – I’m no longer aggressively buying stocks. The portfolio is basically in “maintenance mode” from here on out.
And since moving abroad has more or less eliminated inflation from my life, dividend growth isn’t even the concern it once was for me.
Still, large annual increases in purchasing power goes a long way toward improving my quality of life through the additional flexibility/options that comes along with that.
It was another fantastic month, and I hope all of you also had a fantastic August!
Full disclosure: I’m long all aforementioned stocks.
How was your month? How much dividend income did you collect? Is your dividend income (and the growth of it) living up to expectations?
Thanks for reading.
Image courtesy of: bplanet at FreeDigitalPhotos.net.
P.S. If you’d also like to collect five-figure dividend income and reach FIRE, check out some phenomenal resources that personally helped me become financially independent in my early 30s!
Very nicely done, this is a fantastic increase from last year. Keep up the great work Jason. Cheers
BHL,
Thanks. I couldn’t be happier. 🙂
Hope you had a great month, too!
Cheers.
Amazing to see such YoY growth this late in your investing game, Jason.
I’m sure you’ve been asked this question before, but have you ever (just for fun and curiosity, nothing more) calculated roughly how much dividend income you’d be making now if you were still working and saving like you were in 2011?
Enjoy financial freedom, my friend.
Sincerely,
ARB–Angry Retail Banker
ARB,
Thanks, man. It’s pretty awesome. That kind of YOY growth would be great in the US. But it’s phenomenal over here due to such a different cost structure.
Think back to 2011?! When I had a crazy, full-time (and then some) job and was miserable for most of my waking hours? Umm, no. Haha!
But the savings rate is pretty similar. I was at around 60% for 2011. I’m almost certainly higher now. As I’ve noted, I still spend less than half of my net income. It’s just that investing isn’t a big priority for me any more. The money is only a means to an end.
Thanks for dropping by!
Best regards.
The first $1,000 month and the YOY growth is awesome. Nice work! Glad to see (read) things are really working out for you. Congrats on not only the $ success, but the life successes as well.
FI,
Thanks so much. Really appreciate the kind words and support. 🙂
The success I’ve experienced thus far has exceeded my wildest expectations. I can only hope for the same for everyone else out there. Life is just way too short to be unhappy on a regular basis.
Best wishes!
Good Day Jason
what a great month of dividends you had. the YOY dividend increase was impressive too. I like dividend growth investing its so great when dividends that hit my account every month. I see no reason people shouldn’t take advantage of the stock market, the greatest wealth creator in the history of the world. It does allow low income and middle class people accumulate wealth. Dividend growth investing is a great way of doing it and to me you are prof of this. I am so glad to see you able to live your dream with a dividend income that covers your expensive and lets you live the life you choose.
congrats on a great month Jason
Cheers
Michael,
Yeah, it’s a real shame that more people don’t take advantage of the market. People will march on Wall Street to complain about “the 1%” (ignoring the fact that they, globally, are also in the top 1%), yet they won’t take advantage of the system that same “1%” have used. I mean, I grew up in a crack house. Worked at a car dealership. Don’t have a college degree. But I didn’t sit on excuses and take up a victim mentality. It’s a weird thing. All I can do is continue to inspire and spread the good word. 🙂
Cheers!
Thats for sure but as long as long as someone tells them they are in the bottom they will look for others to help them out
Jason,
To quote yourself: “This is, by the way, the first time I’ve collected $1,000 in dividends outside of one of the end-of-quarter months. So that’s another neat milestone completed.”
Damn straight.
– Gremlin
DG,
Haha! Thanks a lot! 🙂
Yeah, it’s kinda nice to finally see four numbers in one of those “off” months. The moving around of securities (via buying and selling) can alter that schedule/dynamic a bit, but I rarely sell. And the YOY growth cuts through the noise and gets right to the heart of the matter.
Hope you also had a great month and are well on your way to your long-term goals.
Best regards.
Man! $1k+ in August? That means you’re really killing it over there. I wouldn’t be surprised to see you come in at more that $14k for the year if that holds up, with Sept and Dec still to come.
Incredible!
Charles,
Thanks for stopping by!
This has all just been a dream for me. One I worked incredibly hard for, no doubt. But it sometimes doesn’t feel real. I’m blessed.
Won’t be hitting $14,000 for the year, but I might come in somewhere around $13,000. I’d be more than pleased with that. As long as the basic expenses remain covered by passive income (FIRE), the rest is gravy.
Best wishes!
Just looked back. Almost exactly double your last August DM update. Not bad for only three years and no day job 😉
Charles,
Wow. That’s pretty neat. So it was five years – most of that time being spent at a job I didn’t like – to go from $0 to over $500. Then it was three years – none of that time spent at a job I didn’t like – to go from over $500 to over $1,000. I think that really goes to show the power of compounding/dividend growth, as well as the inner potential that can be unleashed when you’re free to more properly and efficiently allocate your resources. 🙂
Thanks for that!
Best wishes.
Amazing Jason, I received 297$ in august… better than nothing but far from you! Ahah
But… on the 40k-50k a year I save since 2013, a great bunch is “invested” in my house and in a pension plan with defined benefits so the dividend growth investing strategy is only part of my recipe. My fund stands at 132k after 5 years into dividend growth investing. It is a long journey to get from 0 to 1000$ a month. What you achieved is great!
Sometimes I would like to do like you and sell everything, cash out my pension plan, invest it all into dividend growth stocks and live abroad. But… I don’t! 🙂 to each their ways!
Fais,
Congrats on your own success over there. We all have to define our own success and happiness. As long as you’re happy, that’s all that matters. 🙂
Likewise, moving abroad wouldn’t/couldn’t work for everyone. And thank goodness for that, as I’d have to come back to the States. Haha!
Cheers.
You are doing great and incredibly impressed. I am trying to find that Monopoly image online to give to my 2 boys as a graduation present. It really is a wonderful image and captures everything your journey has been about. Congratulations!!
DB,
Appreciate that very much. Feels great to be here. I was curious all along if it’d be totally worth it, if it would feel like I thought it would. Well, it does. FIRE is very much worth what it takes, in my opinion. 🙂
I just followed an old-fashioned path: work hard, live below your means, invest into blue-chip stocks. It’s the stuff that our great-grandparents were doing. Still works!
Best regards.
nice Jay!
congrats on a new record in a “off” month. absolutely great month.
Love your posts and seeing you live the dream.
keep doing what your doing
cheers
CPI,
Thanks so much. Really appreciate the support!
It was tough six-year stretch there. I gave it the kind of focused effort that few people would be willing to match. But it is a dream of a life now. I couldn’t be happier. I have zero regrets. 🙂
Hope you had a great month, too!
Best wishes.
Nice big payday for you. And whats sweeter its not an end quarter, Thats awesome.
Doug,
Yeah, this was a hell of an “off” month. Super happy! 🙂
Thanks for dropping by!
Cheers.
J –
Phenomenal numbers for the month of August. A lot of work, saving, consistency has gone into your plan, seeing it cross the $1k mark in August is the fruit of it all. You’re doing great Jason, you’re doing fricken great. You are doing YOU and it PAYS off!
-Lanny
Lanny,
Thanks, man!
I am definitely doing me. I’ve just never been one of those people who care much about what other people are doing or what they think. There’s no other life to live other than my own, and life is way too short to live it in any way other than the one that makes me happiest. 🙂
Keep doing you!
Best regards.
Hi Jason,
Your dividend snowball is fast becoming a dividend avalanche!
We got a more modest $54.33 YoY this month in organic
growth. I’m still very happy though considering not a dime of
new money has been added to it while we’ve been accruing for
backup funds in the past year. Next month we’re right back to it
though so should start to see more growth moving forward,
exciting stuff!
It surprises me the investing TV shows don’t talk a lot more about the power of
year-on-year growth, you would think it would be one of their main topics of
conversation.
Oh well, more for us I guess.
Regards,
DN
DN,
Mainstream media not talking about things that actually mater, instead catering to the small attention spans of the masses?! Say it isn’t so. 🙂
Nice YOY growth over there. That’s good stuff. They all turn into avalanches over time. I’m sure your snowball will be one soon enough, too!
Best wishes.
Nicely done Jason! Over $1000 is pretty awesome and it’s a lot of money when you’re living in Thailand.
We were just a few dollars short of $1,600 for August dividend income. Pretty solid still.Have already received over $12,000 in dividend income so far in 2018 and I think we might be able to break the $18k mark by end of the year. Pretty happy with our progress. 🙂
Tawcan,
Thanks, man. I just couldn’t be more pleased. It’s definitely a lot of money over here. The passive income, all in, is pretty much the equivalent of earning $50k or so per year in the US after adjusting for purchasing power.
Awesome work over there. Those are some huge numbers. That’s the result of a lot of hard work, planning, and execution. It’ll continue to pay off! 🙂
Cheers.
Amazing results Jason!
I should receive another quarter’s worth of dividends sometime around the end of this month. I can’t wait. Its like getting to open a Christmas present four times a year. Its not just the money that comes in that excites me, but also the opportunity to compare this quarter, with last year, and then guess at the overall year’s growth rate.
So far this year the dividend growth data looks like:
Vanguard High Dividend Yield Index Fund Investor Shares (vhdyx)
Q1 = 12.71%
Q2 = 5.27%
Avg = 8.99%
Vanguard International High Dividend Yield Index Fund Admiral Shares (vihax)
Q1 = 13.23%
Q2 = 13.59%
Avg = 13.41%
Comined avg = 11.20%
jh,
Definitely like a Christmas gift. I actually think it’s like having a “birthday” every day:
https://www.mrfreeat33.com/how-to-make-every-day-your-birthday/
Cheers!
” When you’re collecting a dividend a day, you are a boss!” Isn’t that great? Just for waking up and staying alive! Nice to see you are doing great Jason. Take care my friend… Omar
Oh, I forgot. I collected $609 for August. Its great!
Omar,
It’s beyond great. That’s a very healthy chunk of income right there, all for doing what amounts to practically nothing. It’s a pretty sweet deal! 🙂
Best regards.
Ahhh I What delights me most ? When my dividend check arrives ( JD Rockefeller ) 🙂 We have discussed this before but there is no better feeling than getting paid by a company that does not require you to show up every day for “work” 🙂 even better to get a pay increase on top of it ! A while back I bought SOHO and I got 6 dividend increases in the past 18 months from that one great company. Were can you “work” and get 6 pay increases in 18 months ???
I enjoy all the updates, Thank you for all you do.
Bob,
This year has been particularly great with the dividend raises. Multiple raises from numerous companies, and dividend growth investors should certainly be pleased with the YOY growth from many of these companies. It’s been one of the best years for dividend raises since I first started investing back in 2010. That’s for sure. Just keeps getting better! 🙂
Cheers.
This is awesome Jason! I want to start building a dividend portfolio myself but I’m worried about the amount I’ll lose to taxation. What are your taxes like on the portfolio each year? Do you get a break for being in Thailand? Thanks!
Danny,
If you’re talking US stocks as a US citizen, the taxation is pretty favorable (relative to W2 income).
You’re looking at $0 in federal taxes (and FICA) for qualified dividends as long as you’re at or below the 15% tax bracket. So a single filer can earn over $40,000 (after factoring in the deduction) in qualified dividends and pay zero.
I’d recommend you do a lot more research on this subject since it sounds like you’re new to it. There are a ton of resources, including plenty directly from the IRS. 🙂
Cheers!
Great work Jason!
My Aug. ’18 dividends came out to $204.51 which is a 20.9% YoY increase over Aug. ’17. On the year I’ve collected $2,704.81 which is a 26.03% increase YoY.
-TBTF
P.s. I’ll be honeymooning in Thailand in January, any recommendations for places to go?
TBTF,
Awesome stuff there. Congrats on the YOY increase! 🙂
As for your vacation, Thailand is a big place. Depends on what city/region you’ll be spending time in. I’m assuming you’re going to a beach area. Samui was great for us. The Krabi area is perhaps what most people think of when they imagine Thai beach scenery, but it’s gotten really crowded over on that side. They even shut down Maya Bay for six months.
Cheers!