Dividend Income – December 2014

plan on recording my monthly dividend payments on this blog for you all to see. I had a Goal for 2014 of producing more than £300 in Dividend payments, which I hit in September. My Dividend Income Goal has been extended (Version 2) to £550
This post will collate all of the dividends I’ve received this month and how I’m tracking against my Dividend Goals. I will reveal which companies have paid, and how much they’ve contributed.

I’m in the early stages of Dividend Growth Investing, yet I’m already witnessing the increased impact they are having on my monthly income. Over time, the Dividends will continue grow and become more significant. My long term goal is to receive enough Dividend Income to surpass my monthly expenses. I need to remain patient in this early stage because success will not arrive overnight. I will continue to save a large proportion of my monthly income (over 50% for 2014), invest as much money as I can afford, and re-invest all other income streams into Dividend Growth stocks. I will repeat this process consistently for several years to meet my goal of becoming Financially Independent by my 40th Birthday.

December Dividend Payments:
BAE Systems £22.63
BP £15.37
HSBC £4.84
Newton Asian Income Fund £6.89
Royal Dutch Shell B £6.33
Tesco £4.22
Unilever £11.03
Loyalty Bonus £0.13
Total £71.36

December’s dividends were above average for me – £71.44. Over the course of 2014, my dividends averaged £49.19 per month. 

In December last year I had my highest payout for 2014 at £5.57. This year represents a 1181% increase in comparison. 


V2 Target Hit

Now that we’ve reached the end of the year I can tally up all of my dividends for 2014. My total is £590.33. I hit my V1 target (£300) in September and I hit my V2 target (£550) this month. In 2013 I earned £9.88 in Dividends, so this is a healthy increase year-on-year. 

I’m really pleased with the progress I’ve made this year. My 2014 total is nearly twice the amount I predicted I would receive back in March. I underestimated what I could achieve, and I want to make things a lot harder for 2015. 

If I round my dividend total up to £600, and include that figure for 2015. I can expect to earn this amount and a bit more for 2015. I’ve worked out that I’m likely to receive something around the £1,500 mark based on how I’ve performed this year. I want to move things up a gear next year so I’m setting a Target of £2,000 in dividends for 2015. This is a substantial leap on what I expect to earn. Finding an additional £500 on top of expectations is almost as high as the amount I earned in 2014 alone. This will require me to do something different. It’ll force me to earn more income in order to invest more money and receive more dividends. 

Happy New Year and bring on 2015!


How was December for you? Did you end up meeting your goals? Have you set your goals for 2015?

0 Comments

  • Hi Huw

    Happy New Year

    Massive congratulations on the dividend income this year, which considering you have only been investing for just over a year is awesome. You should do better than just rounding up a bit from this year as some of the purchases you made towards the year end will pay dividends in the first half of this year which you didn't get last year. Your goal for 2015 of £2,000 is pretty challenging, but I hope you can do it as it will really motivate you to keep adding cash to your portfolio for your future benefit.

    You manage frugal living much better than I do, so will make much quicker progress than my early years when I didn't save anywhere near the amount I should have done (enjoyed my skiing holidays too much and lived in a house much bigger than was necessary for two people).

    You have also set yourself some great goals for this year and will be really interested to see how you progress on financial coaching as it's probably something I may be able to do to top up my income when I do get to FI but still want to keep my mind active.

    Look forward to following your progress in 2015.

    Best Wishes
    FI UK

  • weenie

    Reply Reply 2nd January 2015

    Happy New Year Huw!

    Awesome numbers – you totally blew away your targets (both versions!). 2015's is a challenging one but I have a feeling that you will get there! My own dividend goal is far more modest but perhaps I too will end up updating my goal if I hit it too easily!

  • Tawcan

    Reply Reply 2nd January 2015

    That's excellent progress you're making. £2,000 in dividends for 2015 is a nice goal as you're reaching higher. I'll have to tally our Dec dividend income in early January, I'm guessing we should be in the $700-800 range. Looking forward to a great 2015.

  • Huw Davies

    Reply Reply 2nd January 2015

    Thanks Tawcan!

    Yes the £2k total is out of my reach at the moment, but I'm hoping I can make some significant increases in my income for 2015, which will then free up more capital to invest with.

    I wish you all the best with your Goal too!

    Huw

  • Huw Davies

    Reply Reply 2nd January 2015

    Thanks for the vote of confidence Weenie!

    I'm laying it out all there, and we'll just have to see how I get on with the side incomes. I'm not sure if I'll do it, but I'll give it one hell of a go!

    I wish you all the best with your dividend income for 2015 too!

    Huw

  • Huw Davies

    Reply Reply 2nd January 2015

    Hi FIUK,

    Thank you for the kind words. I really appreciate it!

    My dividends were very encouraging in 2014. It's a big step up for 2015, but I want to push the boat out and see what I'm capable of. My low cost of living has helped me work towards my goals so far. I'm not sure how much more I'm going to spend now that I'm not working towards an expenses goal, but it will no doubt increase. I plan on increasing my income by a much larger degree to counter that. I might be living well under my means now, but I've had years of excessive spending too. I dread to think how much I've spent on Alcohol over the years!

    I'm looking forward to taking on these goals this year. I feel positive about it, but they feel difficult which is a good thing in my opinion. The 'money coaching' is something I'd take great pleasure out of as I love coaching in general. If I'm making progress in the right way, I'll create a contact tab on this Blog at some point this year. I'm not sure where it'll lead to, but I'd enjoy the process in itself, even if I just had 3 clients.

    Thanks again for your continued support this year. I get a lot of motivation from looking at your progress too. Who knows, I might get an opportunity to meet you in person at one of our UK 'Meet ups' this year. God luck in turn with your goals this year!

    Huw

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