Dividend Income – July 2015




plan on recording my monthly dividend payments on this blog for you all to see. I earned £9.88 in the whole of 2013, £590.33 in 2014, and I have a goal to earn £2,000 in Dividends for 2015. 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 have three accounts where I’m currently earning Dividends from – I have an ISA account with H&L and iWeb, and a taxable share account with iWeb. I didn’t receive any payments in my new ISA this month, but here are the numbers for my two other accounts. 



July Dividend Payments:
H&L ISA
GlaxoSmithKline £15.20
HSBC £4.84
XL Group £0.40
Loyalty Bonus £0.12
Total £20.56
iWeb ISA
Direct Line £108.35
Total £108.35
Combined Total £128.91

July’s Dividends turned out quite well in the end. Another month where the total was over £100. My monthly average has reduced slightly from last month, but they’re still in the area of what I need to hit my 2015 Goal of £2,000

At the end of June my average was £163.11 for 2015. This month, the average has gone down to £158.23. To be on track with my 2015 Dividend Income Goal (£2,000) I need to bring in £167 per month. My dividend income is very sporadic so I’m not expecting to hit that amount every month, but I’m pleased to see my monthly average is now well within reach.  

Over the course of 2014, my dividends averaged £49.19 per month. I received a Dividend payment in every month last year, so I can now make a Year-on-Year comparison for every month. In July last year I received £56.62 in Dividends. This represents a 128increase Year on Year. Here’s a breakdown of the year so far:

Dividends – 2015
January £83.47
February £56.22
March £172.36
April £101.80
May £339.89
June £224.94
July £128.91
August
September
October
November
December
2015 Total £1,107.59
2015 Average £158.23

I’m roughly where I need to be to hit the 2015 Dividend Goal of £2,000My forward dividends don’t reach that amount currently. I’m also allocating any surplus capital into my Kindle Publishing business at the moment until I can raise that income to a level that matches my current salary. 

I have my biggest ever wage coming through for August, and a big wage in September (although I’ll be on part time hours), so I’m going to spend some time calculating if I can afford to purchase some shares. Before I buy any shares I’ll need to make sure I can cover the following:
  • My predicted monthly expenses
  • Kindle Publishing Investments (writing, graphic design, promotion costs)
  • A surplus of cash after making an investment, and covering all of the above, to take into future months as a back up. If this amount is zero, I won’t make an investment. 

There’s a chance that I won’t hit my goal due to this, but I’m looking at the bigger picture. I intend on taking my investing to a NEW level next year when I’m earning more money working for myself. For July, my early calculations suggest I’ve earned over £1,000 from Kindle, which I’ll get paid at the end of September. I can finally cover my expenses with Kindle income alone. My next step is to take that income to the same level as my current wage at work. At this stage I can return to investing in Dividend stocks as per normal. I’m hoping that my Kindle income will continue to rise and allow me to invest with more capital than I’ve been able to previously or if I had just kept working full time. 


The frustrating thing is that I’m probably 2-3 investments away from hitting the goal (so close!). I’m confident that I could make 1 investment this year and possibly 2 by the end of the year, but I might run out of time to receive the Dividends in time. My H&L ISA cash is stacking up from the Dividends themselves, so I’ll probably make an investment in October with that investment money, which will help me. 

Can I invest in a good value, reliable company that will pay a dividend by December 2015? I don’t know! I won’t force the issue and I won’t be disappointed if I don’t hit it as I’m looking at a much higher income overall for 2016. 



How was July for you? Are you still on track for your 2015 Goals? Or is it looking a little close for comfort like me?

0 Comments

  • M from There's Value

    Reply Reply 3rd August 2015

    As always, a very sound and reasoned plan to earn and save Huw. I do hope your kindle business increases rapidly so that you will be able to also hit the investment goals! We just dared ourselves to cut our grocery bill in half, so have started meal planning from Thrifty Lesley's website, so hopefully that will save us a bit more on expenses to put towards dividend growth stocks or P2P lending.

    Looking forward to seeing you soon,

    Cheers

  • Anonymous

    Reply Reply 3rd August 2015

    Huw

    Considering your success with Kindle and the growth potential it offers. I would say that investing in that as opposed to buying more shares is a logical thing to do.

    My dividend income for July was good with a solid £720.18.

    Looking forward to York.

    Richard

  • Huw Davies

    Reply Reply 3rd August 2015

    Hi M,

    I hope you're well!

    Thanks for the kind words. I appreciate it.

    All the best with cutting your grocery bill in half. It sounds like one of those challenges you really can't lose from trying. Even if you lower it by 25%, that's still excellent.

    I'll keep an eye on your progress!

    Cheers
    Huw

  • Huw Davies

    Reply Reply 3rd August 2015

    Hi Richard,

    Thank you for the support. I agree, it just seems to make sense to crack on with Kindle with the returns I'm getting.

    Wow, July was a beauty for you Richard well done. £720! I bet that resulted in a "Get in there!", followed by an enthusiastic fist pump when you added it up.

    See you soon and thanks again for the support!
    Huw

  • Tawcan

    Reply Reply 5th August 2015

    Between your Kindle sales and dividend income you're already on your way toward FI. Very impressive stuff Huw.

  • Dividend Diplomats

    Reply Reply 5th August 2015

    FFBF,

    Nice increase YOY and before you know it, your average will be $300/month, no doubt. You'll breeze by $2K, I have a feeling, with Sept/December months still ahead – those are usually heavy. Congrats and keep it up.

    -Lanny

  • weenie

    Reply Reply 5th August 2015

    Hey Huw
    Another solid month of dividends. As you say, it makes sense to invest in your Kindle project, to continue with the momentum you have going. I'd be quite optimistic that you'd be able to get at least one stock in before the end of the year, especially with the dividends accumulating in your HL account! 🙂

    As you've seen, I've achieved a couple of my goals this month, although the 'Future Fund' one might be a challenge to get to and my savings rate could be taking a dive over the next few months!

    Anyway, keep up the great work!

  • Huw Davies

    Reply Reply 5th August 2015

    Hey Weenie,

    I'll be updating people shortly, but I did the maths and worked out that I could conservatively afford one share purchase this month, so I went for it!

    I'll also be able to buy shares in October when my H&L account reaches £1,100 in cash. This should be put me close to the target, but likely to be a little short – probably one more purchase would do it actually!

    You've made great progress this year overall, and I think you and I will both be up against meeting our Future Fund goals. I fancy your chances more than mine!

    Cheers
    Huw

  • Huw Davies

    Reply Reply 5th August 2015

    Hi Lanny,

    I hope you're well!

    Yes, I'm very pleased with the YOY increases. July was a good month for me last year, so this YOY increase was a little lower than some of my previous months.

    I think it's going to be close to £2k. If I wasn't investing in Kindle I would be very confident of hitting it, but we'll just have to see how it goes.

    Thanks for the support!
    Huw

  • Huw Davies

    Reply Reply 5th August 2015

    Hi Tawcan,

    Yes, things are looking great. The crazy thing is I'm still watching the publishing business grow, and I have so much more to accomplish there. The dividends are also ticking along really nicely and I hope to drive more money into them over the next 12 months.

    Watch this space! (Do people say that anymore?)

    Cheers
    Huw

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