Hi my precious readers! Hope you guys are still enjoying the summer. I sure am enjoying Toronto’s summer. Around noon yesterday, my wife and I walked about 3-4km to Korea Town nearby downtown Toronto, dined out, picked up some fresh vegetable then stopped by a bookstore called Indigo nearby our home. I always do monthly ritual at Indigo which is reading latest Forbes, Bloomberg business week, Fortune, Canadian business and Money sense while enjoying delicious black coffee in cool air-conditioned bookstore until supper time (of course my wife reads newest art magazines 🙂 ). For supper we had one of my favorite dishes of all time, Korean BBQ with beer. Nothing beats finishing off our weekend with Korean BBQ and ice cold red beers with my wife and fresh carrots and peanut butter for my greyhound.
Well. I don’t know whether you can keep this as a top secret but all the things that I have mentioned above (including several cans of beer) are all covered…. What? Yes, you heard me right. All of them are free….. How the heck do I do it? Well… frankly, it is quite easy and you can start it right away. Let me tell the secret in one sentence. “We live within our means, save as much as we can and invest wisely”
When you buy good quality companies, you typically get paid with regular dividends, and within enough time, you end up with solid portfolio of companies that pays you sufficient dividends to cover your expenses. Once your expenses are fully covered by those free dividend payments, you can reallocate your energy and passion to do something you like rather than sucking up with your hated bosses from your day job. I am not saying you should quit but what’s better than making money by what you dream to do? You get paid no matter what… when you sleep, when you travel, when you don’t feel like to commute for an hour to get to work, when you are sick of dealing with office politics… You can put whatever hated reasons you can think of here to focus on your dividend (or passive) income strategy.
Without going on another 50 hours to explain further, here is a list of stocks that I received dividends in July and August 2015.
In July 2015, I have collected $561 of dividend income and $278 in August 2015. That is more than my family’s monthly grocery budget. What did I do to collect the money? Nothing… I did really nothing to collect the money. On top of that, the dividend income is getting higher and higher as time goes by. For example, my Cominar REIT stocks provided me $42.88 in July but in August I got paid a little bit higher at $43.12 due to automatic DRIP set up with the stock and it will keep increasing its body infinitely. I am quite confident that in 5 years, the company will pay me $57-60 monthly and within another 5 years the company will pay me $75-$80 or even higher monthly. That’s how reliable and predictable high quality dividend income companies provide their returns to you even though you do nothing to collect them. Just buy, forget and collect dividends forever. Think about it, all of my dividend stocks from my portfolio will get themselves bigger and pay me more every month.
I am on the right track because in July and August 2014, I received nothing. I mean $0 dividend income. July 2015 dividend income increased by $561 compared to the last July and August 2015 dividend income increased by $278 compared to the last August.
On top of that, I purchased the following dividend stocks in August 2015 from the proceeds of selling VTI.
140 shares of ARLP at $24.82.
100 shares of BHP at $35.58.
120 shares of CSX Corp at $29.60.
40 shares of Chevron at $83.20.
76 shares of NOV at $39.52.
34 shares of NSC at $81.99.
36 shares of UNP at $92.68.
50 shares of WMT at $71.80.
All the purchases will add US$1300 to my annual dividend income. That’s more than $100 every month. Yay!!!
I will keep buying when opportunities are out there in the market. I see many opportunities lately due to the crash of the oil price which is just perfect for me. As you may know, it did not take too long to build this portfolio. When I started this blog (a year ago), my net worth was around 80K (excluding my car) and that only provided me less than $2,000 of annualized dividend income. However, now it provides predictable $6,000 of annualized dividend income per year and that number will always go up. Amazing huh?
As I mentioned several times, building your dividend portfolio isn’t very difficult. See the following links for excellent ways to save money and invest.
- 30 most important tips to be a millionaire no matter how much you make.
- Renting vs Buying
- 16 most important tips to save on car insurance by 40-60%
- Norbert’s Gambit- Save thousands of dollar from foreign exchange conversion fees
- What’s in my wallet
- Needs vs Wants
- 20 smart moving tips that will save you time and money
- How to save $1,000 annually from your TV cable bill
Check out my portfolio page to see what stocks I own and the following article for more investment tips-How to Simply Invest and Get Richer for Dummies in 8 Easy Steps.
If you are also a dividend investor like me, then you should check out the following page to see how other dividend investors are doing. You won’t regret a moment of reading their valuable and inspirational articles. The Financial Bloggers Dividend Income List. Oh right, you may want to check out the following section to see what other investing bloggers are up to as well. Blogroll
Hope my real cash dividend income updates inspire anyone who is dreaming of becoming financially independent. I am not there yet but I am happy to share where I am and where I will be headed along the journey to be a millionaire thus financially more independent. Don’t dream on winning lottery or a jackpot from your local casino. That’s not going to happen to you. Dream on something that is so real that you can catch it after executing easy passive income strategies. It is not going to take very long to see the results and I am sure you can do it as well. All you need is a strong commitment for your future. Start your first step right now and come along for the million-dollar journey. Hang in there because your loved ones got your back (and me 🙂 )
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Not as high as July but still great nevertheless. Especially considering that August is generally a slow month for most. I have a feeling your September update and beyond is going to blow these numbers out of the water! Way to put all that capital to work and adding another $1,300 to your annual dividends! We thought we did well this past month putting our capital to work but is is pale in comparison to what you have done. Congrats!
Best wishes and continued success on your personal journey! AFFJ
Thanks AFFJ, The proceed from VTI sale was good for me to jump in and buy strong companies that have been hit hard. Who knows whether they are going to go down further or even up but I will just buy them and forget as long as their fundamentals are strong. I am glad things are working out great for both of us. Keep up the great work and thanks again for stopping by!
Great dividend income from your portfolio with several Canadian banks doing their share I see. Always nice to see fellow shareholders in the large Canadian banks. I’m still on the fence regarding energy and I may very well lose out on the potential rebound of the sector but I just don’t like that crazy volatility. I see you added CVX which looks quite compelling with that crazy high yield. We’ll see. Maybe I nibble on energy one day. Great photo of the food too. Makes my stomach grumble!
Canadian banks are attractively valued at this time and I would want to buy more of them however not enough cash at this point. I don’t know how long this energy crisis will last. It has been raining hard, it will rain in the future and some companies will drown in the processes but stronger companies will survive, especially integrated ones such as Exxon, Chevron, Suncor etc.. and they will thrive when sun shines back. I will keep taking advantages on the current prices of the oil. Thanks for stopping by and try Korean BBQ when you get a chance! You will like it.
Great couple of months Be Smart Rich. I am liking how your charts are spreading out now as opposed to receiving large dividend sums in only a few months each year. IT sounds like you stumbled on the not so secret “secret” that all of us in the dividend community have discovered. The best part is that we make up a small slice of the broader investing community and they either ignore the secret or are still searching for it. So let’s take advantage of it while we can haha
By the way, that food looks amazing! Have a great weekend.
Bert, One of the Dividend Diplomats
Hi Bert, thanks for stopping by. I feel more empowered as I am more into this simple and easily executable dividend growth investing strategy. I am glad that the strategy is working out for both of us. Many people really fear the current volatility but we see it as opportunities. Only difference is timing. I have been maintaining very little cash but decided to build up more cash position which is challenging. The toughest part is holding cash. You gotta try Korean BBQ when you get a chance, you will like it!