• 201.39% YOY growth was achieved compared to October 2017 ($36.15 more).

• $54.10 was received in October 2018 (a new dividend income record for 1 month).

• $314.18 in total dividend income has been received in 2018 (Up 440% over 2017).

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Ola, Dividend Investors! I hope the markets have been treating you well.

Another month has passed which means it’s time to report how much dividend income was earned.

To jump right in, RTC is excited to announce that a new dividend income record of $54.10 was achieved in October 2018.

It’s the first time that more than $50 in one month was reached, and it required 17 dividend income updates to get there. But now that this milestone has been accomplished, dividend income investing is beginning to feel like a valid source of income.

I mean, $314.18 this year and earning over $50 in one month is not exactly chump change anymore. It’s not enough to afford an elaborate vacation yet, but who wouldn’t be happy to receive a $50 gift card per month? And who wouldn’t want $300 annually for doing nothing?

Better yet, dividend income is continuing to increase. Check out the numbers below for more detail.

[bctt tweet=”Dividend Income Update # 17 | New Dividend Income Record! | October 2018″ username=”reversethecrush”]

Key numbers | Dividend Income Update 17 – October 2018

Dividend income earned in October 2018: $54.10

Total dividend Income earned in 2018: $314.18 (Up $256.04 | 440% increase over 2017)

Total dividend income in October 2017: $17.95

YOY growth compared to October 2017: 201.39% increase (Up $36.15)

Increase over last quarter (July 2018): 15% (Up $7.37)

How many stocks paid dividends in October 2018: 6

Commentary

Dividend income is still growing even with the market’s challenging environment as of late.

There was a slight setback to forward dividend income this month when one holding cut its dividend. But RTC was prepared and acted quickly, as dividend cuts are not taken lightly. Not only is it a representation of poor management, it’s a sign that the business is not performing well enough to meet cash flow commitments.

As such, the company that cut their dividend was cut out of the portfolio and reallocated to higher quality positions. And thanks to the recent volatility in the market, RTC was able to acquire higher quality positions for great value.

More importantly, though, forward dividend income was kept above the level that was reported recently ($460.44 annually). It will be slightly more challenging to reach $500 in forward dividend income now. But overall, this dividend cut is a blessing in disguise because the core positions will become larger.

As for the results, surpassing $50 in dividend income during 1 month is an important milestone. It’s more than half way to $100 per month, which makes it feel like an average of 3 digits per month is within reach. It’s motivating to know that. Once $100 per month in dividend is reached, it’s as if you have a supplemental income stream to help you save more money. Even if you can’t afford to save money from time to time, you have a cash flow machine providing capital to allocate.

Concluding Thoughts

To sum up this month’s concluding thoughts, the RTC Portfolio Manager agreed to release the following statement:

Business performance speaks for itself. 15% quarter over quarter growth—201% year over year growth—this is progress that any business would envy.

Then he provided the following closing statements:

A meaningful $54.10 was earned in October 2018. Of course, the income has already been reinvested because that’s how a dividend growth business should be run.

Approximately $40 of the dividend income was dripped, while the other $14 was reinvested along with cash from savings.

The team is looking forward to building on the passive income foundation that has been built over the past 2 years. The 3rd year is setting up to be something truly special. As long as we avoid any panic selling during the next market correction (laughing), the portfolio will actually start to look like a small personal business in 2019. And to be honest, a small personal business is exactly what I’m looking for.

Questions for Investors: How was your dividend income in October 2018? Have you ever experienced any dividend cuts?