All views expressed here are my own. All links within this post are links to other posts on this blog. Please refer to the disclosure for additional information.
-
$15.19 of dividend income was received in May 2018.
-
$121.82 of dividend income has been received in 2018 in total (Up 109.53% over 2017).
-
The June dividend income update will be the 1 year anniversary for publishing dividend income updates.
-
RTC provides guidance on the $425 dividend income target for 2018.
Although May did not produce a record month for dividend income, the RTC team is proud of the performance. Dividend income grew by over 43% and 3 more income producing assets were added since the last quarter
The total income received in May was $15.19. Of course, $15 won’t get you very far nowadays. But it’s satisfying knowing that this month would’ve been a top two month last year. This month’s income and cash that was waiting to be invested were reinvested back into core portfolio positions on May 5, 2018.
As stated in the financial goals for 2018, the target dividend income was originally set at $425. Seeing that the portfolio is on pace to generate only $321.82, the RTC team has decided to provide guidance for the remainder of the year.
More is discussed below in the report for May
[bctt tweet=”Dividend Income Update # 12 – May 2018 | RTC Provides Guidance” username=”reversethecrush”]
Dividend Income Update # 12 – May 2018
Total dividend income earned for May 2018: $15.19
Total dividend Income earned in 2018: $121.82 (Up $63.68 | 109.53% increase over 2017)
How many businesses paid dividends in May: 7
Analysis of the Results
In comparison to the other two months in the quarter, May remains the lowest income generating month. However, considering that only $10.86 was earned last quarter, earning $15.19 is a solid improvement.
Furthermore, cash was allocated to acquire additional shares of a core position that pays during this period on May 5, 2018. Rest assured that the results for August is already projected to be higher than the $15.19 reported here.
The primary reason for the 43% QOQ growth increase is because 3 monthly paying assets were added. The portfolio will begin to become quite large over the next 5 to 10 years—the process of diversification begins now.
RTC Provides Guidance
The original target of $425 in passive dividend income was a little bit of wishful thinking, if you really want to know the truth.
Based on the current pace and average growth of the projections, it’s more likely that the portfolio will end up generating $390 instead of $425.
With that said, the forward projection target of $650 annually still remains the same. The portfolio will generate $400 by the end of June, so a $20 per month pace projects for $520.00 in annual dividend income. Plus, another leap forward of about $100 is anticipated in the last few months of the year.
Moreover, if you divide the $400 expected in half (there’s only half the year remaining), and add the current dividend income, you arrive at $321.82. That’s how I arrived at the number in the introduction. Of course, $20 per month is being added, but time will continue to reduce the amount of payments that can be received.
Thus, guidance is set at $385 in annual dividend income instead of $425. But don’t be surprised if the RTC portfolio manager finds a way to surpass the new target.
Concluding Thoughts
After 12 months of reporting dividend income, the portfolio has now returned $179.96 worth of dividend income back into my account. That’s easily enough to cover my Apple music subscription. At least dividend income already covers one of my bills! Of Course, all dividend income was reinvested back into additional shares.
To sum up the dividend income update for May, $15.19 in annual dividend income was received. The RTC portfolio has now generated $121.82 in dividends from January to May 2018. Finally, the new target is to receive $385 this year. But the forward annual income projection for $650 remains intact.
Ultimately, the steps outlined are part of a larger plan to generate $1,000 in annual income by the end of 2019.
I look forward to sharing the first report that includes a year over year growth rate in June.
An Update on Social Media and E-mail Subscriber Growth – May 2018
