- The dividend income fund is projected to earn $628.27 annually (Up $19.93 since the October projection).
- Income is up $117.42 since last December’s projection.
- A 9.8% ENB dividend raise pushed dividend income higher in December.
Even if I fail to save another dime, the portfolio will generate a minimum of $628.27 worth of dividend income in 2020. And I don’t have to do anything to receive that money.
This represents an increase of $19.93 since September’s dividend income projection, and it will add up to an average of $52 per month deposited directly into my brokerage accounts.
Most of the increase was a result of a recent dividend raise by Enbridge, as ENB raised its quarterly dividend by 9.8%. Since I hold 70 shares of ENB, this resulted in $20.16 worth of extra income annually. Every little bit helps.
Of course, the reason dividend income only increased by $19.93 since the previous report is because Sir Royalty Income Fund decreased its dividend. This led to a few valuable lessons being learned about dividend investing in 2019—only buy the best businesses, and only focus on companies that increase their dividend payments annually.
In addition to the ENB raise, I purchased MO and more FTS, RY, and T over the past few months.
The Final Dividend Income Projection of 2019 – $628.27
2019 was a year of change and new challenges.
At the beginning of 2019, I set my financial goals for the year. One of the main goals was to grow the dividend business to at least $800 annually. Obviously, I did not meet my goal to grow dividend income to $800 annually.
I would’ve have easily surpassed this goal if I maintained the pace I was on from 2017 to 2018. However, 2019 was a year of change and new challenges.
I moved, switched jobs, and I’m even dating someone new now… (can I say that?) lol.
In spite of all these changes, I was still able to increase dividend income and save money during the year. Although it was less than the $290 increase I achieved in 2018, I still managed to grow dividend income by $108.64 annually in 2019.
I also have a lot more time on my hands now that I’m working a part-time job.
$35.56 was from Dividend Raises
One accomplishment I am particularly proud of is that income from dividend raises added $35.56 to my income.
By selecting high quality businesses that increase their dividend payments annually, I was able to add an extra $35.56 to my pocket in 2020.
Furthermore, this is up $8.39 over last year, as $27.17 was generated from dividend raises. This is a good indicator that I am adding to the right businesses and moving in the right direction.
$628.27 is $25,130.80 in 40 years
One of my favourite ways to view the growth of my annual dividend income is over long periods of time.
Because if you stretch it out over 40 years, even small raises make a significant difference.
For example, $628.27 annually will add up to $25,130.80 over a 40 year time period. That’s 25 grand for doing absolutely nothing! Plus that’s without factoring in dividend raises or adding capital to the portfolio.
It’s pretty clear that dividend growth investing is a wealth building machine if one stays the course. But that’s the problem—most don’t have the patience to stay the course.
Related Post: An Investment Strategy to Build a Cash Flow Machine
$371.73 to go before I earn $1,000 annually
Ideally, my dividend growth portfolio would already generate 4 figures annually. But as mentioned above, I accepted a part-time job and went through many changes this past year. Life happens.
Admittedly, the pace of saving has slowed down and it’s more difficult to be motivated when you’re so happy with your current lifestyle. I work a lot less now and have a lot more time. Sometimes I even wonder why I’m still pursuing financial independence when I only work 3 days per week. The extra time off is unbelievable.
But then I remember that my ultimate challenge is building a passive income machine that supports my lifestyle completely. At least blogging and dividend investing will already combine to generate a low 4 figure business.
Final Dividend Income Projection: How I’ll generate $628.27 annually
I earn $628.27 annually by holding 14 different dividend stocks on the U.S. and Canadian markets.
The funds are deposited into my brokerage accounts quarterly by most companies. However, I do own several monthly paying stocks.
For the most part, I have the Canadian stocks I wish to hold forever, but I still need to increase my U.S. positions. The two largest Canadian positions are ENB and RY, while the rest of the positions are in the $1,000 range for diversification. To check out my list of positions, tune into the monthly dividend income updates. I began sharing position details over the last few months.
Concluding Thoughts – Final Dividend Income Projection for 2019
Although I have put myself in a great position for the final dividend income projection, my plan is not without risks. The biggest risk I will face in 2020 is my part-time job hours.
This is because I may need to support myself briefly if I’m not earning enough.
If I receive more than 20 hours per week, I earn as much or more than I did while I was working 37.5 hours per week. However, if I work 15 or less hours, I may need to supplement my income with dividends, blog income, or even by withdrawing from my emergency fund.
In the long run, though, I believe this risk is worthwhile, because I’m still building a pension and will earn more than ever once my seniority increases. This is why I am fine with the slow FI lifestyle for the time being, and why I’m ok if my dividend growth slows for a year or so.
Of course, I am aware of the importance of compound interest. But if I already have more time now and the ability to do what I want, I may have already achieved the end game I’m looking for. After all, working 3 days per week is also an optimal FI solution.
This post has been added to the dividend income projection’s page to document the progress to FI through dividend investing. Thank you for reading this year’s final dividend income projection.
I am not a licensed investment or tax adviser. All opinions are my own. This post contains advertisements by Google Adsense. This post also contains internal links, affiliate links, and links to RTC social media accounts.
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Dividend Income Update # 30 | $481.39 in 2019
