One of my financial goals for 2014 is to increase my dividend income by continuing to invest in dividend paying stocks. In reality I have a mix right now of index ETFs and individual stocks that provide dividend income. In an effort to provide motivation for myself and to be accountable in terms of my stated goals, I plan on posting about my progress regularly (hopefully monthly, but we’ll see how that goes).
I’ll also include here updates on any side or passive income.
Well another month has come and gone. February was not an exciting month all around. Not only did we have to put up with freezing temperatures and snow, but it is also a lite month for dividend payments in my taxable account. I, for one, welcome March with open arms as spring will officially appear before it is through and with it the promise of warmer weather in the not too distant future.
Here is the breakdown of my investment and side income for the month of February:
|Dividend Income (taxable brokerage account)||
|Interest Income (Capital One 360 Savings Account)||
|Interest Income (Lending Club)||
|Total Investment and Side Income for February||
As a reminder, this update includes only dividend income from my taxable account and does not include any dividend income from my retirement accounts. My focus for this update is on the taxable account as I will be looking to access this account prior to a traditional retirement age.
February was a slow month for dividend payments. I did get the good news this month that three of my holdings announced dividend increases. Coke (KO) sweetened its dividend by 9%, Digital Realty Trust (DLR) increased its dividend by 6.4% and Waste Management (WM) will be increasing dividends by 2.7%. It’s nice to get a raise in my passive income for doing nothing but holding these stocks. The whole idea behind creating a dividend stock portfolio is to create an inflation protected income stream through dividends by choosing companies with a history of annually increasing pay outs. It’s pretty cool to see this theory in action in my own portfolio, even if it is currently on a small scale. I am, however, continuing to build my portfolio through continued investments. In February I added to my position in Coke and initiated a position in Chevron (CVX). Both companies are dividend champions with more than 25 years of increasing dividends and I have no doubt that they will continue to be solid holdings for many years to come. With these additions, my estimated annual dividends from my taxable account stands at $1,667. As I stated in my 2014 Financial Goals, I’m trying to earn $1,800 in dividends for 2014. With continued investments, I should achieve this goal.
Lending Club has been slow going. After initially funding the account in January, I have only about $1,000 invested in notes so far. It’s taking longer for me to find notes than I had anticipated, but I do plan on adding more funds here.
Churnin’ the Rewards Cards
On the rewards card front, we met the minimum spending requirements for the Barclaycard which gives us $400 to spend towards travel expenses. We’ve also signed up for the Chase Sapphire card. After meeting the minimum spending requirement of $3,000 in 3 months, we’ll get 40,000 bonus points. Our current plan is to use these points to pay for airfare to Orlando by transferring the points to Southwest airlines. A roundtrip ticket to Orlando would be about 8,000 points, so we’ll have plenty for the trip. If you are interested in learning more about the types of rewards cards available, check out Richmond Savers. Brad is a wealth of information and will even provide you with one-on-one consulting via email to find the best travel rewards card for you.
I finally got around to selling stuff on eBay! Now that I’ve gotten started I hope to unload a bunch of crap, um, I mean vintage items, from our home. It feels good to get rid of some things that we don’t need anymore and to make some extra cash too.
That’s it! Think spring, everyone. Think spring.
Did you make progress towards your financial goals in February?