I said it in November, and I need to repeat it for December, this was yet another record month in terms of dividend income for the Niche Fund. I received dividends from four different holdings (ENB, XOM, EMR, KO). The amount is rather small, however with each month of additional purchases, monthly dividend payments will contribute a greater amount towards the next purchase. This is where the snowball starts having an effect. With dividends reinvested, growth will start to accelerate until a point where more and more shares can be purchased each month. I plan on managing the dividend payments myself until some of my foundation holdings are large enough to purchase full shares as part of a DRIP.
It is very encouraging to see the money I have invested in equities generating some passive income. The holdings in my Niche Fund pay quarterly dividends so some months will have more income reflected than others. My Dividend Income page has a calendar showing when I expect to receive dividends from each of my holdings.
December Dividends Received
ENB – $1.40
XOM – $4.95
EMR – $4.28
KO – $1.98
Total for December 2015: $12.61
With this month’s dividends, I achieved my passive income goal of receiving $20 of dividend income by Dec 31, 2015! My DGI journey began in July 2015 and is off to a modest start. I aim to save a portion of my income and devote it towards a monthly stock purchase. I have a number of large purchases coming up in 2016 so the monthly amount for my purchases is lower than what I plan on spending in future years.
It is truly addicting to find the best possible companies each month and determine whether they meet my investment criteria. Of course the start of any long journey is slow going. I appreciate you taking time to stop by and look forward to chatting more with fellow DGI investors on their strategies and objectives.
If you’re new to my site, my plan is to buy and hold high-quality dividend paying stocks in order to enjoy the flexibility offered by the passive income stream generated by regular dividend payments to shareholders. In the long run, these dividends will start to grow on their own through dividend hikes. I look forward to posting the next dividend income update at the end of January.