This will be my very first update on my dividend account. It’s still very new and small but I’m thrilled to say that i’ve made $7.66 on an account that started with only $1,093.6. Taken at face value, numbers like that don’t sound like anything nowadays because if you do the math it comes out to be around .007%. Regardless, that coupled with the market gains of all my shares makes for a total gain to be $110.60 at the time of this post there will be a 10.04% increase on my account.

I’m not using any of my dividends as income, instead I’m reinvesting it back into those stocks using what is called DRIP (dividend reinvestment plan). This makes it so that whatever money is paid out to me will be used to buy more of said stock. This is the most powerful way that I’ve seen to invest. Essentially, these companies are paying you to increase your position in their stocks. This in turn means that the next time they pay out you will receive more income and the cycle will continue as long as you have DRIP active.  

I’m still very much on the young side so I plan to take full advantage of DRIP reinvesting and dollar cost averaging as much as possible. This will put me at a greater advantage later on down the road when I start to pull money for my account for retirement.  

Predictable dividend income investing will make all the difference. let’s imagine you’re able to invest $500 per month into passive dividend paying stocks yielding 5%, which is a reasonable amount. With those numbers, you’d end up investing $6,000 per year which would create $300 per year in dividend income. I don’t know about you but making an extra $300 per year for investing what you would have already, I would have to say, is nothing to laugh at. That’s not even including the market gains that you are also receiving on those stocks.  

Concluding Thoughts  

This is really just the start for this account, it has a long way to go. The plan moving forward is going to be add $500 per month into the account hoping to reach the first milestone of $150 in income for 2020. So, receiving $7.66 in income in just three months in an account that I haven’t added to because of uncertain times is a really good start in my eyes. 

As always, have a great day and keep learning and moving towards your goals, never stop pushing! 

Day 4