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RSS2012 Passive Income: Dividends
Here is a summary of our 2012 dividend income. All this income comes from our taxable stock portfolio that is included in our monthly investment review. All retirement investment holdings are excluded from this dividend income summary.
This passive income is an important part of our financial freedom plan. Our current financial plan includes $6k in annual dividend income to support our living expenses so I prefer to be growing our dividend income on a trajectory that will will support this by the time we are targeting to be financially free.
| | Annual Dividends | ||||
| Investment | 2008 | 2009 | 2010 | 2011 | 2012 |
| Sold off Equity Holdings | $ 590.87 | $ 151.53 | $ 48.86 | $ 24.62 | $ - |
| Pepco | $ 22.67 | $ 22.68 | $ 22.68 | $ 22.68 | $ 22.68 |
| Argo International* | $ - | $ - | $ 10.84 | $ 14.63 | $ 11.01 |
| AT&T | $ 20.80 | $ 21.32 | $ 21.84 | $ 22.36 | $ 22.88 |
| Bank of | $ - | $ 1.00 | $ 6.65 | $ 20.15 | $ 32.20 |
| BP | $ - | $ 11.02 | $ 9.40 | $ 16.80 | $ 19.80 |
| Connoco | $ 44.78 | $ 106.56 | $ 156.58 | $ 211.65 | $231.49 |
| Chevron | $ 34.16 | $ 37.17 | $ 41.19 | $ 46.35 | $ 54.33 |
| Duke Energy | $ 100.98 | $ 111.83 | $ 122.30 | $ 131.90 | $ 141.22 |
| | $ 15.57 | $ 16.35 | $ 17.28 | $ 18.16 | $ 19.04 |
| ExxonMobil | $ 80.66 | $ 88.24 | $ 94.80 | $ 103.31 | $ 124.80 |
| | $ - | $ - | $ 260.00 | $ 450.08 | $ 512.66 |
| GE | $ 14.97 | $ 102.07 | $ 199.00 | $ 281.29 | $ 346.49 |
| Healthcare SPDR | $ - | $ 173.76 | $ 175.93 | $ 200.42 | $ 177.78 |
| IBM* | $ 555.74 | $ 520.33 | $ 394.42 | $ 241.02 | $ 234.69 |
| Medtronic | $ 53.74 | $ 68.70 | $ 76.82 | $ 84.97 | $ 115.38 |
| Merck | $ 212.83 | $ 222.68 | $ 229.84 | $ 229.84 | 254.04 |
| P&G | $ 46.94 | $ 53.52 | $ 60.49 | $ 68.03 | $ 75.58 |
| Pfizer | $ 972.66 | $ 255.60 | $ 247.48 | $ 114.96 | $ 126.48 |
| Phillips 66 | | | | | $ 19.35 |
| Spectra | $ 45.07 | $ 49.54 | $ 51.97 | $ 53.15 | $ 64.16 |
| Microsoft | $ 0.75 | $ 0.86 | $ 0.93 | $ 1.17 | $ 1.47 |
| Johnson & Johnson | $ 16.13 | $ 17.88 | $ 20.21 | $ 65.09 | $ 65.51 |
| Union Bancshares | $ - | $ 6.00 | $ 25.21 | $ 39.30 | $ 56.76 |
| VXF | $ 66.84 | $ 55.31 | $ 62.46 | $ 1.75 | $ 184.06 |
| VWO | $ 108.32 | $ 52.62 | $ 79.73 | $ 99.23 | $ 109.93 |
| VTI | $ 96.93 | $ 337.00 | $ 370.01 | $ 419.20 | $ 555.85 |
| KBE ETF | $ 92.58 | $ 208.17 | $ 68.17 | $ 198.78 | $ 146.81 |
| Total | $3,293.99 | $ 2,691.74 | $2,875.09 | $3,180.89 | $ 3,726.45 |
| Growth Rate | | -18.28% | 6.81% | 10.64% | 17.15% |
Our taxable dividend income rose by 17% in 2012. Its not the 40%+ growth rates in dividend income we saw before the last recession, but our portfolio is significantly larger now and we are no longer increasing the portfolio size as rapidly as we were when our net worth was smaller.
If you look at our taxable stock portfolio yield - our portfolio was valued at $191,009 at the end of 2012, so we had an a 1.95% dividend yield on our overall taxable portfolio (including non-dividend paying investments).
If we assume an average 10% growth rate over the next 8 years we can see in the table below we have a reasonable margin of safety that suggests we are on target with our financial freedom plan.
If we want to increase the amount of dividend income we utilize when we become financially free ~2021 to about $10k/yr we are currently about $479/yr short. All in all we are in good shape regarding our dividend income.
by 2million on
01/27/13
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