Twitter
Email
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
|
Tweet
| Add to del.icio.us
| Comments (1)
Related in Financial Goals:
Financial Freedom Plan - 2015 Update (Apr 30, 2015) I finally sat down to get an updated view of our progress towards our financial freedom plan that I laid out a few years go in terms of asset allocation. Some notes: Our asset allocation to fixed income (interest) will...
Financial Freedom Plan (Aug 25, 2013) Almost two years ago I laid out a plan for the net asset allocation I thought we needed for our financial freedom plan. It was a rough guide for asset allocation that I believe could generate enough income to cover...
Can We Coast to Our Financial Goals? (Nov 12, 2012) As I continue to reflect on getting closeer to reaching our millionaire net worth milestone, I am becoming more optimistic and excited about what the future holds. I've pondered whether we could just tread water at this point and still...
Comments (1)
Why do you own so many stocks? I have found that I personally do much better when I stick to the broad-market ETFs. For example, I think that the risk-adjusted returns of the Nasdaq-100 ETF (QQQ) are better, accounting for risk, than those of any individual stocks comprising the index. Also, the dividend yield on the Nasdaq-100 has risen substantially in recent years an is now close to 1.20%, which is decent, considering the more than 200% price increase of the Nasdaq-100 Index since early 2009.
Posted by Jim | November 4, 2013 12:41 AM