Well as promised earlier in my time as a commodity post I said I would begin to share my own dividend income results. So without delay below you will see a graph displaying on a monthly basis my dividend income for each month. Visually my goal is to show the growth that can happen with dividend stocks.
A person’s dividend income can grow a couple ways :
1) Reinvesting the dividends and buying shares the next dividend will increase as you have more shares than the previous dividend.
2) If the company raises it’s dividend shareholder’s receive more income on the same number of shares as the previous dividend.
The first method is going to require some action on your part as you will need to instruct the bank you use to house your investment accounts that you want the dividends reinvested. Some will have the ability to due this electronically, some may require an email or a phone call. What’s important is that you make that connection and get the ball rolling, as then whole shares will be bought by the dividend with the change left over being deposited into the cash portion of your account. The second method requires nothing on your part aside from picking good stable companies that have a habit of raising their dividends.
In my portfolio of dividend stocks I hold quarterly and monthly dividend paying companies. You will notice on the quarterly paying months the income is higher than months with just the monthly paying companies. But what should take place is each respective month should show an increase versus month before. This is one of the benefits of dividend growth and why it is an important foundation for creating wealth.
Without any more delay below is my graph. I will update this monthly, enjoy and I welcome any comments or questions.