Tracking My Dividend Income over the Last Few Years

by Evan

The other day I realized that despite coming back month in and month out for the past few years to update my dividend income watch list I have never tracked (either on my site or personally) my dividend income and as important dividend income growth.  Luckily, fidelity has kept some of that information for me:

Dividend Income by MonthI mentioned a few months ago I was pretty disillusioned and disappointed with the amount of dividend income per year I was receiving despite the fact that it grew 50% percent from 2012 to 2014. Notwithstanding the slow, slow process this chart makes me feel a lot better.

Dividend Investing is Not Going to Create Wealth Overnight

At 2 to 4% annual payouts dividend investing is not going to create wealth overnight.  In fact, the “wealth” portion of the portfolio is likely to come from growth rather than dividend reinvestment for the foreseeable future.

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7 comments

John Schroeder March 20, 2014 - 7:29 am

I feel the same way! My dividend results look very similar to yours. Even though I plan to double my dividend income in 2014 compared to last year, I will still only be just over $1,000 for the year.

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Evan April 8, 2014 - 11:04 am

Feels like it is going to take a long time! I just keep reminding myself that this account isn’t for 33 year old Evan, it is for 45 year old Evan.

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Lazy Man and Money March 20, 2014 - 8:49 am

With all the ups and downs, wouldn’t be clearer to do a chart of a moving 3 and 6 month average. It would seem that with these averages, you might be able to make some educated projections going forward.

I’m looking at this chart and I find it difficult to see how things have improved over time except that I see more red than blue (very good), and a great start on the orange so far.

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writing2reality March 20, 2014 - 4:47 pm

Overall, it looks like 2014 is starting of quite well Evan! Hopefully things continue to show growth in the bigger months of March, June, September and December.

@LMAM – I do this exact thing with my passive income and record my moving 3-month average. Given the quarterly cycle for most dividends and the monthly inconsistencies of peer to peer lending interest income, I find this method smooths things out and helps me see the trend line of growth from the compounding that is occurring.

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Evan April 8, 2014 - 11:05 am

Just wrote about trying to project today:

https://www.myjourneytomillions.com/articles/one-calculate-projected-forward-12-month-dividends/

We can talk about it over there, but I don’t see the benefit other than a different way to look at data.

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Matt March 20, 2014 - 12:11 pm

This is exactly why I find it super-helpful to track things month-to-month and maintain some of my own metrics for my financial life. Sometime the day-to-day grind of life makes it really difficult to see progress as it’s happening, but when I step back and look at where I’ve come over a few months or years it is really helpful.

I like the comment about moving averages. I see what you’re doing with your chart above – I do a similar chart for myself. But a moving average might make the trends a little easier to spot.

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Evan April 8, 2014 - 11:06 am

“This is exactly why I find it super-helpful to track things month-to-month and maintain some of my own metrics for my financial life. Sometime the day-to-day grind of life makes it really difficult to see progress as it’s happening, but when I step back and look at where I’ve come over a few months or years it is really helpful.”

– Exactly why I do my monthly net worth posts!

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