December Dividends

Well, thats a wrap for 2016. Time to look at the December dividends. I knew this would be my best month ever for dividends and I was able to reach the yearly goals by the skin of my teeth.  December dividends are great because you get the cumulative effect from the whole year and see where you are at as far as goals. After looking at the totals, December didn’t disappoint. I set another record for dividends cracking the $900 monthly barrier for the first time. The expectation is that between dividend increases and new money added,  I will crack the $1000 barrier in 2017.  I am really seeing the fruits of my labor and it is motivating me to try and continue to ramp up the dividend income moving forward. The goal is and has always been to increase the monthly income to a point where I can use this instead of reducing the principal in retirement.

The increase from last year was 10.45%. Not exactly earth-shattering but considering the job loss, and the early year issues with moving money around, it was a very successful year.  I expect next year to handily beat that. If we look at the comparison to the last cycle (September Dividends), I beat it by a whopping 22%. This is due to new contributions, dividend increases, compounding, and a special dividend from MAIN (I love MAIN). I will be setting yearly 2017 goals in the 20% range (year-in-review & 2017 projections on the way).  Let’s move on to the month’s totals:

 

Totals for the month of December were as follows:

results:             Total:    $924.46    for December            $207.50  Month/YOY           28.94 %   Month/YOY

 

 

 

Dividend History

I want to also take a quick look at the dividend history and provide a sneak peek of 2017 targets. I have had some incredible years of increases over the last few years. As the totals get higher I expect the percentage increase to shrink as it gets much harder to maintain the high level of growth. I do think it is reasonable to expect 20-30% increases for the next few years if I stay disciplined and continue reinvesting the distributions. Overall, the plan is coming together and I am trying my best to remain patient and disciplined.

 

Conclusion – December Dividends

There you have it!  A successful 2016. The totals weren’t as high as I wanted but it was not unexpected as I moved money (missing out on crucial dividends), and had a 3 month job loss which cut into the growth of the income. I am expecting 2017 to have a much better result. There are no plans to reallocate the portfolio moving forward and now that I am working again, I can accelerate the contributions back to where they were the previous year. I contributed almost 15K less in 2016. That really hurt the share increases and the 401(k) balance. Overall, I am happy that I reached my goal for the year and continue to stay focused on the prize. Don’t be surprised to see an increase next year of well over 20%.  Thanks for stopping by !

-Brian