July statements are here! And, the news is all good!
I marvel every month as I plug in the actual dividend income numbers and calculate the progress. As I have repeatedly stated, all our concentrated holdings have raised their dividend to us over the past 12 months. The average dividend increase among these has been 18%, which, by itself, would result in a doubling of our portfolio dividend income in as little as only 4 years.
But, it’s better than even that! As I record and measure our portfolio dividend income growth from those safe-dividend growers that we have highly concentrated upon, and of which there are now only 18, as I sold out of our position in QCOM last week; I discover that our July income increased by 75.44% over July of last year! It’s up 7.15% over last April. Up 15.53% over January of this year, and has grown by 61.1% over October of last year.
How does this happen?
I explain it every month, and I have already accounted for a portion of that growth above, but there’s one more very important aspect to the growing of a portfolio dividend income.
It’s great that these safe-dividend growers raise at a rate in the teens that doubles our income in under 5 years’ time, but it is the re-investment of our cash dividend income, and the addition of still more cash, as we are able, to our money fund that is also a key to rapid portfolio dividend income growth.
The cash, by itself, means nothing. It is when I am able to detect a low-risk market entry opportunity, and I invest the accumulating cash into still more shares of these concentrated holdings, that the real ‘magic’ happens! I acquired more shares in August and, especially, in October of last year. These are now generating dividend income for us, and a large reason for the seemingly outsized portfolio dividend income growth of the past year.
We are right at 25% of our actual first-year retirement income goal with our latest statement, and working on the second doubling of our portfolio dividend income, so that we may get 1/2 of the way to our first-year retirement income goal. How fast can we make that happen? I don’t know, but it will happen, because we’re in charge and we’re making it happen!
We are about 10.8% in cash right now, and I’m about to send another check to brokerage, as I want sufficient ‘dry powder’ available for when the next great stock-buying opportunity should arise. I see that as likely to happen before this year ends, and I want as much cash ready for the occasion as I can! What are you going to do?
Here’s to your successful investing!
Harold F Crowell