We are into our last 2 months before the year ends so any form of cash inflow will be most welcoming. For myself, it will be in the form of dividend income as Santa comes in early to deliver my Christmas present.
You know all those years back you were thinking what are those heavy things Santa was carrying at the back of his trolley that never seems to diminish and the answer is really because he has unlimited presents to give out till the end of time. And I am using this analogy because dividend income has worked for me almost the same throughout my investing journey.
I have received quarters after quarters, and years of countless dividends since I started investing back in 2010 and the best thing is it will keep supplying me with income till I am no longer around.
Additional dollars of these dividend income is then reinvested back into dividend growth stocks which will give me even more dividend income or cashflow as I prefer to call them. They can alternatively be used to reward yourself, pay your expenses, fund your travel or anything else you wish with the money.
November is not traditionally my strongest month as most companies tend to pay out dividends in the month of May (Check out here) and Aug (Check out here), at least for my case. Those were some monstrous income I received in May and Aug and the rest are usually split between November, December, January and February. This month dividend income will come in at $2,757.
I can't stress this enough but as human being on this planet, what we need in our everyday lives is cashflow, not asset. Of course, without an asset you can't have your cashflow but I'm focusing on the former rather than the latter. You need cashflow when you buy your groceries or when you travel or eat outside. This is the very same reason why when market panics, I am glorified because it gives me an opportunity to increase my asset base at a cheaper price that could give me more dividend income. Perfect.
Dividend investing will continue to play an important strategy in my plans as I will shy away from the corporate 9 - 6 life when the right time comes. I hope these updates will provide an inspiration for those who is just starting out and you can easily see the rising tangible benefits month after month as you began to invest more in quality stocks.
| Counters | Dividends (S$) | Payable Date |
|---|---|---|
| FraserCenterPoint Trust (FCT) | 835.00 | 28-Nov-14 |
| FraserCommercial Trust (FCOT) | 244.00 | 28-Nov-14 |
| China Merchant Pacific | 875.00 | 7-Nov-14 |
| Mapletree Greater Comm | 632.00 | 24-Nov-14 |
| Ascendas Hospitality Trust | 171.00 | 12-Dec-14 |
| Total | 2,757.00 |
What about you? Does Santa has your present for Christmas :D ?
