Dividends, Dividends, Dividends — Putting My Earnings Into Perspective
I started earning dividend income on one of my brokerage accounts back in May. Here’s a look at how it was three months back.
Before this all started I was earning $0 per month, now I am earning at least $6 per month! $6 might not seem like a lot in today’s money but for me that is a free movie night or a meal from a decent restaurant — I can do one of those each month without taking money from my income stream!
The best part of this is that it can only go up from here as I continue to put in money into this dividend growth taxable account per month. Since I won’t be taking any money from this account, that $6 per month will be used to buy even more stocks!
I am currently putting in around $500 per month in this account and from the looks of it, $500 earns me around $1.50 per month or around $4.50 per quarter. So, if I continue doing this then I will be going into double digits by the end of this year!
And to make things even better, I do believe that I will be earning money every month now since that was one of my early goals — to earn money each month instead of every quarter. Which is why I bought stocks that will not overlap one another (at least in the early days of this account). This makes it a joy to track so if you’re just starting out I recommend that you do this! It might not be ideal when it comes to maximizing profits but once you’re getting money each month the happier you’ll be!
One thing I’d like to add is that since I am using Robinhood for this account, I don’t have to pay any commission fees! One disadvantage though is that I cannot DRIP and I can only buy a full stock instead of a partial one. I don’t see that as a problem though because as I put in more money the income from the dividends will keep increasing until I can buy one or more stocks in the future! I would also like to invest my earnings in a different stock each time. Hooray for diversified portfolios!