It all began with .69 cents….
That was the first dividend payment we ever received as a married couple. We purchased one share of Exxon stock for $97 on February 5, 2015 and received our first dividend payment on March 10, 2015 for 69 cents…Whoo hoo! While this may seem like small potatoes to some, one must remember that every journey begins with the first step. Since then we’ve committed to growing our portfolio with dividend-paying stocks. Year to date we have received total dividend payments of close to $30.00 and our current portfolio is valued at $2,556
Mr. TOL used a great analogy in trying to show the value in dividend payments when one day he asked me what if once a month, every month, you opened your door and someone left you $12 on your doorstep for no reason. Would you look at that money as if it was nothing or small potatoes? Probably not! You would gladly accept and look forward to it. Let’s try another scenario…what if you did a small amount a work for someone, maybe cutting their grass or babysitting their kids. This job is a one-time event but you are continuously paid for that job the rest of your life. Just think about it…that little bit of work you did continues to pay you for the rest of your life! Not too bad a gig I’d say.
Well the same goes for investing. Investing in the stock market is not a free activity and you do have to put some amount of effort and work in to it such as researching what you’d like to buy and actually putting your money where your mouth is and making a manual or reoccurring purchase. However, for the amount of work being done you receiving a pretty stellar return that can potentially sustain you the rest of your life. Again, not too bad a gig I’d say!
Our goal is to generate approximately $1,500 in monthly dividend income, which would be enough to cover our monthly expenses after paying off our mortgage and consumer debt (more about that on the next blog post). While we may appear far from our goals, we are certainly closer now than we were when we received our first payment back in March. Every new journey begins with one-step or in our case the first trade.
What are you thinking about investing in? What are your dividend income goals?