Well, I just have to highlight this. Recently, I provided my Dividend Income Report for June. In that report, I noted that my forward annual dividend was $1033.67. That was the first time it crossed the $1000 mark. That’s a BIG accomplishment for this small investor. Such a big deal in fact that I decided to devote recognition of that milestone to its own blog post. Let’s take a closer look as to why this milestone matters.
The Past
I started this blog in November 2016. But, I didn’t really start blogging in earnest until March or so of 2017. Still, when I started, my forward annual dividend income was a whopping $30.13!!! That number started it all. So much so that it represents the logo of the blog.
But $30.13 is a small number. When I started, a friend of mine didn’t think anyone would be interested in a blog with such small numbers. I even tried explaining the concept of dividend growth investing to my mom. But, I could tell I wasn’t winning her over when I showed her the pennies and dollars I was making on the companies I owned. Of course, I knew the number would rise, but wasn’t sure how long it would take.
Well, almost a year later, in November 2017, I wrote a blog post entitled, $600 Annual Dividend Income Milestone Reached. $600 in a year isn’t enough to make me retire, but it’s certainly much higher than the $30.13 a year I started this blog with.
The Present
Now, I’ve crossed the 4-digit mark and currently have over $1000 in forward annual dividends. I’m super excited. All I did was set up my accounts once, where money gets moved from my checking account to my brokerage. Then, with the power of automation, I invest in dividend stocks on a monthly basis.
If the price is high, I invest. If the price is low, I invest. I do so on a set schedule. In other words, I practice dollar cost averaging. I actually don’t care what the market is doing on a day-to-day basis because I’m invested for the long term.
Sometimes I might get a bonus from work. I usually put some of that money into my dividend portfolio. The same thing goes with any tax refund I get. I always try to invest when I can, except the occasional spending spree that causes me to be broke.
But, I’m very happy about crossing this threshold. No, I still can’t retire. But, I’ve come a very long way from making $30.13 a year.
The Future
As impressive as this milestone is, I’m still only at the very beginning of my journey towards FIRE or Financial Independence, Early Retirement. I learned about that concept this year and wrote about it in January in my post entitled, Savings Rate: The Secret To Early Retirement.
I think it’s important to have mini goals along the way. Retirement for me is still about 15 years away. So, rather than having one big goal of retirement, I’ll have small goals I to try to meet that will help get me to my destination. As I work towards achieving those goals, I will take a minute, every now and again, to recognize those milestones I reach along the way.
In the short term, my next milestone is $1500. I figure having a milestone every $500 is not too bad. Eventually, when the dividend snowball starts to pick up, I will up to the milestones to $1000 increment. Although the milestones will be recognized at the $500 mark, I set the meter to $2000 as my next target to achieve.
Currently, the portfolio is around $30,000. I can’t wait until it reaches $50,000 and then crosses the $100,000 mark. I don’t usually blog about the size of the portfolio, only the size of the dividends. But those are also going to be milestones I blog about.
Conclusion
There you have it. $1000 in forward annual dividends. That’s enough money to buy me a new laptop. But, no frivolous spending any time soon. I’m going to let the power of compounding take effect.
The great thing about the dividend growth strategy is that it’s a simple but effective strategy for beginning investors such as myself. I crossed an important milestone. Now, onto the next!
Have you reached any milestone recently? What are your thoughts? Let me know by commenting below.
Congrats! This is awesome. I also like the mention of continuing to invest on a schedule. DCA or any other form of disciplined approach is great. You’ll continue to see momentum. Just remember – as you mentioned – it does take time. Congrats again, Glen. – Mike
Mike at Balanced Dividends recently posted…Balanced Dividends (Semi-) Automatic Ecosystem: 7 Part Overview
Thanks Mike. I’m a huge fan of DCA. It’s a great strategy for the small investor. Too many people choose not to invest because they think a large sum of money is required to start investing. That used to be the case but in this day and age, no longer. Investors can choose virtually any amount today and contribute that to an investment on a regular basis and thereby benefit from dollar cost averaging.
Grats on reaching the $1.000 milestone! Reaching milestones like this is rewarding 🙂
I Want Dividend recently posted…Mid-year review 2018
Appreciate it IWD. It helps to keep us going on the long road that is dividend growth investing.
Great job DP. You have come a long way in a short time. Investing on a regular basis regardless of what the market is doing is a great strategy as you build this small dividend stock portfolio into a big one. Keep it up. Tom
Tom @ Dividends Diversify recently posted…Perfectly Passive Income
Thanks Tom. That’s the plan. I hope to maintain a certain minimum level of contributions to my portfolio and raise it every year (just like the dividend companies I invest in who raises their dividends every year). By the time I get to retire, I hope to have a large enough portfolio that will at worst, supplement my income, but at best, sufficiently cover all my living expenses.
This milestone indeed deserves it’s own post. It’s no small feat to go from 30 to a 1000 in annual forward income! Congratulations my friend!
For me with some recent purchases (post coming) I probably crossed the $500 mark post taxes. Which means I’m halfway towards your current milestone 🙂
Mr. Robot recently posted…June 2018 Dividend Report
Fair enough Mr. Robot, but I hope you write about it. I think it’s important to recognize those milestones along the way and I can’t wait for you to cross the $500 mark!!!
Fantastic work mate.
I am sitting on around 750 or so forward income so I’m not too far off the 1000 mark either. Well done to you. Keep up the great work. At this rate I won’t catch you but a bit of friendly competition never hurt anyone right?
Buy, Hold Long recently posted…And Your Winner Is…..
Oh I love friendly competitions and I’m all for it. 750 is not too far from 1000 so I know see why you can’t catch me. I know you have a lot going on right now, but when things have settled, I’m sure you’ll pick up steam and that might be a time when I have to slow down, so you never know. But, once you get to the 1000 mark, it’s going to be sweet. Being in the 4-digit land is awesome.
Congrats! It is amazing what can be done in such a short time. Like you said $30 doesn’t seem like much for the entire year, but 1k is pretty substantial. And it only goes up from there. Your portfolio has basically caught up to me. Probably by year end you will surpass me. Especially since I can’t really put more capital into it right now because I need to save up for other big capital expenses like tuition. Keep the debt down, you know. Congrats again on your next big accomplishment! The 1500 and 2000 marks will come faster than you know it.
Thanks Daze. I’m sure you’ll be able to start putting more capital in your portfolio once your other big expenses are taken care of. We are in it for the long haul, but there might be periods of times when we have to cut back a bit. I’m in that period right now. Because I’m moving and also have a lot going on, I have to cut back on other aspects of my finances before going back to full steam ahead a couple of months from now.
Congratulations! I haven’t calculated my forward dividends in years, I didn’t want to count my my chickens before they hatched. My dividend goal is $1,000/mo of income – but I am probably YEARS away from it.
Evan @ MyJourneytoMillions recently posted…July 2018 Dividend Watch List and Purchase
Evan I understand the point about counting chickens before they hatch. I initially felt the same way since the forward dividends is an amount I have not actually received, just what is projected. The good news is that the projection is readily quantifiable and not based on empty assumptions or anything like that. In any case, it’s going to be exciting once you start getting $1000 per month. It’s definitely years away for me as well, but it’s a good goal to have.
Congratulations are definitely in order for that accomplishment, as you have rocketed from $30 to over $1,000 in a short period of time! You’re doing great and demonstrating how much an impact it can have to remain consistent in good times and bad times.
Those new milestones will be in your reach before you know it!
DivvyDad recently posted…Zero Day Challenge
Thanks DivvyDad and you’re right. It’s important to remain consistent. I view contributions to my dividend portfolio as a means to pay myself first. I look at it as a mandatory expense and just as important as paying rent. That way, I maintain that consistency. I look forward to crossing that $1500 threshold.
Congrats on breaking the $1K milestone!!!! 😀 That is super exciting! Nice job going from $30 to $1000! Amazing how large the snowball can grow in just a little bit of time. I just cross the $9K milestone with $10K being the next target. I am hoping to break that milestone by the end of next year. This is very exciting. Keep up the great work DP! 🙂
My Dividend Dynasty recently posted…One Year Blogiversary and Recent Buys – AT&T (T) and General Mills (GIS)
Oh MDD that’s super exciting. Congrats on crossing the 9k mark! But, as good as that is, it’s nothing compared to getting to the 5-digit mark!!! I hope you reach your goal sooner than you even expect, but in any case, the end of next year is not that far away.
Congrats, way to go. 1k$ mark is a thing 😉 im struguling to reach 500€ but if all will go well next year should be reached, this year 400€ was a milestone. Babysteps to the moon, wonder whose quate was that 🙂
p2035 recently posted…2018 Q2 Budget
haha – way to go p2035. Just keep putting one step in front of the other, and you’ll get there.
DP –
Hell yah and cheers to the next $1,000 going forward!
-Lanny
Thanks Lanny. Can’t wait!
Hey DP. Congrats on reaching $1K in forward dividend income. You’ve done some amazing work in a short period of time. This thing is gonna grow to the sky!
Engineering Dividends recently posted…Dividend Poem for my 1-Year Blogiversary!
I just keep hoping I can not just continue to make the minimum contributions to the portfolio, but increase those contributions over time. But, I can’t wait to see what the portfolio looks like a year or two from now.
Congrats on reaching this milestone DP!! How exciting is it that you are in the four figure club and are now starting the next investing milestone in the face. How freaking exciting !! Keep up the great work.
Bert
Dividend Diplomats recently posted…June Dividend Income from YOU the Bloggers!
Very exciting Bert. I am moving up in the DGI world, so to speak.
Good job man keep up the good work. Slow and steady will win the race. I recently hit a milestone myself, more of a net worth milestone. Now I’m trying to focus more on my blog milestone and hoping to accomplish that milestone.
the expat investor recently posted…2018 Mid Year updates
Congrats on hitting you net worth milestone and good luck on reaching your blog milestone expat. I’ll be stopping by to check out your 2018 mid-year updates soon.