June was a very slow month. But two things happened that were noteworthy. Here they are:
Bought One Share of XOM
I only added about one share of Exxon Mobile (XOM). It was a slow month because I got back into credit card debt. It’s only a small amount (~$1500), but one of my top priorities is to get rid of that credit card debt as soon as I can. My disposable income doesn’t really allow me to tackle both in a meaningful way. So, right now I’m focused on reducing the debt. I won’t be reducing the debt exclusively though because I want to keep the momentum going with investing.
Although I only bought one share of XOM, I also added $3.00 to my annual dividend income. I know it’s miniscule right now, but I’m investing for the long haul. Patience is a virtue. I suspect that July is going to be a tough month, but hopefully, I can also increase my shares in some of the other stocks in my portfolio.
At my current rate of investing, I should definitely reach about $70 in annual dividends, which is short of my $100 goal. However, I am not giving up. If I can take care of this credit card debt sooner rather than later, then I can hopefully contribute more to investing in my dividend portfolio.
To paraphrase Dave Ramsey, Murphy (aka Murphy’s law) is definitely taking up residence in my home. I’m trying to kick him out but it’s tough. It seems as though every time I might be able to save a little more, or invest a little more, an emergency happens which causes me to dig a deeper hole. When I’m in this financial fight to win, so I’m definitely fighting towards a more secure future.
It is incredibly hard. As you know, I’m just really starting this blog. The beginning stages is all about mindset and determination. That willpower and drive to succeed is what is keeping me going. $3 extra per year, by itself, isn’t going to make a difference. But, over time, $3, will turn into $6, and then $18, and will continue to grow exponentially. All thanks to the powerful principle known as compounding.
Earned $1 in Monthly Dividends
Realty Income (O) is one of my favorite companies in my dividend portfolio. And, for the month of June, I earned $1.00 in dividend income. AMAZING! I know, I know. It’s only $1. But, it’s $1 that I didn’t have to work a job for. Yes, I had to use sweat and hard earned money to purchase shares in the first place. But, once I bought those shares, that was it. In my portfolio, at the time of this writing, I owned 5 shares of Realty Income. Realty Income pays $.20 per share, making my monthly income $1.
I have been trying for years to make money online. Not necessarily to get rich (although I’ve tried those too), but just to have extra income. I know this isn’t exactly making money online, but it’s just as passive, and to some extent more passive. Granted, I would need A LOT of shares to make any decent money on a monthly or even yearly basis. But, that first $1.00 to me was special. It gives me motivation to keep going because I know that the more shares I own, the greater my dividends.
That $1.00 was one small step for my dividend portfolio and one giant step towards financial freedom.
Thank you Realty Income.
Nice job paying down the debt, adding more stock, and earning a dividend. Are you paying trading fees to add 1 share or do you have free trades through a service like Robinhood?
No trading fees. So, for XOM, I drip directly with the company through a transfer agent and so I don’t pay trading fees. I will pay fees when I sell the stock, but nothing while I’m adding to my position. For the rest of the stocks in my portfolio, I use the Robinhood app, so everything is free right now.
Congrats on the XOM buy. Concerning Murphy – the best way to make him irrelevant is through an emergency fund. And I would say that the best motivation is through documenting your journey especially when you can see quarter over quarter tangible results. Welcome to the community!
Thanks Charlie.
I am SLOWLY building my emergency fund. It’s hard to do with all these bills, but I realize the importance of doing it. Welcome to the site!
Slowly but surely Data Lore.. I think you are doing way better than me in writing blog. I have difficult time writing blog since I don’t have much time. Just keep up the great work Data Lore!!!
Appreciate it Div Bunny.
You seem to have your priorities straight. Getting rid of debt is an instant way to go cash flow positive. Who wants to pay interest when you can earn dividends instead. As you already know this is a marathon and those first few dollars will eventually turn into a flood of dollars. This is the hard part now getting through these “slow” months and small dividend payouts. Stick with the plan and in a few short years you’ll be amazed at how far you have come.
Appreciate it DH. It’s definitely hard during these slow months, but I do plan on sticking with it.
One of the best things about getting behind dividends is that you can see the monthly income come in vs just hoping the account will be worth more in the future…even if it is just a buck
Totally agree Evan. Getting income like clockwork is a great perk to dividend growth investing. Not only do I like seeing the dividends flow into the account, but I love to see those dividends increase over time. It’s a long road, but I think it’s definitely worth it.