Throughout these updates we will go over the previous month’s dividend income, as well as our rolling 12 month projected dividend income and our progress towards our goal of having $50,000 in annual passive income. For reference, I received my first ever dividend payment in December 2017, and I immediately realized that they needed to be a prominent part of our any investment strategy.
If you’re interested in seeing November’s post click here.
Welcome back everyone, for our closing passive income report of 2020.
December caps off what has been a memorable 2020 for us in so many ways.
Let’s jump straight into the numbers, here are the dividends we received in December broken down by account:
That’s right, $824.75 received for December. This is a strong amount but also a bit upsetting.
Looking back on last years December total of just over $700 we thought that this year we’d challenge for $1,000 this month.. obviously back at that point the Covid-Crash hadn’t happened yet and we hadn’t re-balanced our portfolio so in hindsight this number makes sense but it is still a little bit deflating not reaching that 4 figure month this year.
Our next shot at a $1,000 month won’t be until March which is a big paying month for us which may yet be possible and you’ll see why below.
Let’s get into the yearly breakdown:
The official year end total for 2020 ends up at $8,091.28!
If you checked out our recent goals recap you’ll know that our goal for the year was actually $8,000 in received dividends so that turned out to be quite accurate.
The 17% year over year increase from December to December is a lot more in line with our expectations moving forward than the 100%+ we had been getting, obviously the larger our dividend income becomes the harder it is to increase it by larger percentages.
The goal for 2021 is to receive $11,000 in dividends so stay tuned.
Let’s have a look at our projected income for the next 12 months:
To wrap up the year 2020 our projected dividend income is $10,195. Our goal for the year was to end with a projection over over $9,000 and we just barely surpassed that. The reason for us being so far past the $9,000 so suddenly is due to the fact that we moved $24,000 into our dividend portfolio out of our index funds of our work savings plan.
The plan for the year is to contribute $2,000 into his and $2,000 into hers accounts per month and to continue really snowballing this passive income machine until the time which it actually begins to phase out one of our incomes.
Given the tax friendly setup of our accounts we’re feeling in 5 years time we should have enough passive income to phase out Mrs. FIC’s income – she will still work optionally, preferably by continuing to grow her freelancing but we’ll see how that shakes out.
With our newly increased projected income for 2021 we’re now 100% expecting to hit at least one or two $1,000 months if not more.
To grow our passive income from starting investing ($0 passive income) in December of 2017 to now having 5 figures of passive income just 3 short years later is mind blowing and completely validates our investment strategy in our eyes.
Remember that we are just documenting our investing journey and sharing our triumphs and mistakes along the way, this isn’t any form of advice or recommendations so please consult a professional before investing your money!
If you’ve got any questions or comments for us leave them below or over on our
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Thanks for stopping by,
FIC.