I received $169.22 in taxable December 2017 dividend income. This crushed my previous high of $130.98 in September 2017 – mostly due to additional contributions to VTI. I will also go over my tax-sheltered dividend income this month ($2,249.22). December is a great month for ETFs and mutual funds, hence the very high income for me. This makes me happy, but I have to keep it in perspective and average it out over the whole year. I still have a long way to go before I can replace my income!
December 2017 Dividend Growth
SBUX: 20.0% dividend increase, boosting my income $1.00.
VVC: 7.1% dividend increase, boosting my income $2.16.
V: 18.2% dividend increase, boosting my income $1.44.
EMR: 1.0% dividend increase, boosting my income $0.18.
MSFT: 7.7% dividend increase, boosting my income $2.40.
PFG: 4.3% dividend increase, boosting my income $0.72.
LMT: 9.9% dividend increase, boosting my income $5.07.
Total additional income: $12.97. That is the equivalent of an additional $432 invested at a 3% yield that I didn’t have to invest!
LMT sits in my Roth IRA. SBUX and V are two of my fastest dividend growers. Let’s hope they can keep up this growth rate!
December 2017 Taxable Income
December 2017 Tax-Sheltered Income – $2,249.22 – Wow!
This was a huge month for my tax-sheltered accounts too. It’s a lot more boring, but I’m starting to see the payoff. I caught up and made maximum 401(k) contributions for 2017 after not contributing anything until April. Most of my holdings in these accounts are mutual funds or ETFs, and December is typically where the largest dividend payouts come for these funds.
My strategy is to prioritize and take full advantage of tax-sheltered accounts available to me. In 2018, I will add my HSA account to the blog as well. At a 15% tax tax rate, I would owe $337 just for this month. Instead, I get to reinvest 100% of this income which will just create even more dividend income.
Head on over to my portfolio page if you’d like to see what companies pay me in other months!