I received $68.56 in taxable January 2018 dividend income.
My bathroom project has been a lesson in having a backup plan. Late December, I found a crack in my shower pan. One thing led to another and I suddenly found myself doing a full tear-out and replacement of my bathroom! At first, it was an unexpected punch in the gut. I’d been aggressively building a passive income portfolio for just over a year, and looked forward to making big contributions every month.
I will spend about $12,000 on the bathroom. That’s about six month’s worth of monthly taxable account contributions. I considered selling some stocks, but instead drained my emergency fund. My priority now is to rebuild my emergency fund, but I do intend to make portfolio contributions along the way. In the meantime, my dividend growth portfolio will continue doing what it is meant to do – grow dividends.
The good news is that I continue to reinvest dividends right back into my portfolio at no cost to myself! I was able to buy one share each of ADM, PFE, and HRL this month just from January taxable dividend income, along with a little left over from December. My monthly dividend income is about 5% of my normal contribution amount. Someday, my dividend income will replace my contributions, but for now, I’m thankful for the dividend output it is giving me.
This has been my most major house expense, by far. I panicked the first week or so a bit. It is now almost complete, and it is money well spent. I can’t wait for the last few pieces to come together so I can start using it. I have to pull myself out of the saving mindset a bit, and remember to also invest in quality of life from time to time. Building a passive income portfolio is a long process, and it would be a shame not to enjoy life a little along the way.
January 2018 Dividend Growth
EMN: 9.80% dividend increase, boosting my income $1.40.
DIS: 7.69% dividend increase, boosting my income $2.16.
Total additional income: $3.56. That is the equivalent of an additional $119 invested at a 3% yield that I didn’t have to invest!
January 2018 Taxable Income
Head on over to my portfolio page if you’d like to see what companies pay me in other months!