My average monthly dividend payment in the nonPension portfolio is now $83.96, which is 50 cents higher than it was this time last month. My average monthly income is now almost 15% of what it needs to be, and there are about seventeen and a half years to go until the income will be used.
With only two dividend increases in the past month, it makes sense that the increase in average monthly income is less than what we might see in a typical month. But it is significantly higher than it would have been if there had not been a surprise dividend increase this month.
Here is where the increase came from in June:
😶 Target (TGT) raised its quarterly dividend by 2 cents, or 3% on June 12. This raises my average monthly income by 6 cents.
😍 Starbucks (SBUX) raised its quarterly dividend by 6 cents, or 20% on June 15. This raises my average monthly income by 16 cents. This was also the second dividend increase in the past nine months.
The remaining 28 cents came from dividend reinvestment in multiple securities: ADM, AFL AMGN, BA, BG, CCL, EAT, GILD, HBI, HOG, INTC, IP, KSS, MPC, PAG, PFE, PRU, PSX, QCOM, R, WFC, and WHR.
The growth rate of dividends over the past year means the expected payment in December 2035 will be higher than what I would like it to be based on my goals. One year ago, the portfolio was not on track to meet the 2035 goal: http://nonpension.blogspot.com/2017/07/average-monthly-income-june-30-2017-up.html But that was due in part to a dividend that had been cut less than a year earlier.
As you can see from the bottom entry on the table below, the growth rate of the portfolio will push my income well above where it needs to be in 2035 if current growth rates remain the same indefinitely. This will likely not be the case. But having that entry to use as a benchmark to see where progress stands will be helpful.
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