Three years ago I began investing my non-voluntary contributions to a pension that were returned to me after I left a job I had held for seven years. At the age of 44, I felt like I could generate a nonPension income using dividend growth stocks that would be at least as high as the pension pension payments I would have received if I had qualified for a pension.
The job required ten years of employment to qualify for the pension, which I did not meet, but proportionally speaking, I would have been entitled to a $560 monthly pension starting at the age of 65 if the employer actually provided pensions to employees who worked for seven years.
At the time I left the job, I would have taken back my contributions even if I would have qualified for the pension, because my time horizon would have enabled me (hopefully!) to grow the initial contributions of about $21,000 into an amount great enough to generate at least $560 per month in income.
I started monitoring my progress here in January 2017, when my average monthly income was about $66. This past month, my average monthly income has surpassed $85 for the first time. It is a long way to go until I reach $560 per month, but I still have 17 years to go.
The increase in my average monthly income this past month is $1.00. That comes from two dividend raises that happened in September as well as reinvestment of dividends from various other securities:
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Verizon (VZ) raised its dividend on September 6. That increase is 2%, so that raises my average monthly income by 5 cents.
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J.P. Morgan Chase (JPM) raised its dividend on September 18. The upcoming dividend payment will be a huge 43% higher than the previous one. The result of that raise is that my average monthly income is up by 68 cents.
The remaining increase of 27 cents comes from reinvestment of dividends received from 22 stocks:
ADM, AFL, AMGN, BA, BG, CCL, EAT, GILD, HBI, KSS, INTC, IP, MPC, PAG, PFE, PRU, PSX, QCOM, R, TGT, WFC, and WHR.
More dividend increases are expected next month, and more reinvestment of dividends is expected as well.
| Ticker | Shares | Avg Monthly Dividends | One Year Ago | % Change |
| AAPL | 5.190 | $1.26 | $1.09 | 15.87% |
| ABBV | 9.930 | $3.18 | $2.12 | 50.00% |
| ADM | 13.100 | $1.46 | $1.40 | 4.69% |
| ADNT | 1.000 | $0.09 | $0.09 | |
| AFL | 11.125 | $0.96 | $0.80 | 20.93% |
| AMGN | 3.206 | $1.41 | $1.23 | 14.78% |
| AMP | 5.327 | $1.60 | $1.47 | 8.43% |
| BA | 4.307 | $2.45 | $2.04 | 20.42% |
| BBY | 16.969 | $2.55 | $1.92 | 32.35% |
| BG | 9.575 | $1.60 | $1.47 | 8.70% |
| CAH | 7.342 | $1.17 | $1.13 | 3.01% |
| CCL | 11.696 | $1.95 | $1.56 | 25.00% |
| EAT | 10.878 | $1.38 | $1.38 | 0.00% |
| EMN | 7.443 | $1.39 | $1.27 | 9.80% |
| GEO | 25.949 | $4.07 | $4.07 | 0.00% |
| GILD | 6.397 | $1.22 | $1.11 | 9.62% |
| GLW | 28.622 | $1.72 | $1.48 | 16.13% |
| HBI | 25.085 | $1.25 | $1.25 | 0.00% |
| HOG | 12.899 | $1.59 | $1.57 | 1.37% |
| HPQ | 39.192 | $1.82 | $1.73 | 4.97% |
| INTC | 14.835 | $1.48 | $1.35 | 10.09% |
| IP | 14.355 | $2.27 | $2.21 | 2.70% |
| IRM | 16.242 | $3.18 | $2.98 | 6.82% |
| JCI | 10.461 | $0.91 | $0.87 | 4.00% |
| JPM | 8.480 | $2.26 | $1.58 | 42.86% |
| KSS | 12.308 | $2.50 | $2.26 | 10.91% |
| LAMR | 7.364 | $2.23 | $2.04 | 9.64% |
| LM | 17.077 | $1.94 | $1.59 | 21.43% |
| M | 13.473 | $1.70 | $1.70 | 0.00% |
| MPC | 17.159 | $2.63 | $2.29 | 15.00% |
| OHI | 18.100 | $3.98 | $3.86 | 3.13% |
| PAG | 11.480 | $1.38 | $1.22 | 12.50% |
| PFE | 16.282 | $1.85 | $1.74 | 6.25% |
| PRU | 6.556 | $1.97 | $1.64 | 20.00% |
| PSX | 6.428 | $1.71 | $1.50 | 14.29% |
| QCOM | 9.883 | $2.04 | $1.88 | 8.77% |
| R | 10.726 | $1.93 | $1.64 | 17.39% |
| SBUX | 8.221 | $0.99 | $0.69 | 44.00% |
| T | 17.318 | $2.89 | $2.83 | 2.04% |
| TGT | 7.598 | $1.62 | $1.57 | 3.23% |
| UNP | 6.349 | $1.69 | $1.28 | 32.23% |
| VIAB | 12.713 | $0.85 | $0.85 | 0.00% |
| VZ | 11.101 | $2.23 | $2.18 | 2.12% |
| WFC | 10.659 | $1.53 | $1.39 | 10.26% |
| WH | 7.339 | $0.61 | $0.00 | |
| WHR | 3.184 | $1.22 | $1.17 | 4.55% |
| WRK | 8.069 | $1.16 | $1.08 | 7.50% |
| WYND | 7.375 | $1.01 | $1.43 | -29.31% |
| | | | |
| TOTAL | | $85.86 | $76.97 | |
| Overall annual increase in dividend payments | 11.55% |
| Overall dividend yield -- dividends reinvested | 3.36% |
| Approximate annual growth rate including reinvestment and increases | 15.30% |
| Annual growth rate needed | 11.54% |
| Ahead of goal rate by | 3.76% |
| At current growth rate, monthly payment starting December 2035 | $989 |
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