May 2016 Freedom Dividend Income Update: $533 (+$474, +803%) 5


Hi everyone. Welcome to my May 2016 Freedom Dividend Income update.

My May 2016 net worth showed significant improvement which made me somewhat excited.

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My 2016 goal is to reach $200K but I think we will get there a lot faster than we anticipated.

 

Well to be honest, I don’t really care much about how market and my net worth move because they will always go up and down. On top of that I always get paid through dividends regardless of the market movement.

My stocks may decrease their values but as long as fundamentals are strong then the stock prices will eventually catch up to fair values or even higher than fair values. It is just a matter of time so patient is a virtue when it comes to value investing. Who really knows if market crashes next month? The market is shaky and very volatile but you know what that means! You can take advantage of bargains. So please do whenever you can.

 

Enjoy what you love to do while collecting your passive cash dividends.

While we just collected free dividends from the stocks we purchased as usual, my wife and I forget all about the stocks and just enjoy what our life has to offer.

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Babushka Polish Lady

 

We have been enjoying the spring to the fullest. Can’t really complain about the weather of Toronto from May to September. It is just perfect.

spring is here

Spring Flowers are fully bloomed!

 

As usual, we went out to enjoy the weather. Caught up with lots of friends walking around the city.

 

meetup

Our doggy caught up with her friends as well

 

Can’t even count how many times we are at patios drinking beers this month. Life is just so good when you realize and appreciate small things of life. I love feeling the spring breeze at my favorite patio in our condo while reading some books, listening to good music and having a background noise of the people by the outdoor pool fades away while consuming cold beers during sunny days and hot teas during evenings.

 

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Homemade BBQ ribs with ice cold beers to celebrate the end of spring. Spring ends on June 19, 2016. So long Spring!

 

Most of that is free amazingly. All you need to do is to rinse away stress from your day job by enjoying what matters to you while slowly growing dividend cash flows.

waiting doggy

My dog greeting after a long day of work washes away all the stress from work.

 

Our family had a great time in May. That got me thinking that what if we can enjoy our lives doing things that we like to do every day? My work is fun but at the same time very stressful. Well… That is the reason why I save and invest wisely so that I can get out of this rat race. 🙂

spring2

I thought that was a butterfly from a far sight.

 

I love passive income so much and once our passive income covers our expenditures and some savings then we plan to retire and do what we love to do. I am not saying you should quit your job but what’s better than making money by what you dream to do? You get paid no matter what… when you sleep, when you travel, when you don’t feel like to commute for an hour to get to work, when you are sick of dealing with office politics… You can put whatever hated reasons you can think of here to focus on your dividend (or passive) income strategy and that will empower you to do what you always love to do with your life. Without going on another 50 hours to explain further, here is a list of stocks that I received dividends in May 2016.

 

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I invest in 30 companies so far. I see stocks as my employees and trust me I am their worst nightmare. ???? I perform my rigorous screening process from tens of thousands applicants. I select only 30-40 employees to interview then I hire only 1 of the best at a time by paying him/her upfront payment. Once employees are hired, I pay them nothing. No pay, no benefit, no holiday… ???? I infamously enforce24/7 working hour policy. They cannot walk off and I only can fire them based on their performances. Strangely, ????  they have been bringing in more and more money everyday to me and even bringing their friends to sign the employee contract for free!! I guess life is good ????

 

Year to Year Freedom Dividend Income Comparison

DIV graph

 

May was another fantastic month, wasn’t it? Total payment hits $533. We collected $59 last year around this time so I am extremely pleased with the result as we really didn’t do anything to earn the free cash payments other than keep living within our means, saving rigorously and buying great stocks at low regardless of where the stocks will be headed temporarily. It is very easy and you can start it right away so let me repeat what I said. “We live within our means, save as much as we can and invest wisely”

We collected

$561 of dividend income in July, $278 in August 2015,

$698 in September 2015,

$464 in October 2015,

$358 in November 2015,

$641 in December,

$705 in January 2016,

$619 in February 2016,

$829 in March 2016.

$599 in April 2016.

And $533 in May 2016.

 

The average of them finally exceeds my family’s monthly grocery budget. It will eventually cover our rent within a couple of years. What did we do to collect the money? Nothing… we did really nothing to collect the money. On top of that, the dividend income is getting higher and higher as time goes by.

 

For example, our Cominar REIT stocks provided us

$42.88 in July

but in August we got paid a little bit higher at $43.12 due to automatic DRIP set up with the stock

then it became $43.37 in September 2015,

$43.61 in October 2015,

$43.86 in November 2015,

$44.10 in December 2015,

$44.35 in January 2016,

$44.84 in February 2016,

$45.20 in March 2016 and

$45.45 in April 2016.

$45.69 in May 2016.

 

It will keep increasing its body infinitely. I am quite confident that in 5 years, the company will pay us at least $60 monthly and within another 5 years the company will pay us $100 or even higher monthly. That’s how reliable and predictable high quality dividend income companies provide their returns to you even though you do nothing to collect them. Just buy, forget and collect dividends forever. Think about it, all of our dividend stocks from my portfolio will get themselves bigger and pay us more every month.

We are definitely on the right track because our dividend incomes increase significantly every year.

 

When you see 2014 VS 2015 dividend income, the result is extraordinary.

Total dividend income in 2014= $820

Total dividend income in 2015= $3968

That’s $3,148 growth year over year. That’s additional $260 per month working for us that get our portfolio bigger. Great job to myself, my wife and our moral supporting lazy doggy. We are doing great!

 

We bought more stocks recently that boosting our dividend income.

In January 2016 we bought Dream office REIT and Orvana Group

Recent Buy- Dream office REIT (D.UN) and Orvana Mineral Group (ORV) +$781 of annual dividends

which will add $781 of dividends annually to our dividend income streams.

 

In February 2016 we bought about $5,500 worth of Corus Entertainment stocks which adds about $673 annually.

 

In March we bought Black Diamond Group and Concordia Healthcare Corp which will provide about $495 of annual dividend.

 

Unfortunately, in April we did not purchase any stocks.

 

In May, we bought Gilead Sciences which adds about $152 of annual dividend.

Recent Buy- Gilead Sciences (GILD) +$152 of annual dividend

The purchases will make us stronger every time.

 

Track your net worth. You will see astonishing result within no time as you are more focused than ever!

We will keep buying when opportunities are out there in the market. I see many opportunities lately due to the crash of the oil and other commodities prices which is just perfect for me. As you may know, it did not take too long to build this portfolio. When I started this blog (a year ago), our net worth was around 80K (excluding my car) and that only provided us less than $2,000 of annualized dividend income. However, now it provides predictable $7,000 of annualized dividend income per year and that number will always go up. Amazing huh?

 

As I mentioned several times, building your dividend portfolio isn’t very difficult. See the following links for excellent ways to save money and invest.

Check out my portfolio page to see what stocks I own and the following article for more investment tips-How to Simply Invest and Get Richer for Dummies in 8 Easy Steps.

and great advice from Peter Lynch and Warren Buffett.

Legendary investor Peter Lynch’s Top 13 best stock picking tips from ‘One Up on Wall Street’

 

50 most insightful Warren Buffett quotes that you need to read to be rich.

 

11 most important Warren Buffett’s stock picking tips, especially 7th one.

If you are also a dividend investor like me, then you should check out the following page to see how other dividend investors are doing. You won’t regret a moment of reading their valuable and inspirational articles. Blogroll

 

quote sacrifice

 

Hope my real cash dividend income updates inspire anyone who is dreaming of becoming financially independent. I am not there yet but I am happy to share where I am and where I will be headed along the journey to be a millionaire thus financially more independent.  

Don’t dream on winning lottery or a jackpot from your local casino. That’s not going to happen to you. Dream on something that is so real that you can catch it after executing easy passive income strategies. It is not going to take very long to see the results and I am sure you can do it as well.

All you need is a strong commitment for your future. Start your first step right now and come along for the million-dollar journey. Hang in there because your loved ones got your back (and me 🙂 )

 

 

 

 

 


Leave a Reply

5 thoughts on “May 2016 Freedom Dividend Income Update: $533 (+$474, +803%)

  • DivHut

    Thanks for sharing these awesome results. Over $500 is a very solid figure no matter how you look at it. Your employees are working harder than ever for you churning out more and more income 24/7. As you stated, “…life is good.”

  • chu

    Not a big fan of Husky energy, the cost of drilling oil is even higher than the current oil price, basically paying $50 to drill $40 worth of oil, electric cars are everywhere, the whole oil industry is becoming another Kodak/ Nokia. Meanwhile, the future of power companies like Capital Power Corp are bright… what do you think ?

    • monsterid
      Be Smart Rich Post author

      I am not a big fan either… May 2016 was me trying to still figure out my investing strategy.. Husky was one of early stocks that I bought (Probably bought at 2015 summer…) without really knowing how to invest… I still held at the time… Take a look at my recent update which shows big change…

      http://besmartrich.com/2017/05/18/besmartrichs-portfolio-update-may-2017/

      I do not understand resource stocks so I won’t buy anymore unless it is really attractive. Oil industry will probably survive. It won’t be Kodak and Nokia since oil is being used everywhere. Popularity of electric cars alone won’t shutdown oil industries but it may have some meaningful impact in like 10-20 years.