Author: Mr DDU.
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One day we want to be able to live purely off the income from our investments. The earlier this happens in our life, the better.
How will we know when this happens? How do we know if we’re getting any closer?
By tracking it of course. Each month, we’ll add up how much dividend income we’ve received. Hopefully every time we do this it will show the income is steadily increasing, bringing us closer to our goal.
Out of all the things we track, our dividend income is the most important to us.
We have started this post series from July 2015 because the Australian Tax Year/Financial Year runs from 1st July to 30th June. We have been investing for a little while before the blog and we had to start somewhere, the start of the financial year seemed like a clear fit.
If you are reading this quite a bit later than when it was posted, information in this article might not be current, please read here to find our most recent posts on ANZ (ASX:ANZ)
In December 2015 we were paid the following in cash and franking credits:
- ANZ Bank (ASX:ANZ): $49.40 Cash and $21.17 Franking Credits. Total $70.57
This dividend was re-invested into buying 2 more ANZ shares, which will add $3.62 cash, $1.55 franking credits, $5.17 total dividend income to the next year of payments from ANZ.
Below is the graph showing our yearly dividend income for the first 6 months:
With 6 months gone, that’s an average of $52.03 a month, still over $50.
December only had 1 dividend payment from ANZ. But it was an increase from the December 2014 dividend, which helps our income. I’m not sure that ANZ will be firing on all cylinders in the short term, but its Asian businesses will be the key to any growth. It also wants to take a greater share of the residential loan market, so I’m hopeful of modest increases.
Seeing the dividends there on a graph is inspiring to me. I can see our future life starting to sprout from the seedlings we’ve planted.
The next couple of months will have little dividend activity, but at this point I’m really pleased with the progress so far.
What do you think of our half year progress? How was your December?
Thanks for reading this article about our investing journey Down Under.
Onwards and upwards!