Recursion [January 2015]

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Recursion [January 2015]

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Since the beginning of December, I haven’t transferred any funds from my checking account to my brokerage account. As a result, the amount of free cash flowing into my brokerage account has slowed to a drip. This won’t stop me from reaching my goal of financial independence though. I’ll still be acquiring shares of high-quality dividend growing companies, just at a slower rate.

If financial independence were a five gallon bucket, instead of using a hose to fill it, I’m going to place it under a leaky pipe and let the water slowly accumulate automatically.

The beauty of dividend investing is it fuels its own growth. Every dividend dollar gets reinvested into more dividend stocks, and the payout from those stocks is used to buy even more dividend paying stocks. The dividends of dividends beget more dividends.

The dividends I receive are deposited directly into my brokerage account. From there I will purchase new shares every-time the amount of cash hits $1000. I receive an average of about $200 a month, so this translates to a purchase every 5 months.  The reason I don’t make a stock purchase every month when I receive $200 is because of transaction fees. Each buy/sell transaction costs me $5. By waiting until I have $1000 cash to deploy, I’m reducing my transaction fees to 0.5%.

January was a pretty stable month financially. I surpassed my budget of $30/day or $930 for the month.

Expenses: $861.64
Dividend Income: $128.08
Percentage of expenses paid by dividend income: 14.9%

Jcurtiswebb January 2015

Cyclically, January is my low month for dividends. Even so, it’s amazing how relatively small amounts of $10-$30 a month can add up.

Company Dividend Received
Baxter International $26.00
General Electric $23.00
Kimberly-Clark $10.08
Altria Group $13.00
Realty Income Corp $18.00
Phillip Morris $38.00

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