The ETF dividend portfolio has increased by more than $1,000 again this month and it’s not because I’m an amazing stock picker, it’s because I added $1,349 in new contributions! Getting started with investing in the stock market is hard work. It’s very simple, there’s nothing complicated about it, but it takes a lot of effort to get the snowball rolling down the hill by itself.
They say the hardest part is the first $100,000 as then the magic of compounding really starts to take effect and I agree. I’m not sure when the great investor Charlie Munger said that the first $100,000 is the hardest, but I think it’s the first $250,000 or even the first $500,000 that feels impossibly hard. Maybe his quote needs updating for inflation.
ETF Dividend Payments in September
September is another monthly paying ETFs month which is always going to be lower than when the quarterly payers distribute dividends but the averages are definitely increasing.
JPEQ paid out $26.32, FEPI paid $20.40 and QQQI gave me $6.65 for the month which is a total of $53.37 for the three monthly ETFs.
I’ve started keeping a record of the rolling 6 month, monthly dividend payments and last month it was $50.86 which would probably pay my phone bill! This month the average monthly dividends are $58.19 which would now be enough to supply me in 2 minute ramen noodles, assuming I ate them for lunch and dinner while intermittent fasting (skipping breakfast)!
So with my ETF average monthly income of $58.19 I could buy 5 bulk packs of 12 chicken flavored ramen noodles in Australia. That’s 60 individual packets of noodles, two eaten each day and if it’s a month with 31 days I might be a little hungry for one day.
I’m really glad that I don’t have to live off of just ETF dividend income but hey, I’m also super happy knowing that the amount is increasing every month! As the portfolio snowballs and everything increases exponentially I’ll soon be able to use my dividends to pay for much more than just ramen noodles.
The ETF Dividend Portfolio for September
This month the ETF dividend portfolio has increased to $16,771, up from $15,197 in August which is an increase of about $1,574. New contributions were $1,349 which means that there was a $225 increase in the value of the portfolio (last month it was a $219 decrease in value).
Just as a note, the ticker symbols ending in .AX are Australian listed ETFs and those without them are US listed ETFs. The US listed prices and average cost per share are in US dollars but everything else like market value and total dividend income are in Australian dollars.
Here’s what the portfolio looks like this month…
See the ETF Dividend Portfolio from August.
What to Expect in October
I’ll continue adding to the monthly paying covered call option ETFs like JEPQ, FEPI and QQQI as I want my minimum monthly payments to be above $100 as soon as possible.
I’m hoping to buy some SCHD for the first time too. I like the diversification and the history of dividend growth. A three percent yield is not something to write home about but the compound annual growth rate of those dividends over 5 or 10 years looks really good.
ETFs with 10% or 15% yields are great for NOW but they often have very little growth over time. You’re forced to reinvest a portion of that high yielding income to create your own growth.
With inflation always looking to steal our freedom and choices from us, it’s essential to have a good portion of our portfolio invested in dividend paying shares that outpace the two or three percent inflation that the system actually works towards creating for us. When I’m looking at individual stocks I want the dividends to increase by more than five percent every year. Anything less than the rate of inflation and you’re going backwards.
How is your freedom making machine going this year? What’s your 6 month rolling monthly dividend average for your ETFs? (total dividends paid over the last 6 months, divided by 6 equals your average).
Total ETF + Managed Funds Portfolio for September
Portfolio value inside the Vanguard website: $5,758 up from $5,100
Betashares ETF portfolio: $5,925 up from $5,497
US & ASX listed ETFs held in brokerage accounts: $5,087 up from $4,599
Total Index Funds portfolio value (VHY, VGS, GEAR, JPEQ, FEPI, QQQI and IVV): $16,771 up from $15,197
Most recent dividend payment (September): $53.37 up from $43.54 in August (Monthly dividends from JPEQ, FEPI, and QQQI)
Dividends paid in 2024 so far: $429.89
All dividends paid in 2023: $102.68
All ETF dividend payments since buying $580.53
ETF Dividends Goal 1: $2,000+ per year.
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