To quote the eloquent US president Barack Obama, my income from investments has been 'like Special Olympics or something' lately.
Husky Energy (HSE), Bank of America (BAC), and General Electric (GE) have all cut their dividends over the past few months sending my portfolio income spiralling. Yes, the third earner in our family has taken a 6% pay cut. He is however, still pulling in 99.5% more money than he was at this time last year. Our current dividend income sits at $3,271.29, or $8.96 per day. This is down 6% from a high of $3,479 in December of 2008.
If we were living off this income I might consider switching from Australian to Chilean red wine, but since this income is supplementary and gets reinvested anyway I am not concerned and am sticking to my knitting. The financial crisis will have many casualties, including my income from investments. I am not surprised to see it decrease in the short term. I still do expect the generous yearly raises to continue in the mid and long term. The rewards for putting our money at risk are potentially much greater now that the market has suffered as it has. Well-managed companies with strong brands will continue to grow and raise their pay outs to investors in the years ahead.