Wednesday, January 30, 2008

my favourite graph

Of all the Excel charts and graphs that I keep in managing our personal finances and investments, I must admit I am partial to one. I have explained previously how powerful I believe dividends can be, as well as how I consider them crucial to our investing philosophy long term. Dividend increases mean more money in your pocket, and they have the added benefit of being one of the more permanent aspects of investing. The graph below is immediately affected in this relatively permanent way every time a company that we own raises their annual dividend, as well as every time I add new shares of a dividend paying company to our non-registered portfolio. It is this relative permanence of value that really has me routing for this graph to rise week to week and month to month.

Current Total Annual Income From Investments Per Year = $1,523
Current Total Annual Income From Investments Per Month = $126.91
Current Total Annual Income From Investments Per Day = $4.17

One Year Income From Investments Growth Rate = 390%

The graph is plotted at the end of each month.


Dividends4Life said...

There's a feeling of success each time a company raises it dividend. With a focus on dividend income, market pullbacks can viewed as opportunities to pick up jewels that are rarely available.

Best Wishes,

Sami said...


one comment, do you think it is better to isolate growth in dividends from company payout stance from growth from your own monthly contribution? Because the graph will go up as long as you contribute to your portfolio and buy additional shares.

MG said...

sami, Good point. Perhaps I should create another graph that just reflects the growth of the actual company dividend payments, that does not include my inflows. To just work in percentage terms I could probably simply add up per quarter or per year dividend payments for one share across all companies and then track growth that way. I think I will do this....

I do still like to see my iflows included on this one though because the numbers are real. Also, as I go along my inflows will become less and less significant.

MG said...

sami - Do you track this way? If so let me know how you do it, as I just realized a problem with the way I was thinking of doing it (new companies entering in the portfolio will cause artificial growth). I guess you could just take a weighted average of percentage growth after each year is complete.

Sami said...

I track NAV of my portfolio for my performance, which is not what you want.

I guess you can do it by tracking your overall portfolio div yield over time to see if there is actual dividend growth over time. your denominator will grow with more contribution therefore showing you if dividends are actually growing.

John said...


I am with the “feeling of success” each time a company raises it dividend.

Just keep at your plan and all will be well.

After 30 years of doing what you are doing now my yearly dividends for 2007 were $76,017.

The market may go up and down (i.e. my portfolio has lost 15% in total value since Oct 2007) but the dividends just keep on going.

Dividends now also let me add a new position or 2 each year.

MG said...

thanks for the comments John, it is really nice to hear from someone with some experience in dividend investing.

telly said...


I track income earned from investments similarly based on the book "Your Money or Your Life". Our graph has 3 lines, money coming in (salary, etc.), expenses going out and income from investments. As we're still very much in accumulation mode, both income and expenses lines are far higher than investment income but it's motivating to see the investment income line go up.

It's still too far away to track our "Crossover point" but the day our expenses line crosses the investment income line will be a sweet day indeed!

MG said...

that is very interesting telly. I like that idea and may set up something similar. I really like getting ideas from participants here...amazing...

Growingdividend said...

I think that a nice way to track your dividend income growth is by calculating the organic dividend growth. In other words, if you bought $1000 worth of stocks several years ago, which were yielding 3-4% and the only money that you put in the portfolio were the dividend money, the growth in your income would be larger than the growth in the dividend payments alone.
Personally I find your graph very inspiring. I can't wait until i achieve $1000 in passive monthly dividend income.