Saturday, April 12, 2008

$5.18 per day & growing

My Favourite Graph - April 12, 2008 Update

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.

In this April 12, 2008 Update - Our Income from Investments is up 24% since January 30, 2008.

Current Total Annual Income From Investments Per Year = $1,890
Current Total Annual Income From Investments Per Month = $157.46
Current Total Annual Income From Investments Per Day = $5.18
One Year Income From Investments Growth Rate = +330%
One way we like to think of our income from investments, is that we currently have a third income in our household, this 'person' earns $1,890 / year (taxed very favourably).
My spiffed up 'favourite graph' below is plotted at the end of each month.


Anonymous said...

We have been using this philosophy for years and you will definitely benefit from the cash flow, our current daily amount is over $300.00 per day and still going.

MG said...

anon, wow that is fabulous. I am curious to hear more about your journey. If you get a chance you should send me an email or post here if you feel comfortable...


epson600 said...

How do you have you chart set up? I am planning to do one as well but the smallest timeframe that I can think of for tracking real dollars is quarterly, if I do it month by month then its subject to the fluctuations of what months the dividend day falls into.

Unless you add up all of the (est) Annual Dividends * shares at the end of each month and divide by 12?


MG said...

epson, I am a little confused by your question. Our annual income from investments has nothing to do with when dividend payments come in. I only actually plot this at the end of each month. What I actually plot is the amount of money we will receive annually for our investments at that point in time. Let me know if you have any further questions.

Timothy Fong said...

Hi, what do you suggest as a way to actually "track" your portfolio?

I have found that the portfolio reports in brokerages don't really do that for me...particularly if I sell or accumulate dividends.

Is there a recommended system you use -- seems like you use Excel? But anythingyou'd

MG said...

hi tim, I use Excel exclusively but I have hear that Quicken does a pretty good job.

dividenddollar said...

That is a great looking chart! It has grown very quickly. Best of luck.

Dividend Growth Investor said...

A very interesting chart MG.
My goal is to achieve 9,000-12,000 annually in dividend income in 6 years.

Best Regards,


Middle Class Millionaire said...

mg heres another metric you can include.

21.6 cents an hour...(awake and sleeping)

not a great hourly wage but more than most people make in their sleep.


MG said...

for sure mcm, also $0.91/ hour for a 40 hour workweek...

miked789 said...


I was wondering how long you have been investing, and how much money you have invested to get to that level? (if you don't mind)

For the longest time I didn't trust the stock market. I considered it no more than gambling... I finally educated myself and I am now pumping as much as I can into a dividend strategy.

My only complaint is the upcoming change in dividend tax rates. I had just decided to move away from RRSP to an investment account to take advantage of my wifes low income and the dividend tax credit.


MG said...

Hi miked,
I don't mind at all. I've been investing for about 5 years (seriously for about 2-3 years). As far as my income from investment, I currently have around $45,000 of capital that is generating the $5.18/day of dividends and distributions.


Dividend Growth Investor said...

Wow, thats a 4.2% yield on cost.

MG said...

"Wow, thats a 4.2% yield on cost."

Actually as of today my yield on cost is 3.9% and my current yield is 4.2%.