My Dividend Journey So Far: 2015 to 2024
As a long-term income investor, I’ve been tracking the growth of my dividend income over the past decade. From the early days to where I am today, the numbers show an upward trend with some interesting twists. In this post, I’ll break down the key takeaways from my dividend income journey, using data from 2015 to 2024.
The Numbers: A Decade in Review
I started small in 2015, receiving just SGD 1,200 in dividends. It wasn’t much, but it was the beginning of a journey that would see significant growth. Fast forward to 2016, and I saw my first major leap, with dividends jumping to SGD 13,000. This was a result of refining my strategy and investing in income-generating assets that aligned with my goals.
The real momentum kicked in from 2017 to 2020, where my dividend income soared to SGD 71,145. Here's a breakdown of how it progressed:
2017: SGD 23,197
2018: SGD 39,825
2019: SGD 38,553
2020: SGD 71,145
A Massive Dip and Recovery
However, no journey is without its bumps. 2021 saw a notable dip in dividends to SGD 25,747 as result of Covid portfolio rebalancing and other factors, but it was an opportunity to reassess and adjust my strategy for the future.
The following year, 2022, marked the start of a steady recovery, with dividends reaching SGD 28,551. And by 2023, I was back on track with SGD 52,795 in total dividends received for the year. What's most exciting is that 2024 YTD has already surpassed the previous year, with SGD 53,007 and counting.
Key Takeaways from My Dividend Strategy
Consistency Pays Off: The sharp growth I saw from 2016 to 2020 was a direct result of disciplined investing in strong dividend stocks. The more you put in, the more you get out, especially when reinvesting dividends.
Market Cycles Are Part of the Journey: The dip in 2021 served as a reminder that markets fluctuate, but with a long-term focus, those temporary declines can be managed.
Diversification and Adjustments: Over the years, I’ve made portfolio adjustments that helped smooth out the dips. It’s important to stay diversified, especially in income investing, to maintain a steady cash flow.
Compounding Power: The true magic of dividend investing is in the compounding effect. By reinvesting dividends, I’ve been able to grow my income faster, turning small investments into larger ones.
Looking Ahead
As of 2024, I’m excited to see where this journey continues. My focus remains on finding solid, dividend-paying stocks that fit my long-term goals. The progress so far has been encouraging, and I believe the years ahead will offer even more opportunities for growth.
That’s all for now folks!
IB