Saturday, March 22, 2014


Dividend income for the first quarter of 2014 will be more than four times the amount earned in the first quarter of last year, for an increase of a little over 300%!  While I'm as excited as the next person about gains in the stock market, I'm a lot more excited about eh increases in monthly cash flow from dividends from my current investment strategy.  Every time I think the news just can't get any better and the increases will have to start slowing down, it seems there's another jump in earnings.

I read more today about an expected correction in the market and considered diverting some dividends to cash savings.  The idea being to stockpile cash and wait for a better buying opportunity should the correction materialize.  However, I decided to stick with the program and continue reinvesting all dividend payments for the time being.  If the correction should occur, ongoing dividend income will purchase more shares at the lower prices and help reduce average price per share, so I can accomplish the same goals while continuing to build my current positions.

I'm currently looking for ways to come up with a lump sum of cash for investing to give my monthly cash flows a big one-time boost.  It worked well in the first quarter, boosting dividend income by 20% a month, so I intend to repeat the process for the rest of 2014, shooting for 20% increases every quarter.  I did the math and if I could continue this process over the next 10 years, I would replace my current income by year nine and double it by year ten.  Of course that would mean doubling dividend income every year for 10 years, which is pretty ambitious, but this year the double is already in the bag.  So I'm really working on doubling the third years income.  

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