Thursday, September 1, 2016


Just collected my first 6 dividend payments for the month of September, which was a great way to start off the month!  However, on an even brighter note, I figured out a way to boost monthly dividend income an additional 5% per month, with no cash out of pocket.  

Here is how I did it:  I sold my shares of DON for a gain of a little over 15%.  I'm taking that money from my taxable account and transferring it to my Roth IRA.  Once the cash is transferred, I'll use it to buy shares of CLM and ABT.  The monthly dividend from CLM will be nearly three times what I received from DON, although it is a higher risk fund.  To balance out the risk, the more stable shares of dividend aristocrat ABT, will add additional income with it's quarterly dividends.  Even though I created a taxable event by selling DON in my taxable account, the impact on my taxes will be minor and I'll be receiving tax free income through the Roth account from now on.  

I should complete the entire transaction in time to collect my first dividend from CLM this month.  My first payment from ABT won't be until November, but I'm happy that it will add another payment to the middle of the month, since I already collect most of my payments on the first or last part of the month.  I like to keep the money flowing in all month long, so I like seeing more middle of the month payments.  

No comments: