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July 17, 2018
As you might know, I trace the dividend (and options) income of the most seasoned bloggers on the internet starting from January 2015. The data is available in an interactive and hopefully nicely formatted table. If you select an Income Hero, an additional chart shows all his progress over the last years. Some days after each month’s end I am visiting their sites to update the stats with their latest data.
On 15th of July, most Income Heroes updated their chronicle of financial heroism. This month, I present some charts. Most data are available on the Income Heroes Main page, too. Yet, I think its interesting to point to some details and it may also help to better understand the Income Heroes Main page.
The Income Heroes Charts
Monthly Portfolio Yield
Dividend investors strive to generate “passive” income. To make this come true, they build a portfolio of dividend stocks. A popular metric to quantify the actual outcome of this effort is the monthly portfolio yield, describing the relation between portfolio market value and dividends (and option) income received for the given month.
In general, the monthly yield remains below 1%. Yet, option income may boost the monthly yield below this threshold. The downside of this income turbo is that option income is (in general) more demanding and risky compared to dividend income. Anyway – because option income is used by some dividend investors today while others may be interested how their fellows are doing with options, I included analysis of option income in Income Heroes right from the start. As a side-note: I am option seller, too ?
Cliché Income Hero
Monthly Portfolio Yield (Dividends and Option Income)
This month, nobody exceeded the 1%-Threshold. Yet, with 0.94% DivGro was close, thanks to option income, while My Dividend Dynasty managed to yield 0.62% with dividends “only”. If the current market value was not available (or if I was to blind to see), because of mathematical constraints a zero yield gets returned. Wachstumswerte.Net – which is me – achieved a 0.1% yield, making me proud owner of the red lantern. In absolute numbers, Mr. Tako’s dividend income is unmatched. His “big bar” will follow us in the analysis to come. ?
Check this out
On Income Heroes, the “Monthly Yield” is also available. If you want, go back to last month and check out if someone was able to break the 1% threshold in May.
Dividend Income Last Month Vs. Year Before
Comparing the latest month with the same month one year before is a very popular benchmark to measure the progress of dividend growth. Many Income Heroes managed double digit growth, and two of them grew their dividend income even more than 100% – admittedly from a small base, which in turn is a nice motivation for all starters. Negative dividend income is mostly related to shifts in dividend payments. Mostly investors in European stocks are concerned with this because these stocks often pay dividends only once or maybe twice a year instead of four times as in the US. Thus, if one or two fat positions in your portfolio pay yearly dividends one month later as usual, the impact on this metric is rather large.
Dividend Income Monthly Comparison
Check this out
On Income Heroes, the home country of the Income Hero is shown. Can you confirm, that the US Income Heroes’ income is more evenly distributed than the income of their European colleagues?
Dividend Income Last 12 Trailing Months Vs. 12 Months Before
Because the single-month comparison is sensible to dividend shifts, it’s more accurate to track the progress by comparing dividend income of last to previous twelve trailing months.
Dividend Income Twelve Trailing Months Comparison
Again, the stunned reader witnesses double digit growth nearly all the way even for larger portfolios. Compare these numbers to common salary increases and to find the answer if building a growing dividend income may be of interest for you.
Check this out
The 12-month-comparison is also available on Income Heroes using the column “Income Growth”. And Mr. Tako’s TTM dividend income is available there, too – I decided to limit x-axis on 20.000 USD to avoid scaling problems with smaller incomes.
Overall Monthly Dividend Income
Finally, a short look at the combined performance of all Income Heroes.
Average Monthly Dividend Income
The green chart are shows the average monthly dividend income. Surprise: it’s increasing ? Though the average income by month greatly varies, the 12 months moving average proofs that dividend income is not only steadily increasing but even doubling from less than 400 USD to about 800 USD within just 2 years and a half.
Conclusion
Dividend investing is a popular and promising way to improve your financial situation in the long run. Even better, it’s not that hard. If you’re a starter, I congratulate you for this great decision. If you haven’t already done, visit the pages of the other Income Heroes (link provided in the table of Income Heroes). Much knowledge and inspiration are waiting for you.
P.S.: Another Income Hero named Dividend Driven also compiles the data of his fellows. If you like Income Heroes, you may like this effort as well:
Another nice compilation of dividend income
4 Comments
Awsome site. Very helpful for DG investor like me 🙂 and very nice reports. I look forward to further reports.
Czsec PaydayMe,
thanks for stopping by and glad you like,
Torsten
Hi Torsten!
Thank you again for your analysis. It’s very insightful and easily digested!
You are doing some fantastic work here, thank you!
Blake
Hi Blake,
glad you like and thanks for your nice comment.
Torsten