I have now received all the dividends from my share holdings for November, and again I have received more money than I did for the same month last year.
In November 2013 I was paid £332.00 from the shares in my SIPP and £69.92 from the shares in my ISA, which was a total of £401.92. This November I have received a total of £485.07, which is an increase of 20.69%, this is made up of £409.45 in my SIPP (an increase of 23.33%) and £75.62 in my ISA (an increase of 8.15%).
I have achieved this increase mainly from increased dividends (some of the increase is due to a reduction in the account charges levied by my SIPP provider), and although one of my holdings has paid a special dividend in November the increase in my regular dividends is still 4.45% which easily beats the current level of inflation so has given me an increase in real terms.
One of the fun parts of dividend investing is seeing the steady flow of dividend income into your account (I will be paid 67 times in 2014 and this number will increase in 2015 due to the addition of new holdings in my SIPP and ISA), which of course is 55 more than the number of times I get paid by my employer, and although the payments are nowhere near the amount I do receive as a salary, I will have received more than £500 in two months in 2014 (and came close to £500 in another 4 months).
Although I will not post the dividend values for December until they have been received, I already know how much they will be as all the companies have passed their ex-dividend dates, and this year I will receive a total dividend income of over £5,000 (approx. $7,750), which is probably about a quarter of the total I calculate I will probably need to earn to achieve Financial Independence. This may sound like I am still some way short of FI, but I do have two company pensions which will pay me an income, and we are planning on downsizing our home to free up some capital, which will bring me to around 80% of the total income I should need.
I hope these posts do show how regularly saving and investing into high quality dividend paying companies and then re-investing the dividends as they are paid, can accumulate to a point where you earn sufficient to be able to live without the need of working (and bear in mind I was 43 when I started saving into my SIPP, so anyone who can start in their twenties or thirties should easily be able to achieve FI long before the UK state retirement age.