A Path to Forever Financial Freedom

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Dividend Income Updates - Q2 FY2017

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It's the time of the year again where I try to tabulate all the dividend income received in the quarter and see where I stand in terms of passive income cashflow.

I am terming it as passive income because it's the closest to passive as I can get. Naturally it means having the management takes good care of the company and then we reap in the rewards as a shareholders of what's left in the profits.

The theme of this post will be based on my understanding of the advantage of dividend investing and that is to compound dividends for as early as we can, for as long as we live.

I wrote about this theme not too long ago which you can refer here.

I am sure by now many of you have heard the common saying of "Sell in May and Go Away" phenomenon that has been going around, lurking and prompting investors to sell their portfolio holdings and seek a hideout until the bear comes out.

While there are some truth in this, do note that they are not bound for absolute certainty given how some years they've turned out otherwise. They are noises to stir around the emotion of an individual, to test and see if they are investors who have a developed mind of their own or simply buying and selling based on what they heard on the street.

Now, if you decide to sell them based on the above reason, you will soon find yourself to be in an extremely difficult position to allocate the capital you have at hand as you have to find a better company with a better valuation, which does not come across too often. I've shared in my previous post (Link Here) how difficult it can be for an individual to sell and buyback and unless you're a proven winner in this category, you are better off compounding those dividends you receive from your company as much, as early and as long as you can. I think that's a slower but a pretty high success rate in the long term.

Ideally, I hope this will one day overtake what I am earning from my active income so it'll give me a peace of mind financially towards having more option on what I can do with my money and life.

Without further ado, here is the dividend income received in the 2nd Quarter of 2017.

CountersAmount (S$)Payable Date
Fraser Logistics Trust2,792.00 23-Jun
M11,180.00 28-Apr
LMIRT712.00 30-May
Comfortdelgro666.00 15-May
Fraser Comm Trust (scrip)501.00 30-May
First Reit174.00 26-May
Far East Hospitality Trust372.00 27-Jun
Elec & Eltek1,260.00 26-May
OCBC6.00 5-Jun
Total 7,663.00

That's a decent $7,663 of dividend income received in the second quarter which will give a big boost to the cashflow.

The amount drops slightly from previous year due to my undertaking of more Reits which gives out quarterly dividend so this will bump up the next 2 quarters.

I am treating this dividend income as part of my cashflow which would be reinvested into the market that will give me a higher dividend income in the future and this continues to compound for as long as I can afford to.

If you think that this strategy interests you, do give it a try for at least one year and then check back how it is. I think it's a pretty addictive exercise to try out.

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