With this layout I can see my total monthly dividend income at a glance. As more shares are purchased, I can easily add the amount paid by each share to the corresponding company. Dividend increases can also be added with ease and my totals will update accordingly. Not only does this layout allow me to anticipate how much my monthly income will be, it also allows me to document my dividend income for the year and can be used to check against any errors that may happen.
Having my dividend income calculated every month allows me in the future to plan my spending. Some months will have more income which may be needed to be saved for months with lower dividend income. Hopefully my dividend growth exceeds inflation and I'll be able to afford a $100 jar of jam to go with my $100 loaf of bread...yikes!
Each month I log onto my trading account and record my monthly transactions which helps me avoid any clerical errors. By updating my spreadsheets every month it helps spread the upkeep of organizing my financial records and avoids the guess work which comes from year end or God forbid, years of financial clutter.
To me personally, it's a rewarding experience to see an updated spreadsheet with all my passive dividend income recorded on it. As each year passes, you can look back and see how your dividends have grown and the visual representation can show you which stocks haven't lived up to your dividend growth expectations. By investing in stocks that increase their dividends, the power of compounding will let you retire sooner than you ever thought possible.
How do you keep track of your dividend income?
2 comments:
Hey! Thanks for this. My way of keeping tracks of Dividends was a mess! Just adapted your format... much cleaner. Question for you. I've often read that you should keep track of what percentage each stock you own in your Portfolio. ie : No stock should represent more than 5% of your portfolio. Do you track your stocks that way? If so, do you use excel for that as well?
Hey DVDguy.
I don't track my stocks that way because I don't follow the 5% rule. If a stock does well I will likely buy more of it and sell the stinkers. I'm all about dividend growth and if a company keeps growing their dividends, why wouldn't I buy more of it? I can always sell it later to balance out my portfolio if need be and appease the 5% nay sayers.
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