That’s right! If I never added any additional capital to my portfolio, I should receive on average $600/month ($7200/year) in dividends. This amount is also growing at a rate higher than inflation due to buying high-quality companies with histories of paying increases each and every year.
The great part is that it’s taken less time for me to get to $600/month from $500 than it did the previous $100/month increase from $400 to $500.
On April 2nd, I broke $4800 ($400/month) in annual dividends. It was on June 25th that I broke through the $6000 ($500/month) mark in annual dividends. That’s almost 3 months. This time around it only took from June 25th to August 27, barely over 2 months. Now I’m sure this has a lot to due with a difference in new capital being deployed but it also has to do with the compounding effect of more dividends rolling in each month.
The dividend snowball is in effect and I can’t wait to hit the $1000/month mark. At this pace, it will be around April of next year.