Dividends

  

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End 2023 update 

There was a 25.7% increase in dividends/interest collected in 2023. 

End 2022 update

There was a 22.1% Increase in dividends/interest collected in 2022. This adds to my 'margin of safety.' One of my plans is to build up extra spare cash flow which I can use for charity work when I retire.

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End 2021 update

The above chart shows the YoY increases in dividends/interest collected. In 2020 my dividends dropped my 20%. My 2021 target was for a full recovery to 2019 levels and thereafter reach financial independence in 2022.

Thanks to a very good stock market in 2021, I reached my target earlier as dividends grew by 37.8% in 2021!

My passive income now equals to my current standard of living so I have technically reached "financial independence." Of course, if passive income drops below this level (eg: something like 2020 happens again), then my passive income might drop below my "FI level."

However, my FI is not "lean FI" where there is no margin of safety. It is more like "Fat FIRE" as it builds in "nice to have" spending like multiple overseas holidays  and business class air travel (overseas holidays are part of my regular spending, not just a retirement plan. Though currently I'm ok with Economy class for all but the longest flights, when I'm retired and older, business class seating is certainly more comfortable.)

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2019 update

The above chart shows the YoY increases in dividends/interest collected.

As the chart shows, I have managed to double my dividends collected in the space of 3 years. I expect the rate of increase to slow (in % terms) over the next few years. However, I think I am still on track for financial independence within the next few years (i.e. passive income > survival expenses + standard of living expenses.

2019 also includes a number of 1-off payments for:

• OUEHT - OUECT merger
• AHT - ART merger
• Prudential demerger (ADR manager sold the M&G shares for cash)

Even though I considered CPF part of my bond holdings, I didn't include it from the start so for consistency, I'll continue with not including CPF. However, I'll make a note somewhere how much total dividend/interest I collected for 2019 including CPF interest.