I have two brokerage accounts in US and Japan respectively. Even in my Japanese account, most of my investments are in US stocks. In March, I earned $1,854 gross dividend income from the accounts, which is $116 less than the same month in 2014. The reason is that I received a cash distribution as a result of VOD’s separation from Verizon Wireless in March 2014.
In March, my expenses were JPY 275,560 that is $2,296 if I use $1=JPY 120 exchange rate. If I take neither US income tax nor Japanese income tax into account, about 80% of my March expenses were covered by my passive income. But a typical US income tax withheld against dividend income is 10% and Japanese income tax is about 20.42%. I can get US income tax returned next February. Therefore, my net dividend income in March should be $1,475, which covers 64% of my expenses.
My dividend income is skewed in March, June, September and December. I will get much less dividend income in the rest of the year.
Full Disclosure: The author has no longer the position of VOD