Stock Purchases and More Dividend Income

I had a bit of capital that came in over the past week, and as I’ve noted before, passive income is the best income. It really allows me to earn money in pajamas–day after day, week after week, month after month. The people who work for the various companies that I hold work around the world, and their products are sold 24 hours a day. This permits me to increase my capital over time as the dividends pay out and slowly grow. I put $21 to work in each of my Loyal3 holdings. I do not have to pay out any trading commissions when purchasing stocks through Loyal3 my total purchase was $105. My capital bought me the following partial shares and additional dividend income:

Company                                    Shares Purchased                            Additional Dividends

McDonald’s (MCD)                            0.1906                                                  $0.68

Kellogg’s (K)                                       0.3153                                                   $0.63

Coca-Cola (KO)                                  0.5013                                                  $0.66

Apple (AAPL)                                      0.1863                                                  $0.39

Wal-Mart (WMT)                                0.3675                                                  $0.72

I’ve decided that these were all good companies when I started investing earlier this year, and I’m sticking with my decision even with the recent concerns over Wal-Mart. I’m planning to be in this for the long haul, so I’m not planning to sell unless a dividend is cut. My goal is to get about $500 in capital invested in each of my companies before adding another (although I might diversify more if I find another company that’s a great deal). When adding up the additional dividend income that I’ve added with this latest purchase, I come up with $3.08 in additional dividend income. Apple has a lower yield, but with the massive amounts of cash that the company produces and has on hand, I’m of the opinion that they should be able to grow this dividend extensively over time. Otherwise, I would have had a few more cents.

This additional $3.08 on an annualized basis brings my estimated yearly dividend earnings for the next 12 months to $73.53. Considering that I had an estimated $0 coming in just about four months ago makes me reasonably happy with this big increase. I’ve already set another record for monthly dividend income this month, and I hope to see it grow so that I’m earning more and more in pajamas every quarter (because the income is a bit uneven based upon when my companies pay). Have you made any investments lately? How much passive income have they provided?

4 thoughts on “Stock Purchases and More Dividend Income

  1. Adonna says:

    This is a great post. I’ve recently started using Loyal 3 myself and I’m hooked. 🙂 I currently hold KHC (bought before the merger) and MCD. Kraft was auto-reinvesting the dividends but that appears to have stopped since the merger. The next payout date is Nov. 20th, so we’ll see what happens.

    I’ve now started a spreadsheet to track payouts and dates. I’d like to get a company paying every month. BUD is currently on my list of stocks to consider. KHC pays dividends in Jan, Apr, Jul, and Nov. MCD pays out in Mar, Jun, Sept, Dec.

    Loyal3 has been great so far. My purchases have all gone smoothly and without a hitch. Dividends are deposited on time. It’s really great to get in on buying some of these companies that can be cost prohibitive for starting investors otherwise once you start looking at their DRIP plans. I’m excited about their future and can’t wait to see what companies they will add going forward.

  2. Chris says:

    I also have an account with loyal3. They have several blue chip stocks I invest in regularly, Walmart, Hershey, and Unilever. Have you checked out Computershares drip plans? They offer many stocks. I currently have been buying Exxon Mobil and Emerson through them.

    • cp913 says:

      I personally use TradeKing to buy shares of companies that are not available on Loyal3. I was really considered XOM, but I decided to go with Shell.

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