Money Tree

I’m Making More Money with No Effort!

Last week was a great week on the earning money in pajamas front. As I preach over and over again, the best income is passive income, because it’s the me of today benefiting from the decisions that the me of ten years ago or a few weeks ago made. Not one, but two, companies in which I hold a small stake decided to increase their dividend payouts–on the same day, no less. This was a doubly great day. Now, I don’t profess to have a massive stash of income-producing stocks, as I’m just getting started on this dividend income journey, but regardless, any time that I get a raise for any reason whatsoever, I’m pretty happy.

Most of my raises have come from doing a good job as an employee or because I’ve changed jobs. This raise came from doing basically nothing other than investing in companies that have done a good job of building up massive cash flows that are enough to pay off a portion of the cash flow to their investors on a regular basis. My hope is that over time, I can build a growing stream of dividend income that allows me to work less as I get older.

Here are the dividend increases that I got last week:

Coca-Cola increased its quarterly dividend from $0.33 per share to $0.35 per share. This will add $0.58 to my annual forward dividend income based upon the slightly more than 7 shares that I currently hold. This is not a massive increase, but should I be able to add capital on a regular basis to where I have say 100 shares, this would be compounded to a much bigger benefit. The goal is small additions to my passive income stream compounding into a much larger income stream in the future.

Wal-Mart also announced a dividend increase. This one was only about 2 percent, as it was $0.01 per quarter. This added $0.18 to my annual dividend income based upon the ~4.5 shares that I currently hold. Many people would look at 18 cents and think whoop-de-doo. That’s nothing. They would be right, but 18 cents this year added to more capital, buying even more stock, and paying more dividends that increase by another penny or two on a quarterly basis can really add up over time. Warren Buffet did not start out a billionaire. I just read last week that he’s amassed 99 percent of his net worth after the age of 50. That’s pretty amazing to say the least. I’m hoping to amass quite a bit more than 99 percent of my net worth after age 40.

I have some money in the hopper that’s ready to buy some more stock through Loyal3, and I’m about to reach enough Swagbucks to get $25 more through PayPal that I can then use toward another stock purchase. I usually make my money with Swagbucks by letting videos play while I’m vegging out. It’s not a massive pile of cash, but it’s added up to nearly $1,000 over the past 3 years at a rate of about one $25 PayPal increment each month. You, too, can sign up for Swagbucks with my referral link and start earning toward cash through PayPal.

I’m letting my dividends grow in my Loyal3 account until they reach $10, and then I’m going to open another position with only my dividends. I’m also planning to add capital on a regular basis to increase my dividend payouts. It’s pretty exciting stuff to say the least. The only question is what new company to start investing in. Onward and upward as I attempt to make more passive income.

Disclaimer: I am not a licensed financial professional. This post is intended only for entertainment/educational purposes. Please consult with your financial advisor before purchasing securities.

Money Tree

January 2016 Passive Dividend Income

The first month of the year ended yesterday. I’m working on building up a passive income stream that can provide additional funding when it comes time to retire in addition to Social Security and any pension funds that I’m able to get. Dividends that consistently grow are a good sign that a company has adequate income to build their business and provide monetary benefits to its shareholders.

In the past six months, I’ve been able to build small positions in eight different companies that pay dividends each quarter. In January, two of my companies paid out dividends to me. I own a few shares of Wal-Mart (WMT) stock in an account with Loyal3. I also own a few shares of stock in the Bank of Nova Scotia (BNS) in a TradeKing account. The former pays cash into my account, while the latter allows me to automatically reinvest my dividends. This means that my BNS dividends should grow each quarter (at least in Canadian funds) without my doing anything else. I earned infinitely more in dividend income this month than I did at this time last year, as I was not investing in dividend-paying stocks. Any income whatsoever is an improvement over last January’s total of a big, fat goose egg. Without further ado, here is my dividend income for January 2016:

Wal-Mart (WMT)                            $1.48

Bank of Nova Scotia (BNS)          $3.00

TOTAL for January:                    $4.48

My BNS dividend purchased an additional 0.065 shares of stock in the company, which should add approximately $0.14 to my dividend next quarter given a similar exchange rate. I’ll be looking to add additional shares as funding comes available.

My $4.48 is not a massive amount of money, and it would allow me to take about 15 minutes off if I were to try and use my passive income to replace active income at this point. However, it’s a start, and as it’s been said many times before, the journey of a thousand miles begins with the first step. I’ve taken more than the first step, but I’m early in the journey and hope to add shares and passive income going forward. At this point, my forward dividend income is nearly $109. Hopefully, this will grow to $250 or more by the end of the year.  I’ve added this income summary to my monthly dividend income page.