Category Archives: Stock Purchases

Loyal3 Is Shutting Down

Prioritize Your Finances to wind up with a suitcase of money
You won’t be maximizing your money with Loyal3 any more.

Back in 2015, I learned about a relatively new investing platform that allowed users to invest in increments as low as $10 per purchase. Additionally, you could buy partial shares, which made the opportunity even more attractive. This platform was Loyal3.  This actually got me to start investing. Unfortunately, after having used this online brokerage for about two years, I got an email that Loyal3 is shutting down.

Loyal3 Is Shutting Down

This email that I received from the company was a bit of a surprise, but not too big of one. The company did not charge any fees, claiming to make money from marketing the stock of the 60 or so companies that it provided for investors as well as the interest from holding onto cash that was not yet invested in an interest-bearing money market fund.

Loyal3 is shutting down.
Loyal3 is shutting down.

This did not seem like the most sustainable of business models, but because Loyal3 was a member of SIPC, I figured at the time that my investments were safe. I enjoyed the chance to build my investment holdings in small increments over time.

Many in the investing community advocate buying stock in increments of $1,000 or more because of fees that hurt long-term returns. This can make it difficult for small-time investors to begin the process of investing. It can also make diversification a very slow process. With Loyal3, I had as many as eight holdings at one time, built up with purchases that ranged between $10 and $200 for any single transaction.

This was a pretty cool deal.

But now it’s done.

What To Do Now?

Now that Loyal3 is shutting down, what is the small-time investor to do? There are some investing options that might work. RobinHood is one that comes to mind. I’ve not used this platform, but I’ve read about it. RobinHood requires investors to buy full shares, which makes the minimum investment a bit higher.

The email from Loyal3 indicated that those who choose to leave their holdings alone would automatically have them transferred to a new brokerage called FolioFirst. This new brokerage, according to the email, is just for Loyal3 clients. The offerings for FolioFirst accounts will grow to around 200 companies and funds, which is good. Then comes the bad news.

There are still free trades( at least up to 2,000 a month), but the new outfit is going to start charging a $5 monthly fee per account. The minimum investment will now go up to $25 from $10. $5 a month might not sound like much, but it would add up to $60 a year.

Let’s say that a new investor has $50 a month to invest. This fee would mean that the investor would go from paying $0 with Loyal3 to paying $60 with the new FolioFirst platform. That’s a fee that would take up 10 percent of the total investments for the first year. Admittedly, the fee would go down over time as more money gets invested, but it would slow down the growth process quite a bit.

Investors with Loyal3 also have the option of instigating an account transfer to the brokerage of their choice. Option 3 involves selling all shares and then cashing them out.

What Am I Doing?

After getting the email that Loyal3 is shutting down, I decided that I’d opt for the third option. My account has some modest gains. I figured that my $100 in gains would cost me about $20 in taxes at most. Not too bad.

Furthermore, I also took into account the fact that I’m investing for dividend income. With the current size of my account, I’d have to pay about 4 percent of its value in account fees over the next year. That’s more than the roughly 3 percent yield that I’m earning on my holdings.

I’m planning to take the proceeds and invest them into my IRA account with TradeKing. This will provide a positive tax effect because I’ll be able to cut my current-year income by the amount I invest and then save 15 percent of the investment in deferred taxes.

I am planning to make one major purchase or two smaller purchases with the proceeds. This will not have me as diversified as I was, but it will cost me a max of $9.90 in trading fees, which is much less than the $60 I’d lose when looking at the monthly fees that FolioFirst would charge.

I can also buy REITs, telecoms, and utilities that pay higher dividend yields, so my overall dividend income for the next 12 months will probably go up with the purchases.

Conclusion

Loyal3 is shutting down. This is sad in one regard. Small-time investors who are getting started will have one less option when it comes to making small purchases and not having to pay major fees.

I’m cashing out and cutting my current-year taxes by putting the proceeds into a traditional IRA. I should also see a bit of a bump in my annual dividend income as a result.

Setting Goals To Achieve Success

Those who fail to plan, plan to fail. This is a common refrain that I’ve heard many times in my life. Another example is the statement that those who aim for nothing will hit it every time. I don’t know about you, but I definitely don’t want to fail to hit anything. This is why I’ve decided to start setting goals. The beginning of a new year is a good time to set up new goals.

Consider How To Get There

The most important step in setting goals is knowing where you want to go in life. Perhaps you want to become an engineer. This would require going to school for an engineering degree. The same goes for becoming a teacher, a lawyer, or a doctor. If you’d rather become an entrepreneur, schooling might not be quite so necessary. There are many successful entrepreneurs who haven’t completed a degree, among them are such billionaires and Bill Gates and Mark Zuckerberg. However, these innovators had big ideas and the technical know-how to achieve their goals.

Set Up Checkpoints To Measure Success

It’s a good idea to break up major goals into smaller chunks. This is where short-term, medium-term, and long-term goals come into play. In the example of getting an engineering degree, the long-term goal is getting the degree and getting licensed. A good short-term goal might be passing Calculus 1. After getting through the short-term goals, the medium-term goals will become the new short-term goals. Evaluating goals is a constant necessity.

Here are some goals that I’ve been interested in.

Setting Goals for Passive Income Can Lead to Financial Success

I recently read the book Your Money or Your Life by Vicki Robin. Questioning some of the purchases that we frequently make can help us cut expenses that require life energy to pay for. When we make more money than we spend, what’s left over is capital that we can use toward an emergency fund or toward building passive income. I’ve decided after reading up on blogs like Dividend Growth Investor that trying to build up a portfolio of dividend growth stocks like Omega Healthcare Investors and Coca-Cola can provide a growing stream of passive income through growth in the annual dividend payments and through the deployment of additional capital. My long-term goal is building up enough passive income to pay for living expenses. My short-term goal might be to get to $1,000 in forward dividend income by the end of the year.

Setting Goals Can Lead to Passive Income
B&O Stock Certificate, public domain via Wikimedia Commons

Online Earning Could Be A Smart Goal

While it’s possible to build up passive income with many jobs, many people will have a problem having enough excess capital to grow much passive income on their main salary. This is where earning a bit of money on the side can help. This excess money can then go toward savings if it’s not required for paying ordinary living expenses. It’s also possible to earn quite a nice sum from making money online. There are many lists online that offer ways to make money, some without spending a penny. I’ve used these methods to earn thousands over the past few years.

Paying Off Debt

Debt can really be a drag. The more you have, the closer you might be to financial ruin. It’s hard to grow a strong stream of passive income and a solid net worth with massive amounts of debt. Setting goals for paying down debt over time can lead to a great achievement that can definitely aid in your overall financial success.

Achieving Travel Goals

I love to travel. Therefore, some of my goals have to do with visiting some cool places around the US and the world. I had a goal of taking my family to Europe on the cheap, and I was able to do so. However, before I could, I had to figure out a way to pay for most of the trip’s possible expenses with frequent  flyer miles and hotel loyalty points. I achieved this goal with some well-timed credit card signup bonuses like the ones offered on these five credit cards that you could get in 2017.  I’m already strategizing two trips ahead with the credit cards I’m using.

The process of setting and achieving goals can be a great process that can help you gain the success that you’re looking for.  Setting up mileposts along the way can help you gauge how you’re doing in the process. If you don’t set any goals, one thing is certain. You won’t accomplish them.

Have you set any goals this year? Let us know in the comments.

Also, if you’d like to keep up with new posts and ideas for maximizing your resources in life (including time), be sure to sign up for email updates in the box at the top of the page and via our Twitter account @moneyinpajamas.

September 2016 Passive Dividend Income

Yesterday was September 30, which means that today is a new month. Now that it’s October, I can review the month that was and calculate the dividend income that I earned over the course of the month. This is usually my favorite post of the month, because it keeps me accountable and motivated to see a growing stream of passive income going into the future. As I’ve said many times, passive income is the best income. The third month of the quarter tends to be heavy on the dividend side for most investors who focus on income. This has to do with when the companies that pay out the dividends decide to reward their shareholders.

I put $156 of additional capital to work in my Loyal3 account during the month of September. $145 of this was new capital, while $11 was a deployment of accumulated dividend income into Unilever (UL) stock. I noted this small purchase in my post about using dividend income to buy more dividend income. I did not add any new capital to my TradeKing account, but there was a reinvestment, which I’ll get into below.  I did make a purchase in an IRA, and I’ll be discussing this new account I’ve opened in future months.

Without further ado, here are the companies that paid me during the month of September:

Wal-Mart (WMT):                                         $3.65

Unilever (UL):                                                  $0.17

Kellogg’s (K):                                                    $0.75

McDonald’s (MCD):                                    $3.96

Royal Dutch Shell (RDS.B):                      $10.34

TOTAL for September 2016:               $18.87

This total was a new monthly record, albeit, it was only $0.05 more than the amount I received in June. Part of the reason for this was a strange method that TradeKing used to pay out the RDS.B dividend in June. They paid out in RDS.A shares, but it then seemed that they cashed those out because they went up in value. I earned more than $11.00 in June, when I expected only $10.34.  I’m not complaining by any stretch, but it does explain why there was only a small increase.  My most recent dividend from RDS.B bought me an additional 0.206 shares in RDS.A through the dividend reinvestment.

With my September dividends, I am now up to $101.93 in dividend income for the year.  My forward dividend income for the next 12 months should be right around $228.79, which is nearly $20 per month.  That means that I’m just about to the point where I could replace one hour of work each month from my dividend income alone. In the year-to-year comparison, I earned $16.89 more than I did during the same month last year. This was an increase of 853 percent over just one year, not quite as high as my year-over-year increase for August, but I must say that I’m thrilled with this increase. Hopefully by this time next year, I’ll be way ahead of where I currently am in terms of passive dividend income. How was your dividend income over the past year?

If you’d like to keep up with my dividend income over time, feel free to go to the top of the page and follow me. You’ll only get emails when I actually make a new post, which is usually less than five times in a month. In other words, your inbox will not get inundated with random emails.

Disclosure: I am long all stocks mentioned.

Disclaimer: I am not a licensed financial professional. Be sure to do due diligence before investing in securities. This article is not a recommendation to buy a specific company. It is only for educational/entertainment purposes.

Using Dividends to Buy More Dividends

One of my long-term goals is to build up a decent amount of wealth that can produce a nice level of passive income over the long haul. While I’m not likely to get to the $1 million per year in passive income, I believe that several thousand, if not tens of thousands in annual income, is definitely doable over the next couple of decades. When trying to earn money in pajamas, one of the best ways to make this happen is through dividend income. This is passive income that accumulates as a return on capital from allowing great companies to use said capital to operate and grow their businesses.  As I’ve said before, passive income is the best income.

Earning more money is always a good thing. The bad thing about earning more money is the time that it usually takes to do so. There are, however, some strategies that can be used to make more money without putting in any additional effort. Investing for dividends is one such strategy. Here is an article that lists three great reasons for investing in dividend paying stocks. The final reason is key. Even stable dividends pay out more over time. “How can this be?” you might be wondering. The answer is simple–COMPOUNDING.

There is one step and one step alone that is required to compound the your gains, provided that the dividend is left stable by the company paying it out. This one step is reinvesting. There are a couple of different avenues that can accomplish the reinvestment of dividends. The first is through a DRIP program. The DRIP stands for Dividend ReInvestment Program, and in this situation, an investor automatically reinvests the dividend into additional shares of the company that originally paid out the dividend. This will basically increase the dividend payout by the annual yield. A dividend yield of 3 percent that gets reinvested will see the annual dividend payment raise by about 3 percent over the course of a year because the number of shares that our hypothetical investor has should increase by about 3 percent. This is an increase in income that’s more than inflation has been over the past few years–all without lifting a finger.

Several brokerages, such as TradeKing, allow you to automatically DRIP your dividends into companies that permit dividend reinvestment. TradeKing is currently offering a $50 bonus for new signups under my referral link listed above.  You would get $50 for meeting the requirements, and I would also get $50. You don’t have to sign up with my link to invest through TradeKing, but I greatly appreciate any support you might feel like giving. This bonus could be used to buy a share or two of many great dividend-paying stocks.

Automatic reinvestment is one strategy, but there is another. I use the DRIP in my Tradeking account, but I have to use the other strategy in my Loyal3 account because DRIPing is not an option. This involves stocking up on dividend payments until a certain minimum amount of cash is reached. The minimum investment through Loyal3 is $10, and I pay no fees for my investments on this site. You can check out my review of Loyal3 here.  Those who invest through a TradeKing, Scwhab, or any other investment account can also pool dividends to diversify. It’s probably best to pool until a decent amount of money is available so that you can keep the transaction cost to a minimum. For example, a share of AT & T costs around $40 a share right now. Through TradeKing, if you were to purchase only one share, you’d pay $4.95 in transaction fees, which effectively adds about 12 percent to your purchase price.  It would also eat up more than the $1.92 in dividend income you’d get in the first year. It would be year three before dividend income would exceed your transaction cost. If you were to hold off until you could buy 10 shares, the transaction fee would drop to slightly more than 1 percent of the purchase price, which will definitely help long-term returns.

loyal3-logo

I decided in January to use my dividends from my Loyal3 account to diversify. Any additional purchases would come from new funds, while dividend income would just sit until I reached $10 in the account. During the first week of April, I reached the requisite level to make my first purchase from my dividend income stash. I decided that I would buy shares of Unilever (UL), which is a massive international consumer goods company that produces everything from butter to deodorant. I again started to pool the dividends after making this small $10 purchase, except now, I would be adding the small dividend from Unilever into the equation. My first payment came in June, and added $0.08 to my account.  Admittedly, this was a very small amount of money, but it allowed me to inch toward another purchase a little bit more quickly.

I hit $13 worth of dividends in my account by the first week of July, as my payment from Coca-Cola pushed me across the necessary $10 threshold. Again, I put the accumulated dividends toward more UL. Last week, I got my second payment from Unilever, and it was up to $0.17 over the course of a quarter, still not a huge amount, but an increase over the course of three months that allows me to edge ever closer to another purchase. This morning, I awoke to find that a dividend payment of nearly $4 from McDonald’s had posted into my account. This brought my account total $11.49, and I made my third purchase of Unilever stock for $11. If all goes according to plan, I will see a payment of around $0.25 for the fourth quarter in December.

I admit that I’ve put more capital toward my account with Loyal3 over the past nine months, but it’s been great to see that my dividends are growing and allowing me to purchase additional dividends. Even if I never added any additional capital to my account, I should be able to grow my dividends as companies decide to give dividend increases and I reinvest my dividends. This is the power of compounding. Of course, I’m hoping to have enough capital available to pay my bills and to invest each and every month going into the future, but seeing additional dividend income come in without doing more than making a few clicks and keystrokes is positive reinforcement. It’s exciting to see my dividend payments going higher and higher over time.

Disclaimer: I am not a financial advisor. This article is not a recommendation to buy any security. It is intended only for educational/entertainment purposes.

I am long all stock listed in this article.

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May 2016 Passive Dividend Earnings

It’s again one of my favorite times of the month–the time that I get to recount my passive dividend income that rolled in over the past 30 (or so) days. The month of May is over, and I again made some money while working on my day job and while sleeping at night. My dividend income was already ahead of all of last year at the end of March. April and May have just added to this amount.

While the amount is not terribly impressive, it’s growing over time, and that’s my goal. My goal is to build up a growing stream of passive income that allows me to handle many of my expenses when I get closer to retirement. Pennies today will grow to dollars tomorrow, and then into hundreds in a few years. My current forward annual dividend income is estimated at a total of $142.90. During the month of May, I was able to earn the following dividends:

Apple (AAPL):                               $2.24

Starbucks (SBUX):                     $0.09

AT & T (T):                                      $6.85

TOTAL for May 2016              $9.18

This dividend income from May brings my annual total to $42.46, which is well above my $20.91 total for all of 2015. I’ve currently more than doubled my annual dividend income.  I earned my first dividend from Starbucks in May, and I was able to add to both my Apple and AT & T payment from February. My dividend from AT & T was reinvested into 0.175 additional shares of the telecom giant. This DRIP will add $0.34 to my annual dividend income. I did not buy any new companies in May, and I am currently invested in a total of 10 companies.

My dividends from May were $2.91 more than my payout in February. This was an increase of 46 percent in just three months. I did not have a dividend payment in May 2015, so my year-over-year increase is not available. This comparison will start to be available in August.  The growth in my passive income is really exciting. I’m looking forward to the day when I can earn hundreds every month from my recliner. How did your dividend income look for May?

April 2016 Passive Dividend Income

Another month has come and gone. Today is the first day of May, and on this past Friday, I got my last dividend notification for the month of April. I’m now about nine months into the dividend growth investing journey. My goal is to build up passive income over time so that I can enjoy a reasonable retirement in a couple of decades. I believe that long-standing dividend payers who have solid cash flows should be reasonable investments for the long term.

I added a couple of small positions over the past month, but neither of these has paid out a dividend yet. I started pooling my dividends in my Loyal3 account in January, and I reached $10 early in April. I then immediately put that $10 to work in a very small starting position in Unilever PLC. My hope is that my growing stream of dividends will enable me to add to this small start each quarter to start with. As my core positions add more in dividend payments, I plan to increase the frequency of these purchases in UL.

I also cashed out some more funds from Swagbucks and started with a $25 position in Starbucks (SBUX). My hope is to alternate Swagbucks payments and build up some smaller positions. Starbucks does not pay a huge dividend at this point, but the company has been increasing its payout rapidly over the past few years. Additionally, the company is still in the growth phase, so I’m hoping that my eventual yield on cost is much higher than my current ~1.4 percent.

I received three dividend payments during the month of April, so without further ado, here they are:

Coca-Cola (KO):                         $2.95

Wal-Mart (WMT):                       $2.48

Bank of Nova Scotia (BNS):     $3.47

Total dividend payments for March:   $8.90

Dividend income for 2016:                      $33.28

My payment from BNS was subject to a 15 percent withholding tax, so only $2.95 went into my DRIP. This purchased another 0.057 shares of BNS, and it will add about $0.12 to my annual dividend income, although this will vary because of foreign exchange rates. I put the other dividends toward the aforementioned  purchase of Unilever. My current forward dividend income for the next 12 months should be right around $131.67 (although this is possibly a slight bit off because of the BNS forex issue). This way more than the grand total of $0 that I expected in yearly dividends at this same time last year. Earning dividends is truly earning money in pajamas. I do no more work after earning the capital. Then my capital goes to work for me.

If you want to keep up with my progress or learn about my other life hacking achievements and goals, be sure to sign up to follow the blog.

Disclaimer: I am not a licensed financial professional. Please use the information on this site for educational/entertainment purposes only. Be sure to check with a financial professional before purchasing equities.

Disclaimer 2: I may receive compensation if you decide to sign up for any of my affiliate links. This post mentions Swagbucks. I usually get $25 worth of PayPal cash each month from this site, and I use it to buy more stocks that then earn me more dividends that can then go and buy more stocks that then pay more dividends…and so forth. Should you choose to sign up, I thank you for your support.

February 2016 Passive Dividend Income

Well, it’s my favorite time of the month. It’s time to look back and see how much passive income I was able to get from owning high-quality companies during the month of February. I owned no individual dividend stocks at this time last year, so anything is infinitely better than what I got from dividends in February 2015. I was able to deploy a little bit of capital over the month, so my income will hopefully grow even more in future months. I earned two dividends in February, and here they are, without further ado:

Apple (AAPL)                    $1.40

AT & T (T)                          $4.87

TOTAL for February:    $6.27

This was up from $5.41 in the second month of the last quarter, which was an increase of nearly 16 percent over the past three months. My AT & T dividend purchased 0.135 additional shares, which will add about $0.26 to my dividend payout when T forwards money to my DRIP in May. My total dividend income thus far in 2016 is up to $10.75, which is $10.75 ahead of this time last year. I also added some capital to Apple since the last payout, and it should grow. March should be a good month, as I will get paid by three different companies, including my largest holding. I should cross over the $10 mark for a single month for the first time. Hopefully, I can add a couple of zeros to this in the not-too-distant future.

I’m hoping to cross $10 of dividend income in my Loyal3 account that I can then use to open up another position. Starbucks (SBUX), Disney (DIS), or Unilever (UL) are the most likely subjects for this new position, but I’m waiting until I can make the purchase to decide for sure. Unilever has a higher dividend yield at the moment, and they sell stuff that people buy every day. However, the other two are likely to be able to grow their dividends more rapidly in the future because of low payouts. What would be the best buy in this circumstance? Let me know your thoughts?

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.

January 2016 Stock Purchases

With the month of January just about over, it’s time to look back over the month and review my stock purchases for the month. I was able to deploy some capital toward earning my favorite type of income–passive income. I’m a long way from being able to successfully support myself on passive income, but Rome was not built in a day and everyone has to start somewhere.

I made five separate purchases in my Loyal3 account over the month. These took place on three different days. I’m working on topping off all of my companies to have $300 of capital invested in each. I’d already reached that level with my first stock (Wal-Mart/WMT), and I then started to work with the rest of these stocks. My second purchase was Apple (AAPL), and two purchases this month brought me up to $300 invested. I purchased an additional 1.0394 shares of the tech behemoth. This additional purchase added a total of $2.16 of further dividend income going forward.

My next purchase was on the same day as my second Apple purchase. This purchase went toward Coca-Cola (KO) stock. My investment in KO brought me up to $300 invested in this as well, so three of my five companies have now reached this level. I was able to deploy enough capital to add 1.5326 shares to my stash of Coke stock and $2.02 to my forward expected dividend income.

My last two Loyal3 purchases did not allow me to reach my goal of $300 in the final two companies. I was able to buy 0.4468 shares of McDonald’s (MCD) and 0.2248 shares of Kellogg’s (K). At the current dividend rate that these companies provide, the purchases added $1.59 and $0.45 to my forward dividend income, respectively. Overall, these purchases should bring an additional $6.22 to my expected dividend income for the year.

My final purchase of the month came in my TradeKing account (sign up for a TradeKing account, and we could both get a free $50 added to our accounts provided you meet the requirements). With the recent drop in energy stocks, I decided to double down on my holdings in Royal Dutch Shell B shares (RDS.B). I was able to purchase 5 shares at an average cost of $41.04 with the $4.95 transaction expense added into the cost basis. This purchase added $18.80 to my estimated dividend income for the year. While this might be a bit risky as the cost of oil continues to lag near decade-long lows, it’s not likely that Shell is going anywhere and management has gone on record that they will pay the same dividend for 2016. Additionally, there’s not been a dividend cut since the end of WWII, and that’s a long time. When the cost of the black gold finally does go up, there is a chance for some serious capital appreciation in my Shell holdings.

Going forward with these purchases, my total dividend income for the year should be approximately $108.79 (BNS pays in Canadian dollars, so this could be off a bit because of exchange rates).  This is more than $25 more than I would have expected to make just a month earlier. Should I be able to keep up this rate over the course of the year, I’ll add about $300 to my estimated dividend income.

While this might not seem like a huge amount of money, it’s a start to a journey that began with my first purchase of $100 of Wal-Mart stock in my Loyal3 account. I now have positions in 8 different companies and hope to add 2 or 3 more this year to my portfolio. My goal is to consistently add capital to my stash so that my passive income can grow exponentially over time. I’ve set a goal of getting my forward income up to $250 by the end of the year. It’s not quite as much as the number noted above, because I’m not likely to buy much with a yield as high as Shell currently has. This will definitely be money that I’ve been able to earn while doing just about nothing at all while others work (and spend) to make this money for me. How much have you decided to set your goal for? I’ll be updating my first month of dividend income for the year 2016 in the next few days.

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Recent Stock Purchases for Passive Income

I’ve had the opportunity to make a couple of purchases this month that have added passive income to my forward dividend income. These two companies have been hit hard by the market in recent weeks, in spite of being major cash cows. These two companies are Wal-Mart and Apple. My goal is to get $300 of capital invested in all of my companies, and my recent purchases in Wally World have gotten me to this position. All of my purchases were through Loyal3, so I incurred no transaction fees on these purchases.

Overall, I made two separate purchases in Wal-Mart (WMT) that deployed enough capital to buy an additional 1.5405 shares of the retail giant. With the current dividend payment of $1.96 per share, this adds a total of $3.02 of forward income. Of course, Wal-Mart is likely to announce a dividend increase within the next couple of months to keep its streak of around four decades of dividend growth in tact.

My other purchase was a small $12 deployment into Apple (AAPL) stock. This capital purchased only 0.1120 shares of the tech giant, but it will add an additional $0.23 in forward annual dividend payments based upon the current dividend of $2.08 per share. Again, it is likely that Apple will announce a dividend increase at some point in the coming year. Previous raises seem to come with the May payment if recent history is any indicator.

Combined, these purchases will add $3.25 to my forward dividend income. Along with a recently announced $0.01 per quarter raise that was announced by AT & T, my estimated forward dividend income for 2016 is up to $83.77 (about 4 hours of freedom based upon an estimated $20 of net income per hour of work). This should go up as I make additional purchases during the next year. My hope is to get my estimated income for 2017 to more than $200, but this will remain to be seen as I come into additional capital to deploy or as companies might pull a Kinder Morgan and cut their dividends. (I was fortunate not to have bought any KMI before the drop, and I’ve not bought any since.) I believe that my current stable, with the exception of Royal Dutch Shell should be safe, but the market and profits can shift pretty quickly. My next post will update my final dividend income update for 2015. Here’s to a great 2016.