November Side Hustle

July 2017 Passive Dividend Income

Passive Dividend Income Builds Up Slowly But Surely
My dividends continue to build slowly, but surely.

 

Disclaimer: This site includes affiliate links. Should you choose to sign up for any program with my referral links, I may be compensated. July is now winding down, and with it, summer. I’m always kind of sad to see this season waning although I like the weather in the fall more. With the end of another month, it’s time to review the passive dividend income that came my way in July.

July 2017 marks the end of two years since I started tracking my dividend income. I own shares of several different companies and funds that pay me one a monthly or quarterly basis. These companies sell their wares around the world, 24 hours a day. Therefore, a portion of their profits accrue to my account.

I love getting this income. I was in Europe last month visiting Prague and other cities. While I was there, my broker sent me an email that told me I’d received a dividend.

Whether I’m asleep or working hard, companies that I own pay me. The same goes for what I’m wearing. It doesn’t matter to the companies that I own. I earn some money in pajamas. I earn some money while I’m dressed in business casual for work. Right now, my passive dividend income is pretty small. I’m expecting that it will grow over time to be a nice snowball with its own mass that increases largely on its own.

Passive Dividend Income For July 2017

Today, I have to periodically add capital to get the snowball started. Without further ado, here is where my income for July 2017 came from:

Traditional IRA:

Realty Income Corp (O)                                                          $5.29
General Electric (GE)                                                              $9.60

401k

JP Morgan Equity Income R5 (OIERX)                           $0.44

TOTAL DIVIDENDS FOR APRIL 2017:                           $15.33

The first month of each quarter tends to the smallest for me in terms of dividend income. October is likely to see a smaller payout for me in terms of dividend income, as I just sold my stake in General Electric (GE) in the last week.

Year-to-Year Comparison

My $15.33 in dividend income that I received in July brings my total for 2017 to $221.97. At this time in 2016, I’d earned $69.77 in dividends. Therefore, I’ve increased dividend income to this point in the year by 218%. My dividend income in July 2016 was only $8.50, so my year-to-year increase for July was just above 80%, which wasn’t quite as good as my year-to-date cumulative increase.

With my sale of GE, the estimated dividend income that I expect to receive from my IRA dropped to $427.57. I track my dividend income in terms of the number of hours of freedom that it will buy me. This income should buy me about 21.5 hours of freedom each year, which is just less than 2 hours a month. I estimate that every $20 of dividend income would replace one hour of working income when accounting for taxes and work-related expenses.

I’m happy with the progress that I’ve made over the past couple of years. I’ve added this income to my Monthly Dividend Income page. How was your dividend income for July? Let me know if the comments.

Disclaimers And The Like

If you’d like to keep up with my progress, be sure to sign up for updates in the email signup box near the top of the page or via the popup that asks you to sign up. You can also follow me on Twitter.

Disclaimer: I am not a professional financial advisor. I intend this information for informational and educational purposes only. Perform due diligence before investing in any equities. See my disclosures page for more information. I’m long O and OIERX.

November Side Hustle

April 2017 Passive Dividend Income

Passive Dividend Income Builds Up Slowly But Surely

The month of April is not quite over yet, but my passive dividend income for April has all arrived in my accounts.  The end of the month is one of my favorite times, because I get to tally up the passive income that I earned from dividends over the previous 30 (or so) days.

April was the first month of the second quarter. This means that fewer companies tend to pay out, which hurts my income from my 401k fund. Regardless, all of the companies that I own continued to work making money for me.

Every share that I own is an ever-so-small slice of the company that issued the shares. In effect, I own 0.0000000001 percent of these companies (or some other such minuscule number). Regardless, I love the fact that they work on the other side of the world while I’m sleeping to make me money.

Regardless of what I do in a given month, I get paid. Of course, I have a regular job and work hard to supplement that income, but it’s good to know that I have a growing stream of passive dividend income. Here are the companies that paid me in April:

Passive Dividend Income For April 2017

Taxable Account:

Coca-Cola (KO)                                                                           $3.24

Traditional IRA:

Realty Income Corp (O)                                                          $2.11
General Electric (GE)                                                                $9.60

401k

JP Morgan Equity Income R5 (OIERX)                        $0.01

TOTAL DIVIDENDS FOR APRIL 2017:                         $14.96

Yes, I earned a whopping penny from my 401k. Not terribly impressive, but better than nothing, I suppose.

Year-To-Year Comparison

Admittedly, not even reaching $15 might cause frustration for many people. However, when I look at this amount and compare it to the same month last year, I earned only $8.90 last year. This means that I increased my dividend income by 68% in just 12 months.

Increases of this size will not continue indefinitely, but they are pretty cool. They also help me build up my passive dividend income. They are important building blocks toward my goal.

I’ve now earned $105.31 so far in 2017. At this point last year, I’d earned only $33.27. This means that my passive dividend income is up 217% in just a year’s time. Pretty cool. Onward and upward.

I have to point out one thing, however. I sold all of my taxable investments over the past month, because, as I noted  previously, Loyal3 is shutting down. As this was my taxable investment vehicle of choice, I sold out and put the money into my Traditional IRA, hoping to cut my taxes for 2017 in the process.

This means that you’ll no longer see some of the common dividend payers on my reports previously. I wanted to let you know why.

I replaced my taxable holdings with more AT & T. This brings my estimated dividend income (not counting the 401k) to $398.90 for the next 12 months. I’m only one more purchase or one more dividend raise from crossing over the $400 mark. Again, pretty cool stuff.

How was your dividend income for April? Let me know in the comments. I’ve also updated my passive dividend income page so you can see the growth of my income over time.

If you’d like to keep up with my progress, be sure to sign up for updates in the email signup box near the top of the page. You can also follow me on Twitter.

Disclaimer: I am not a professional financial advisor. I intend this information for informational and educational purposes only. Perform due diligence before investing in any equities. See my disclosures page for more information.

Image credit: Wikimedia Commons

November Side Hustle

January 2017 Passive Dividend Income

It’s hard to believe, but the first month of 2017 is in the books. There are less than 330 shopping days left until Christmas. The end of the month is one of my favorite times of each month. It’s the time that I look back and tabulate my passive dividend income for the previous 30 days. As all of my brokerage and retirement accounts are updated, I can now add up how much I made passively in January 2017.

Why Dividends?

I’ve decided to build up a stream of passive dividend income through dividends because they come in whether I work or not. I own some great companies. These companies sell their wares or rent out their space 24/7/365. Many of them do so in many nations around the world. One of the coolest things about a dividend growth strategy is the fact that these companies frequently increase their payments with me doing absolutely nothing.

Passive Dividend Income Can Add Up
A $500 bill, public domain via Wikimedia Commons

My dividend income is admittedly quite low at this point. I’ve been working on building it up for less than two years. Any dividend income, however, is gravy. It’s currently a small snowball that’s building mass over time. This increased mass results from three components. These are more invested capital, reinvested dividends, and dividend raises. Put all of them together, and it should be hard not to see an increase in dividend income over time.  Therefore, to end your suspense, here is my passive dividend income for 2017.

January 2017 Passive Dividend Income

IRA Account:

General Electric (GE)                                 $9.60
Realty Income Corp. (O)                         $2.03

Total Passive Dividend Income:        $11.63

I did not earn any income from my taxable or 401k accounts during January. Therefore, only these two companies paid me anything. This was the first time that I’ve earned a dividend from Realty Income, but I should earn something every month, as this company pays out on a monthly basis. It also just announced a dividend increase of 0.8 cents per month. This increase added a cool $1 to my expected dividend income for the next year and allowed my to pass a dividend milestone.

Year-Over-Year Comparison

My dividend income was well off my record month in December. That’s the bad news. The good news is that it was more than double what I earned in the same month last year.  In January 2016 I only earned $4.48. Therefore, my passive dividend income grew by more than 162 percent on a year-over-year basis. Needless to say, I’m pretty happy with that result.

Additionally, my estimated dividend income for the next 12 months is up to $302.11. I’ve noted before that I like to track my dividend income in terms of the number of hours of freedom that it should give me based on a $20/hour salary. This means that I theoretically have 1 hour, 15 minutes of freedom each and every month. This should only grow over time, so I’m pretty happy about my progress. I updated my Monthly Passive Dividend Income page with these results.

How was your dividend income for January? Let me know in the comments.

If you’d like to keep up with my progress, be sure to sign up for updates in the email signup box near the top of the page. You can also follow me on Twitter.

Disclaimer: I am not a professional financial advisor. I intend this information for informational and educational purposes only. Perform due diligence before investing in any equities. See my disclosures page for more information.

November Side Hustle

October 2016 Passive Dividend Income

Well, another month is nearly in the books. We’re now at the end of October, and now less than two months from Christmas. The market has been up and down over the course of the year, but most people have been able to make money if they’ve stayed invested in dividend-paying stocks. This is the type of investment that I’ve decided upon, as these companies actually pay me to own a part of them.

October was a pretty good month for me, going well in excess of my dividend income from the same month last year.  My dividend income should go up over time, but in the short term, it will probably go down a bit, as I’ve decided to sell most of my taxable holdings. I’ll probably explain this further in another post at a future date. I’ve rolled over a tax-deferred account from a previous employ into a traditional IRA, and I will be putting more money toward that in the future year after reading some really good information on tax-deferral from the Mad Fientist’s web site.  You can look at some cool stuff from the Mad Fientist regarding taxes and super charging your retirement portfolio here and here.  Basically, the less that you pay in taxes means more capital for saving for retirement. Therefore, I’m going to shift my focus up a bit and use my taxable account as more of a (hopefully) growing emergency fund that pays out a growing stream of dividends while I wait to need the money while leaving my IRA (and possibly other tax-deferred accounts) to grow until retirement.

Overall, I had four great companies that paid me over the course of October. Three of these should continue to pay me into the future. I trimmed Coca-Cola, but I completely sold out of Bank of Nova Scotia, although it will be on my radar for future purchases in a tax-deferred account. I’ve decided to utilize Loyal3 for my taxable purchases because of the low (i.e., free) transaction costs. I will also up my average purchase through TradeKing, which charges only $4.95 per purchase, to between $500 and $1,000 per transaction to keep the fee below 1%. You can sign up for TradeKing here and possibly get a $50 bonus after meeting some funding and purchasing requirements. I use TradeKing for my non-Loyal3 purchases.

Without stringing you along, here are the great companies that paid me during the month of October. I’ve broken them down by taxable and retirement accounts.

Taxable Accounts

Coca-Cola (KO)                                       $4.19

Kraft-Heinz (KHC)                                $0.34

Bank of Nova Scotia (BNS)               $5.11

Retirement Plan Dividends

General Electric (GE)                            $4.60

TOTAL Dividends for October       $14.24

These dividends bring my total dividend income for 2016 up to $116.17, and my $14.24 for the current month showed a 144 percent growth rate on a year-over-year basis. I should be ahead of this next year at this point again, if all goes as planned and I am able to continue putting more capital to work over time. Because of the stock sales that I noted earlier, my estimated dividend income for the coming year dropped to $130.31, but again, this should go up and exceed where it was as I make periodic purchases within my IRA. I plan to purchase between $500 and $1,000 a month until my transfer amount runs out. If the market crashes and burns before that, I’ll accelerate the purchases, as the best time to purchase stocks is the same as most as just about any other purchase–when they are on sale.

How did your dividend income look in October? Let me know in the comments.

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 around five times in a month. In other words, your inbox will not get inundated with random emails.

Disclosure: I am long all stocks mentioned with the exception of BNS, which I sold in October.

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.