The past couple of weeks have been rough on stocks. It’s now down 9 out of the last 10 sessions. I’ve put more money to work, though. Could it go lower? Sure. Will it eventually come up if it does? Most likely. Regardless, as I’ve said before, passive income is the best income, and I’ve decided to buy more of solid companies that have long histories of paying out dividends. My first two buys in the last few weeks were in WalMart and Apple. WalMart has been basically sideways, and Apple has been hit pretty hard in the days since I purchased them. Day-to-day fluctuations are not a big concern, as I’m not looking to sell these stocks in the next few months.
Last week, I put $150 to work in McDonald’s stock through my Loyal3 account. This purchased 1.5196 shares in the Golden Arches. McDonald’s has a current annual dividend level of $3.40 per share, which gives a dividend yield of just above 3.4 percent on my cost. This added $5.16 to my estimated dividend cash flow for the next 12 months. I’ve eaten at the big M all across the US, and I’ve also eaten at this company’s restaurants in England, the Czech Republic, and Honduras. They are literally making money every day all across the planet.
Yesterday, I decided to buy again. I had $250 to put to work. I again bought WalMart with a purchase of $50. This purchased an additional 0.6973 of a share. At an annual dividend payout of $1.96 per share, this added another $1.37 to my estimated dividend payout over the course of a year. $1.37 might not sound like a huge amount, but the $1.37s will start to add up over time. It’s also possible that WalMart’s stock will increase in price over time, which would further enhance net worth.
My final purchase was in one of Warren Buffet’s holdings: Coca-Cola. This Atlanta-based company has increased its dividend for 52 straight years. This is one of the largest such streaks that are around. This stock is tied to another of my purchases, as McDonald’s sells Coke products around the world. I’ve also had Coke in various places that I’ve visited. This includes places as remote as small towns in Kenya. The footprint of Coke is huge. I put $200 into Coca-Cola through my Loyal3 account. This bought 4.8804 shares of the soft drink giant. Coke currently pays out $1.32 per share for a dividend, and this is a yield of more than 3 percent. This purchase bought me an additional estimated dividend payout of $6.44 on an annualized basis.
There you have it. I’ve bought a small slice of three massive companies that have huge global footprints. All of these companies are able to handle their dividends at this point with their current level of earnings per share. My hope is that they will continue their long streaks of paying out to shareholders and also add to the dividend on an annual basis. My current dividend income portfolio now has an estimated annual payout of approximately $18.28. Of course, this could go up or down, but my goal is to reinvest dividends into companies that also provide income, which will hopefully lead to an ever-growing amount of capital and income. This will definitely be an example of earning money in pajamas.
Disclaimer: I am not a professional investor or a financial advisor. All information in this article are merely for entertainment purposes. People can and do lose money in the stock market. Consult a professional before deciding to make any investments.