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March 2017 Passive Dividend Income

Passive Dividend Income Builds Up Slowly But Surely

Yet another month has come and gone. I don’t like new months for one reason, as they seem to be coming more quickly as I get older. I do, however, enjoy them for another reason, because they give a great chance to look back. One of the best things to look back over is passive dividend income.

As you might already know, I’ve decided to embark upon a path of building a growing stream of passive dividend income. The strategy involves buying stock in a few high-quality companies. These companies have many employees who work hard every day.

They also tend to make lots of money, and part of the money that they make comes back to me in the form of dividends. These are cash payments that I can use for pretty much whatever I want. At this point in life, I’m using them to buy more stock. Which leads to more dividends. Which leads to more stock. And on and on this virtuous cycle should go.

Passive Dividend Income for March 2017

March was a great month for earning dividends. I had several companies and funds that paid out in the month. One was even unexpected. Kraft-Heinz switched up from paying out in the first month of the quarter to the third month. It’s no big deal, but it does make my first month income look smaller. Oh well, first world problem, for sure. Here are the great companies that paid me passive dividend income during the month of March:

Taxable Account

Unilever (UL)                                                                           $0.33
McDonald’s (MCD)                                                             $2.79
Kraft-Heinz (KHC)                                                               $1.72

Traditional IRA

Southern Co. (SO)                                                             $16.80
Johnson & Johnson (JNJ)                                               $8.00
Realty Income Corp (O)                                                   $2.11

401k

JP Morgan Equity Income R5 (OIERX)                  $2.23
Cohen and Steers Realty Shares (CSRSX)            $8.18

TOTAL FOR MARCH 2017:   $42.16

Year-to-Year Comparison

When adding up all of these dividend payments, they come up to $42.16 for the month of March. This is an increase of nearly 210 percent over the $13.62 of passive dividend income that I received in the same month last year.

My dividend income  for 2017 is now up to $90.35 for the year. I was at a little less than $25 at this point last year. My $42.16 in dividend income would have bought me just north of 2 hours of freedom in March, based upon my estimate of needing $20/hour of passive income to keep up my standard of living without full-time work. My monthly passive dividend income page that tracks my progress over time has an update with this information.

How was your dividend income for March? Let us 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.

Image credit: Wikimedia Commons

 

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December 2016 Passive Dividend Income

2016 is nearly in the books. It’s now officially December 31, and all of my dividend payments for the month, and year, have posted to my various accounts. I can’t believe that it’s been more than a year and a half since I first started the process of purchasing dividend-paying stocks in an attempt to increase passive income over time. As I’ve noted on more than one occasion, I truly believe that passive income is the best income. The more passive income that I have coming in, the better my cash flow, and the better my ability to retire one day will be.

I earn dividend payments no matter what I’m doing in a given month. I’m currently on a trip to visit relatives for the holidays. I’ve had some passive income show up in my accounts while on the road. I’ve read several personal finance blogs that have effectively stated that your money can work harder than you can. This is decidedly NOT the case for me at present, but over time, if I’m able to continue the process of saving and investing in companies that pay me, I’ll be able to have money that works harder than me.

View from CasaMagna Marriott Puerto Vallarta
A view that I’d like to see in (hopefully) early retirement.

How is this possible, you might ask? I get tired. I have to sleep for hopefully somewhere around 6-7 hours every night and then take a nap on some afternoons. The money that I’ve deployed doesn’t have to sleep. I own shares of McDonald’s, Starbucks, and Unilever, and these companies sell their wares all over the world in just about every time zone that’s inhabited. Therefore, while I’m sleeping, my companies keep on making money for me, a small percentage of which will come to me in the form of dividends. I occasionally get sick. My companies still make money and pay me from their income. It’s a pretty good deal, if you ask me. In the month of December, I did better than I’ve ever done. Without dragging on the suspense any longer, here are the payments that I received in December:

Taxable Accounts:

Starbucks (SBUX)                                                                  $0.68
Unilever PLC (UL)                                                                 $0.26
McDonald’s (MCD)                                                             $2.10
Coca-Cola (KO)                                                                      $2.14
Kraft-Heinz (KHC)                                                               $0.86
Royal Dutch Shell PLC (RDS.A)                                    $0.42

IRA

Southern Co. (SO)                                                             $11.20

401(k)

JP Morgan Equity Income R5 (OIERX)                  $8.11
Cohen and Steers Realty Shares (CSRSX)         $40.99

TOTAL Dividend Income in December:          $66.76

This total of $66.76 was by far and away my highest dividend income ever in a single month. I had not been including income from my 401(k) account, but decided that there were dividends coming in through it and that it would be a good idea to include it since I’m tracking dividend income. The dividend income that I reported last year was only $9.67. Had I included my 401(k) income, it would have raised that amount to $29.55.  My December 2016 income therefore more than doubled over the amount I received the previous year.

My income of $66.76 for December increases my total dividend income for the year to $241.61 if I go back and add in my 401k dividends for the year that I’ve not reported previously. These came to a total of $81.57. The $241.61 was slightly more than $20 a month on average, which would allow my to take off about one hour each month. My estimated dividend income for the coming year of 2017 is now up to $281.24 in my taxable and IRA accounts that I manage myself. I will not add in the estimated income from the 401(k) account at this point, because I have no idea how much it will be because of variations in the payouts that can be expected from mutual funds. If I estimated the same dividend income from the 401(k) in 2017; however, that would put my forward income at more than $360, or 18 hours when thinking of how much work I would have to replace in a given year at a wage of $20/hour. This is nowhere near enough to pay for my lifestyle, but its much more than the $0 that I was making just 18 short months ago.  I’ve updated my monthly dividend income earnings page to reflect my December earnings.

How was your dividend income in December? Feel free to let me know in the comments.  If you’d like to keep up with my progress, be sure to go to the top of the page and sign up for updates. Also, feel free to follow me on Twitter.  I appreciate any support that you decide to give. Happy New Year.

Disclaimers: Long SBUX, UL, MCD, KO, KHC, SO; I am not a financial professional. Information listed in this post does not constitute a recommendation to buy or sell. It is intended for educational and informational purposes only. Equities can increase or decrease in value, and losses up to and including all money invested can occur. Consult with a licensed professional before making an investment decisions. 

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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.

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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.

If you’ve found this article interesting, be sure to sign up to receive updates to the site at the top of the page. You can also follow me on Twitter.

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June 2016 Passive Dividend Earnings

Another month has come and gone, and I made some money in pajamas during June 2016. While I do quite a bit of work from home (or on the road) most months, my goal is to get a higher percentage of that income to come from passive sources. The biggest source of passive income that I’ve decided to work on is income via dividends. These payments from quality companies generally come in on a quarterly basis, and they provide me with additional capital to put toward additional stock in high-quality companies that I already own or that I have on my wants list.

My money can work harder than I can over time. I have to put in effort to earn money, but I have a limited number of hours in the day that I can actually work. My money can work day after day after day, 24 hours a day, 265 days a year. While I have a relatively small trickle coming in these days, I am planning to see this tiny stream grow into a rushing river of dollars in the future. It might take several years to get there, but if I’m able to continue on this path that I’ve started, I fully anticipate that my goals can be reached. The companies that I own paid me on several occasions last month, and without further ado, here is the passive dividend income that I didn’t have to work to earn in the month of June:

Unilever PLC (UL)                                $0.08

Wal-Mart (WMT)                                 $3.02

Kellogg (K)                                                $0.72

McDonald’s (MCD)                            $3.40

Royal Dutch Shell PLC (RDS.B)    $11.63

TOTAL DIVIDEND INCOME FOR JUNE 2016     $18.82

This dividend income might not seem like a massive amount, but it is a record for me. My previous high for a month was back in March, when I received $13.62 from my dividend-paying stocks. This was a 38% increase over just the past three months. This income brings up my total annual dividend earnings up to $61.61. I am now up to averaging a cool $10 per month in dividend income, and I’ve almost passed the $20 mark for a single month. I measure my progress by the number of hours of work that I could theoretically take off were I to replace work with passive income. My estimated annual dividend income at this point is up to $147.57, which is right around 7.5 hours were I to figure that I need to replace $20 per hour (after taxes and retirement contributions that would no longer come out). In June, I could have almost taken off an hour of work at this rate. My hope is that this will only continue to grow over time.

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.

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March 2016 Passive Dividend Income

The month of March has ended, and it’s one of my most favorite times of the month–time to update my monthly dividend income. My previous monthly record was just a whisker shy of reaching double figures (a Hamilton in US currency terms), and as the third month of the quarter seems to be the most popular for companies that pay out dividends, I was expecting to finally hit this level for the first time, about eight months after receiving my first dividend payment of a whopping $0.64 from Apple back in August. The month’s payments did not disappoint. Here they are:

Kellogg’s (K)                               $0.57

McDonald’s (MCD)                   $2.71

Royal Dutch Shell (RDS.B)      $10.34

TOTAL dividend income for March 2016:     $13.62 

Dividend income for 2016:                               $24.38

This total might not seem like much, but it’s money that I didn’t have to work for. It’s also $13.62 more than I was making in passive income just 8 months ago. Over time, this money should start to add up. My payment from Shell went toward DRIPping 0.23 shares in RDS.A. I’m not sure why it went toward the A shares as opposed to the B shares, but this additional purchase should add $0.86 toward my annualized dividend income, which is now estimated at $124.18. Dividend income is passive income, which is the best type of income. My other dividends are sitting in my Loyal3 account waiting to be deployed when I reach $10 or more so that I can diversify into another great company. This should happen next week after April payments from Coca-Cola and Wal-Mart.

During the month of March, I also added $25 purchases toward Apple and Wal-Mart stock in my Loyal3 account and 4 additional whole shares of AT & T in my TradeKing account. These purchases are additional building blocks toward financial freedom. You can open a TradeKing account here and receive a $50 bonus for signing up, funding an account, and making a minimum number of trades.  Some of my capital for stock purchases comes from my use of SwagBucks. Every time I get $25 in PayPal cash from SwagBucks, I transfer it to my bank and then one of my brokerage accounts. You can sign up for SwagBucks here. I earn money just for searching and watching videos, and it’s money I earn while simultaneously watching TV–definitely an example of maximizing time to earn money in pajamas.

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. Should you choose to do so, I thank you for your support.

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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.

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. Should you choose to do so, I thank you for your support.

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Passive Dividend Income for December 2015

The month of December is just about over, as is the year 2015. I started out the year with basically no expectation of passive income from dividends, and I’ve now deployed enough capital to get to the place that I expect at least $83 next year from dividends without adding a single dollar to what I’ve already invested.

I have been able to invest in companies that provide dividends on a schedule that ensures that I should not miss a month of getting at least a little bit of passive income going forward. Passive income is the best income, as I’m able to earn it every month while at work, while sleeping, and while lounging around the house. The companies that I’ve allowed to put my money to work have many employees that work around the clock and around the world to make money, a portion of which the companies are able to return to me each quarter.

A couple of the companies I’ve invested in have given me good news in the last couple of months with dividend raises, which means that my capital will pay out even more over the next year. McDonald’s raised its dividend payment from $0.85 per quarter to $0.89 a quarter, and AT & T raised its dividend from $0.47 to $0.48 each quarter. These raises are 4.7 percent and 2.1 percent, respectively. I was able to experience one of these raises during December, so without further ado, here are my passive dividend earnings for the month of December 2015:

Kellogg’s (K):                              $0.47

McDonald’s (MCD):                  $1.66

Coca-Cola (KO):                        $1.90

Royal Dutch Shell (RDS.B):     $5.64

TOTAL DIVIDENDS for 12/15 $9.67

This $9.67 in a single month is a new record for me, nearly doubling my previous record of $5.41 in November. Also, this dividend income brings my final total for dividend income for 2015 to $20.91. This might not seem like too much, but it is more than $0. It’s been said many times that the journey of a thousand miles begins with a single step, and I’m hoping that this $20 in 2015 will grow exponentially in 2016. Any income that I get for the first seven months of the new year will be infinitely better than the amount that I got in the first seven months of 2015, when I earned $0 in dividend income. No one knows which way the market will go in 2016, but I plan on deploying additional capital that will hopefully grow my passive income.

How much were you able to earn in passive income in December or in the year of 2015?

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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?

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Recent Stock Purchases

Last week, I decided to use some money that I’d come into to buy some more stocks with my Loyal3 account.  I had a total of $75 to invest, along with my first $2.62 in dividend income.  I’ve decided to reinvest dividend income so that I can keep the dividend snowball adding additional dividend income, which is a great way to passively earn money in pajamas. As I’ve stated many times before earning money from home is a great thing. The more dividends I can amass over time, the more money I will make in pajamas.

Because you can only purchase whole dollar amounts from Loyal3, this meant that I had a total of $77 to invest. I have positions in five companies through Loyal3, so I decided to pretty much invest an equal amount in each. The exception to this was my position in Kellogg (K), which I just opened with a $25 investment. Therefore, I had $15 going to McDonald’s, Wal-Mart, Apple, and Coca-Cola. I decided to reinvest my dividend income into Kellogg to help this investment catch up in terms of my total capital outlay. My purchases added the following amounts to my positions:

Loyal3 91815 purchase

While this might not seem like I’ve added a great deal to any of these stocks (and that would be a correct assessment), it nonetheless is just another brick in the dividend wall that should help with my expenses as I age. My goal is to supplement any pensions, 401k accounts, and social security payments that I might get. My additional estimated annual dividend income from each of these purchases are:

WMT: $0.46

MCD: $0.52

K: $0.50

KO: $0.50

AAPL: $0.27

Therefore, these small purchases of additional fractional shares of five large cap, blue chip companies add a total of $2.25 to my annual dividend income. My total expected dividend income from my Loyal3 and TradeKing portfolios is now up to $48.53. While this might seem like a pitiful amount of money, it takes time and invested capital to get this income up. Were I not to put any more capital to work in the next year, I should see a bit of an increase from dividend increases. As of now, I’ll average just over $4 in dividend income each month. However, my goal is to add to this as funds become available so that I can earn more money in pajamas because passive income is the best income.