Tag Archives: monthly dividend income

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. 

November 2016 Passive Dividend Income

Another month is in the books. November 2016 has come and gone. While I’m not terribly happy that the wind is kicking up from the north and bringing cold weather, I am happy that some great companies continue to provide me with money from dividends that I can deploy to buy more income. Over time, I hope to build a nice stash of dividend-paying stocks that could take care of a nice portion of my expenses each and every month.

One of the greatest things about dividends is the fact that they come in whether I work or not. I had a few days off for Thanksgiving, but the companies that I own continued to do their thing, earning revenue that will hopefully be turned into profits, that will in turn come my way in the form of additional dividends. I have made a few sales to pay off some debt over the past couple of months, so I did not get as many dividends as I would have expected in November.  Additionally, Starbucks, which usually pays out in the second month of the quarter, is going to be paying off in early December. I’ll still get paid, just in a different month than usual. In spite of these facts, I busted through the $20 number in a month for the very first time since I started this journey last year. Here are the two payments I received in November 2016:

Taxable accounts:

AT & T (T)                                                                    $7.01

IRA

Omega Healthcare Investors (OHI)        $18.30

TOTAL for November:                                   $25.31

As you can see from the listing above, I not only smashed through the $20 mark, I received a Jackson and a Lincoln along with some change (that’s a $20 and a $5). My $25.31 set a new record for my dividend growth investing history. It now brings my total dividend income for the year up to $141.48, which is well above the $15.08 that I had earned at this time last year. Additionally, I only earned $5.41 in November 2015, so I earned nearly five times the dividend income that I earned in the same month just one short year ago. That’s a pretty impressive increase, from my standpoint, as I would have to earn about $125 next year if I were able to duplicate this jump for 2017. I don’t think I’ll quite get to this point, but it would definitely be nice to achieve.

My estimated dividend income for the next 12 months is now at $252.49. This is more than $20 a month on average, which would allow me to take off slightly more than an hour a month with my estimation that I’d need to replace $20 an hour if I were to live solely off of dividend income.

How did your dividend income shape up for the month of November? Did you have a year-over-year increase? Let me know in the comments.  I have updated my monthly dividend page to reflect these payments.  Also, if you’d like to follow my progress on a monthly basis, be sure to sign up to get updates.

Disclaimers: Long OHI; 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. 

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.

August 2016 Passive Dividend Income

Another month has come and gone, and again, it’s time to look over the past month and figure up the passive income that I’ve earned from owning great companies that are willing to return some of the capital that I’ve invested into their success.

I’ve decided to invest in companies that pay dividends, as those companies that are able to increase revenues and earnings over time are also able to increase the amount of their dividends. This is an example of my having my money working for me. This was the first month that I’ve been able to compare my dividend income on a year-over-year basis, as I “earned” my first dividend payment in August 2015. I have earned in quotes because I earned the money that initially went toward the  investment, but I did not have to put in any additional effort to get this passive income. My dollars are working for me, and over time, they should be able to earn even more, hopefully to the point that my money makes more than I can.

I received dividend payments from four companies in August. I received a payment from one new company, as well. Without further ado, here is my dividend income from the month of August 2016:

Starbucks (SBUX):                           $0.18

Apple (AAPL):                                    $2.57

AT & T (T):                                             $6.94

Omega Healthcare Inv. (OHI): $3.60

TOTAL for August 2016:           $13.29

This dividend income brings my total for the year up to $83.40 for the year, which is more than $10 a month. Furthermore, this dividend income for the month was $4.11 more than the dividend income I received in May. This equaled out to nearly a 45 percent increase in just one quarter.  When looking at my dividend income on a year-over-year basis, I went from $0.64 in August 2015 to $13.29 in August 2016. This equals out to a 1976 percent increase in just one year. Obviously, this will not be likely for every year in the future, but it is a nice increase to say the least.

Another point that I’d like to make regarding the dividend income I received in August. I am able to DRIP my dividends in my TradeKing account. This allowed me to purchase 0.097 additional shares of OHI and 0.160 shares of T. My additional fractional share of OHI will add $0.23 to my annual dividend income, and my additional fractional share of T will add $0.31 additional dividend income. These are not huge increases, but over time as they add up, they will make a difference in my dividend income.

My current anticipated annualized dividend income $204.64 after having purchased some additional OHI in an IRA that I rolled a former employer-sponsored retirement plan into. That’s about $17.05 a month on average. I’m getting closer to being able to take an hour off each month (figuring that I need $20 per hour to replace working income after noting that I won’t be paying out nearly so much in taxes at that point).

My dividend income is definitely an example of earning money in my pajamas. The companies that I invest in are making money around the world at any given time of the day. How was your dividend income in August?

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.

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October 2015 Passive Dividend Earnings

Another month has come and gone. The cool mornings of October are turning colder into November. Christmas is just around the corner. All the while, I’m earning money without having to work for it. I’m working, but a growing portion of my income is coming from passive income, which is the best kind of income. I work to earn money, and then I put a portion of the money to work for me to create more income that requires absolutely no more error that making a few clicks in my brokerage accounts. My earnings to this point have been quite small, but they are growing. And they should continue to grow over time. I find it really exciting when dividends hit my account. They provide additional capital that I can put to work that can add to the process of compounding over the next couple of decades. Hopefully, they will add up to quite a bit of income by the time I hit retirement age. So, without dragging on any further, I’ll give you the rundown of my income for the month of October.

Two companies paid me dividends in October. They were:

Coca-Cola (KO) $1.61

Bank of Nova Scotia (BNS) $1.60

Total for October $3.21

Total for 2015: $5.83

October set a record for my short dividend income portfolio history. My earnings from KO went into a purchase of WalMart stock in my Loyal3 account. My shares of BNS are held in a TradeKing account that allows for automatic dividend reinvestment. My DRIP bought me an additional 0.029 share of BNS stock that should add $0.06 to my dividend income (should the exchange rate between US and Canadian currencies remain the same. I was only able to purchase $1.24 in BNS stock after a 15 percent hit to my dividend for Canadian taxes. Regardless, my dividend income is taking an upward slant over time, and November promises to be even larger than the $0.64 that I earned from Apple in August because I’ve added 10 shares of AT & T to my portfolio that will pay out in November as well. My portfolio now holds a total of 8 stocks that have anywhere between around $40 and $330 invested in them. Hopefully, I have enough capital available in November to add to my portfolio and my expected passive income going forward.