Tag Archives: Realty Income Corp

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

 

Passive Dividend Income for February 2017

Passive Dividend Income Builds Up Slowly But Surely
The month of February is not quite up, but I’ve already gotten all of my passive dividend income payments for the month.  I always enjoy looking back over the month that was and add up my dividend earnings. Dividends are my favorite form of passive income because they come in whether I have work or not.  As I’ve said many times before, passive income is the best income.

I own some great companies that pay me on a regular basis. These companies sell their wares around the world every day. They have workers who are dedicated to serving their clients, and I’m not one of them.  These workers show up to do their jobs when I don’t have to. I have weekends off, but companies like Starbucks (SBUX) sell coffee each and every day in just about every time zone known to man. This is a really cool concept that allows me to build wealth.

Passive Dividend Income For February 2017

I earned multiple payments in February 2017. Three companies and one fund paid me basically for existing. Without holding you in suspense any longer, here is my passive dividend income for the month that was:

Taxable Account:

Starbucks (SBUX)                                                   $1.12

IRA

Realty Income Corp (O)                                      $2.11
Omega Healthcare Investors (OHI)         $31.00

401K

JP Morgan Equity Income RF (OIERX)     $2.33

TOTAL dividends, 2/17                                   $36.56

By looking at my passive dividend income for February, I was able to earn $36.56. I like to compare my income on a year-over-year basis, and in February 2016, I earned $6.27. This was more than $30 less than my earnings just one year later, which means my passive dividend income grew by more than 500 percent in just one year. I have to say I’m happy with this result. However, I don’t assume that this will continue indefinitely.

It’s evident that OHI was my biggest payer for the month. I don’t really like the outsized income that I get from one company, so I’m hoping that I can diversify more so that my income is not so dependent upon one company.

When I add my January income to my income from February, I’m now up to $48.19 in passive dividend income for 2017. It was June before I passed this amount of income in 2016, so I’m definitely thrilled with this progress

Hours of Freedom Earned

I like to track how much freedom my dividend income provides me each month. I have a forward estimated dividend income of $322.95 for the next 12 months. This means that I now have about 16 hours of freedom built up for the next 12 months.

I argue that I would need to earn $20 an hour to maintain a similar standard of living to what I currently have. This figure is arrived at with the assumption that I would not be paying toward retirement or Social Security. Additionally, I would have fewer expenses associated with work like an occasional meal out and commuting.

16 hours of freedom is the equivalent of 1 hour, 20 minutes a month. If I look at my income from February only, it would have nearly bought me 2 hours of freedom. It’s not quite the 170 hours that I’d normally work for a month, but it’s a start.  I enjoy looking at the upward trend, however.

How was your passive dividend income for February? 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

 

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.

Smashing Through A Passive Income Milestone

Passive each Passive Income Milestone takes time

I was just online checking my forward dividend income today. I had neglected to put in a raise from Realty Income Corp that allowed me to smash past a passive income milestone. When I started looking at the dividend growth as a great option for building a stream of passive income over time, the idea that the companies that I own giving out regular raises was one of the top concepts that drew me to this strategy.

A New Passive Income Milestone

I input the raise from Realty Income into my spreadsheet (I’m an Excel guy). I have ten shares, which is obviously not an impressive amount. But the raise put me up over $300 in annual anticipated dividend income.

Admittedly, this is not a huge amount of money. I’m now slightly above $300 in my estimated income for the year. That’s just slightly more than $25 a month.

Figuring Passive Income In Hours Worked

Every month when I give a new passive dividend income report, I look at how many hours of work I could theoretically take off by replacing active income with passive income. Every $100 passive income milestone that I pass effectively gives me five hours of freedom, theoretically for life.

With $300 built up, I’m now at 15 hours if I figure that I would need $20 of passive income for ever hour of work. That’s 1 hour, 15 minutes every single month. I would not need to pay any income taxes up to nearly $73,000 of income if the income  is related to qualified dividends. There would be no Social Security taxes coming out. I would not be putting any money into retirement programs.

That’s quite a lot of money coming out on a monthly basis that I don’t even see. Therefore, my current standard of living would not change much, if at all, if I made $20 an hour.

Isn’t This The Slow Way To Build Wealth?

Some of you might wonder if this is the slow way to build wealth, and you’d be right if you think that it is.  Each passive income milestone seems to take a while to hit; however, this is basically the only way to build wealth.

There are tons of get-rich-quick schemes out there. They generally tend to cut wealth rather than build it. Flipping a house can quickly turn into a money pit if you don’t know what you’re doing. Borrowing money to buy pork bellies isn’t any better. You have a better likelihood of getting struck by lightning than you do of hitting the lottery.

Building wealth is kind of like the story of the tortoise and the hare. Those who try the get-rich-quick schemes might look like they’re getting ahead, but they’ll tend to wind up with less wealth than the steady plodders who put away a little bit of their income on a weekly or monthly basis.

I’m thrilled that I’ve smashed through this passive income milestone, but it’s hopefully just one of many more to come.  What milestones do you use to track your progress? Let me know in the comments.

Also, if you’d like to keep up with my progress, be sure to sign up to get updates in the email box at the top of the page or follow me on Twitter.

Disclosure: I am not a licensed financial professional. Be sure to perform due diligence making any investments. I intend my posts for educational and entertainment value only.

Image Credit: African Spurred Tortoise by Photographer 2008, via Wikimedia Commons CC BY-SA 3.0

Earning Money in Pajamas With Real Estate

One of my favorite sayings is that passive income is the best income.  Passive income is money that you don’t have to put any effort toward earning. It’s money that you get just by waking up in the morning. Passive income would definitely be a form of earning money in pajamas. You might wonder where that idea of earning money in pajamas and real estate investing would come in.

You Can Make Money in Real Estate

When most people think of investing in real estate, they think of the common slumlord who owns a property or ten that they bought to make some money of some poor, unsuspecting college student or fast food employee (sometimes these demographics are one and the same).  This is definitely one way that people have made money in real estate–buy a property with other people’s money and then have your renters pay the loan back. After the property gets paid off, the rent that hopefully continues to come in becomes a solid cash flow, or if you don’t want to continue to deal with renters, you can sell the house off and pocket the cash. At least this is how it’s supposed to work.

Real Estate image. Wikimedia Commons via GregoryJ77, Public Domain

You Can Make Money in Real Estate, But…

Many landlords find that they can make money at times, but there is the issue of finding people to rent out the property, or more importantly, the right people to rent out the property. Some renters will stiff their landlords and fail to pay on a regular basis. If you’ve bought the house and still owe on it, this lack of cash flow from derelict tenants can lead to negative consequences for your budget. Then, if this problem becomes habitual, you might find that it’s necessary to evict the renters. I don’t know about you, but getting the courts involved does not really sound like passive income to me.  Furthermore, renters are less likely to treat your property with care. Many landlords have found that they have to clean up big messes when their renters move out, be it voluntarily or in a more forcible manner. Some of this cleaning might require some  light construction work. I’m not terribly handy, nor do I like cleaning up messes. How then did I come to decide that I’d like to become a landlord?

Enter the REIT

As I’ve been noting in recent months, I’m investing in equities in an attempt to slow down how much I have to work for money as more of my money goes to work for me on a daily basis. If landlording sounds like a lot of work, it doesn’t have to be. I’ve decided that my real estate investments (at least outside of my own personal residence) will come through Real Estate Investment Trusts, otherwise known as REITs. These companies own properties that they then rent out to make money. The REITs that I’m investing in directly have businesses that tend to sign multi-year leases with annual increases built in as renters. I’ve owned some shares of Omega Healthcare Investors (OHI) for a few months, and I just pulled the trigger on 10 shares of Realty Income Corp (O) this past week.

Both OHI and O pay out healthy dividends at this point. They are also on sale from the levels that they were at in the summer. Additionally, the dividends that these REITs have been paying have also been growing on a regular basis. Where most companies who increase their dividends on a regular basis do so annually, Omega Healthcare Investors has been increasing its dividend on a quarterly basis for the past few years, and Realty Income has been announcing multiple increases each year. Additionally, Realty Income pays out every single month, much like a property that I’d own outright.  That’s 12 payments a year. I’m planning to build up the position over time, so my income should grow from a small beginning.

I’m getting a dividend yield of nearly 4.5 percent on O and nearly 7.5 percent on OHI. I don’t have to find renters. The management of these companies do that for me. I don’t have to clean up for tenants who move out. The companies will do that for me. Finally, I don’t have to evict anyone. The companies will do so should it come to that point. I don’t have to do anything related to management of the property. I get all of the benefits of being a landlord (as well as some of the risks) without actually having to deal with most of the hassles that come with the territory. Of course, there are risks with any investment, but I feel that the passive income that I’ll hopefully be earning while sitting in my recliner or in my office for years or decades to come will pay off big in the long run.

Disclaimer: Long O and OHI, I am not an investment professional. Information on this site is intended for educational/informational/entertainment purposes. It is NOT a recommendation to buy. Please do due diligence before investing in anything at all. 

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