November Side Hustle

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

 

November Side Hustle

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 Side Hustle

May 2016 Passive Dividend Earnings

It’s again one of my favorite times of the month–the time that I get to recount my passive dividend income that rolled in over the past 30 (or so) days. The month of May is over, and I again made some money while working on my day job and while sleeping at night. My dividend income was already ahead of all of last year at the end of March. April and May have just added to this amount.

While the amount is not terribly impressive, it’s growing over time, and that’s my goal. My goal is to build up a growing stream of passive income that allows me to handle many of my expenses when I get closer to retirement. Pennies today will grow to dollars tomorrow, and then into hundreds in a few years. My current forward annual dividend income is estimated at a total of $142.90. During the month of May, I was able to earn the following dividends:

Apple (AAPL):                               $2.24

Starbucks (SBUX):                     $0.09

AT & T (T):                                      $6.85

TOTAL for May 2016              $9.18

This dividend income from May brings my annual total to $42.46, which is well above my $20.91 total for all of 2015. I’ve currently more than doubled my annual dividend income.  I earned my first dividend from Starbucks in May, and I was able to add to both my Apple and AT & T payment from February. My dividend from AT & T was reinvested into 0.175 additional shares of the telecom giant. This DRIP will add $0.34 to my annual dividend income. I did not buy any new companies in May, and I am currently invested in a total of 10 companies.

My dividends from May were $2.91 more than my payout in February. This was an increase of 46 percent in just three months. I did not have a dividend payment in May 2015, so my year-over-year increase is not available. This comparison will start to be available in August.  The growth in my passive income is really exciting. I’m looking forward to the day when I can earn hundreds every month from my recliner. How did your dividend income look for May?