Erasing Debt

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.

Erasing Debt

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.

Erasing Debt

April 2016 Passive Dividend Income

Another month has come and gone. Today is the first day of May, and on this past Friday, I got my last dividend notification for the month of April. I’m now about nine months into the dividend growth investing journey. My goal is to build up passive income over time so that I can enjoy a reasonable retirement in a couple of decades. I believe that long-standing dividend payers who have solid cash flows should be reasonable investments for the long term.

I added a couple of small positions over the past month, but neither of these has paid out a dividend yet. I started pooling my dividends in my Loyal3 account in January, and I reached $10 early in April. I then immediately put that $10 to work in a very small starting position in Unilever PLC. My hope is that my growing stream of dividends will enable me to add to this small start each quarter to start with. As my core positions add more in dividend payments, I plan to increase the frequency of these purchases in UL.

I also cashed out some more funds from Swagbucks and started with a $25 position in Starbucks (SBUX). My hope is to alternate Swagbucks payments and build up some smaller positions. Starbucks does not pay a huge dividend at this point, but the company has been increasing its payout rapidly over the past few years. Additionally, the company is still in the growth phase, so I’m hoping that my eventual yield on cost is much higher than my current ~1.4 percent.

I received three dividend payments during the month of April, so without further ado, here they are:

Coca-Cola (KO):                         $2.95

Wal-Mart (WMT):                       $2.48

Bank of Nova Scotia (BNS):     $3.47

Total dividend payments for March:   $8.90

Dividend income for 2016:                      $33.28

My payment from BNS was subject to a 15 percent withholding tax, so only $2.95 went into my DRIP. This purchased another 0.057 shares of BNS, and it will add about $0.12 to my annual dividend income, although this will vary because of foreign exchange rates. I put the other dividends toward the aforementioned  purchase of Unilever. My current forward dividend income for the next 12 months should be right around $131.67 (although this is possibly a slight bit off because of the BNS forex issue). This way more than the grand total of $0 that I expected in yearly dividends at this same time last year. Earning dividends is truly earning money in pajamas. I do no more work after earning the capital. Then my capital goes to work for me.

If you want to keep up with my progress or learn about my other life hacking achievements and goals, be sure to sign up to follow the blog.

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. This post mentions Swagbucks. I usually get $25 worth of PayPal cash each month from this site, and I use it to buy more stocks that then earn me more dividends that can then go and buy more stocks that then pay more dividends…and so forth. Should you choose to sign up, I thank you for your support.

Erasing Debt

I’m Making More Money with No Effort!

Last week was a great week on the earning money in pajamas front. As I preach over and over again, the best income is passive income, because it’s the me of today benefiting from the decisions that the me of ten years ago or a few weeks ago made. Not one, but two, companies in which I hold a small stake decided to increase their dividend payouts–on the same day, no less. This was a doubly great day. Now, I don’t profess to have a massive stash of income-producing stocks, as I’m just getting started on this dividend income journey, but regardless, any time that I get a raise for any reason whatsoever, I’m pretty happy.

Most of my raises have come from doing a good job as an employee or because I’ve changed jobs. This raise came from doing basically nothing other than investing in companies that have done a good job of building up massive cash flows that are enough to pay off a portion of the cash flow to their investors on a regular basis. My hope is that over time, I can build a growing stream of dividend income that allows me to work less as I get older.

Here are the dividend increases that I got last week:

Coca-Cola increased its quarterly dividend from $0.33 per share to $0.35 per share. This will add $0.58 to my annual forward dividend income based upon the slightly more than 7 shares that I currently hold. This is not a massive increase, but should I be able to add capital on a regular basis to where I have say 100 shares, this would be compounded to a much bigger benefit. The goal is small additions to my passive income stream compounding into a much larger income stream in the future.

Wal-Mart also announced a dividend increase. This one was only about 2 percent, as it was $0.01 per quarter. This added $0.18 to my annual dividend income based upon the ~4.5 shares that I currently hold. Many people would look at 18 cents and think whoop-de-doo. That’s nothing. They would be right, but 18 cents this year added to more capital, buying even more stock, and paying more dividends that increase by another penny or two on a quarterly basis can really add up over time. Warren Buffet did not start out a billionaire. I just read last week that he’s amassed 99 percent of his net worth after the age of 50. That’s pretty amazing to say the least. I’m hoping to amass quite a bit more than 99 percent of my net worth after age 40.

I have some money in the hopper that’s ready to buy some more stock through Loyal3, and I’m about to reach enough Swagbucks to get $25 more through PayPal that I can then use toward another stock purchase. I usually make my money with Swagbucks by letting videos play while I’m vegging out. It’s not a massive pile of cash, but it’s added up to nearly $1,000 over the past 3 years at a rate of about one $25 PayPal increment each month. You, too, can sign up for Swagbucks with my referral link and start earning toward cash through PayPal.

I’m letting my dividends grow in my Loyal3 account until they reach $10, and then I’m going to open another position with only my dividends. I’m also planning to add capital on a regular basis to increase my dividend payouts. It’s pretty exciting stuff to say the least. The only question is what new company to start investing in. Onward and upward as I attempt to make more passive income.

Disclaimer: I am not a licensed financial professional. This post is intended only for entertainment/educational purposes. Please consult with your financial advisor before purchasing securities.

Erasing Debt

January 2016 Passive Dividend Income

The first month of the year ended yesterday. I’m working on building up a passive income stream that can provide additional funding when it comes time to retire in addition to Social Security and any pension funds that I’m able to get. Dividends that consistently grow are a good sign that a company has adequate income to build their business and provide monetary benefits to its shareholders.

In the past six months, I’ve been able to build small positions in eight different companies that pay dividends each quarter. In January, two of my companies paid out dividends to me. I own a few shares of Wal-Mart (WMT) stock in an account with Loyal3. I also own a few shares of stock in the Bank of Nova Scotia (BNS) in a TradeKing account. The former pays cash into my account, while the latter allows me to automatically reinvest my dividends. This means that my BNS dividends should grow each quarter (at least in Canadian funds) without my doing anything else. I earned infinitely more in dividend income this month than I did at this time last year, as I was not investing in dividend-paying stocks. Any income whatsoever is an improvement over last January’s total of a big, fat goose egg. Without further ado, here is my dividend income for January 2016:

Wal-Mart (WMT)                            $1.48

Bank of Nova Scotia (BNS)          $3.00

TOTAL for January:                    $4.48

My BNS dividend purchased an additional 0.065 shares of stock in the company, which should add approximately $0.14 to my dividend next quarter given a similar exchange rate. I’ll be looking to add additional shares as funding comes available.

My $4.48 is not a massive amount of money, and it would allow me to take about 15 minutes off if I were to try and use my passive income to replace active income at this point. However, it’s a start, and as it’s been said many times before, the journey of a thousand miles begins with the first step. I’ve taken more than the first step, but I’m early in the journey and hope to add shares and passive income going forward. At this point, my forward dividend income is nearly $109. Hopefully, this will grow to $250 or more by the end of the year.  I’ve added this income summary to my monthly dividend income page.

Erasing Debt

Recent Stock Purchases for Passive Income

I’ve had the opportunity to make a couple of purchases this month that have added passive income to my forward dividend income. These two companies have been hit hard by the market in recent weeks, in spite of being major cash cows. These two companies are Wal-Mart and Apple. My goal is to get $300 of capital invested in all of my companies, and my recent purchases in Wally World have gotten me to this position. All of my purchases were through Loyal3, so I incurred no transaction fees on these purchases.

Overall, I made two separate purchases in Wal-Mart (WMT) that deployed enough capital to buy an additional 1.5405 shares of the retail giant. With the current dividend payment of $1.96 per share, this adds a total of $3.02 of forward income. Of course, Wal-Mart is likely to announce a dividend increase within the next couple of months to keep its streak of around four decades of dividend growth in tact.

My other purchase was a small $12 deployment into Apple (AAPL) stock. This capital purchased only 0.1120 shares of the tech giant, but it will add an additional $0.23 in forward annual dividend payments based upon the current dividend of $2.08 per share. Again, it is likely that Apple will announce a dividend increase at some point in the coming year. Previous raises seem to come with the May payment if recent history is any indicator.

Combined, these purchases will add $3.25 to my forward dividend income. Along with a recently announced $0.01 per quarter raise that was announced by AT & T, my estimated forward dividend income for 2016 is up to $83.77 (about 4 hours of freedom based upon an estimated $20 of net income per hour of work). This should go up as I make additional purchases during the next year. My hope is to get my estimated income for 2017 to more than $200, but this will remain to be seen as I come into additional capital to deploy or as companies might pull a Kinder Morgan and cut their dividends. (I was fortunate not to have bought any KMI before the drop, and I’ve not bought any since.) I believe that my current stable, with the exception of Royal Dutch Shell should be safe, but the market and profits can shift pretty quickly. My next post will update my final dividend income update for 2015. Here’s to a great 2016.

Erasing Debt

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?

Erasing Debt

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.