Yes, 1/3 of the year has passed us by *finger snapping*, and with April dividends and rental income recorded, I have my first four months of passive income received and documented! I feel like a big first step has been taken on my journey settling into financial independence. It feels great. It’s the first year under president Trump, and despite some celebrities are saying that they’re going to move to Canada, it looks like we’re all still here :). All in all, I feel this year was a great success as my first year of recording both dividend and rental income as passive, taking the fund away from the dividend growth portfolio and pouring it in rental property. That translate to April’s dividend taking a huge cut again for the fourth time this year. But in turn, the passive income is exploding to a new level. This is the point where I can start to see how passive income can replace my monthly expense. April was a big success. **Note, this income doesn’t count the 4-plex income that has putting me at financial independence state, this is just extra income that I’ll use to reinvest into the stock market**
I hope these monthly passive income reports provide inspiration for any investors out there that are just starting out. It’s easy to see these payments rising month after month and it shows that it’s possible to one day pay for monthly expenses with dividends, which would provide an investor opportunities and freedom to pursue other interests than full-time work. Without further ado:
Dividends from 4 companies and $0.02 in interest from cash: $33.55
|04/28/2017||Interest||BANK DEPOSIT SWEEP 042817 2,195||$0.02|
|04/19/2017||Dividend||FOXA TWENTY-FIRST CENTY CL A 041917 30||$5.40|
|04/17/2017||Dividend||FCPT FOUR CORNERS PROPERTY TR INC 041717 4||$0.97|
|04/17/2017||Dividend||STWD STARWOOD PROPERTY TR INC 041417 20||$9.60|
|04/12/2017||Dividend||DEO DIAGEO PLC SPONSORED ADR NEW 041117 15||$17.56|
Income from Rental Properties
I consider these properties as *passive as I don’t manage the one in the midwest, and the commercial property doesn’t require much involvement from me. I do have to do some fixing here and there for the residential half of it. I’ll talk more about this later.
- Income from Midwest Rental the $77K investment (This is after insurance, maintenance, and taxes): $700
- Income from Commercial Rental: $2000
- Income from 1 of 2 unit: $1000
April Total: $3733.55
So far in 2017 total: $9913.13
- January: $720.58
- February: $1710.00
- March: $3749
- April: 3733.55
If I leave my investments alone and included my take home income from last year, my portfolio would worth $450K, I would have generate $18,000 with 4% yield. But my yield was around 2% so it would have only be $9,000. So, by shifting my investment, so far this year income is beating last year dividend income.
This month income of $3733.55 is noticeably higher than the $141.29 in dividends I received in April 2016. That’s a 26X increase over YOY. That, right there, is great progress, and I hope I can keep up similar levels of success as I go!
I was able to cover just over 250% of my expenses (check out how I kept my lifestyle from inflating) this past month through the power of compounding interest/dividend/passive income. It’s really great to know that I was able to cover a 250% of my monthly expenditures by way of complete passive income. The progress of dividend growth investing is real and tangible. The market can decide to mark up or mark down the value of a company day by day, but the dividends and rental income will still roll into my brokerage account just like usual. Passive income are reliable just like my expenses, and that’s one of the reasons I plan to use this strategy as my income generator through early retirement. I either use dividend income to continue to reinvest to offset old age expenses or if one day I’m tired of managing property, dividend income will serve as my main source of income. It’s funny when my income is now come from 6 businesses rather than just relying on one company (my job). My job which there is always a risk of getting fired or layoff at anytime, but with pay checks coming from 6 different sources, even if I don’t receive pay from 1 or 2, I’m still largely unaffected. That’s the beauty of dividend investing strategy.
**Note: This expense list is a little outdated, as I’m now married to Mr.W. His expenses is way higher than mine. However, taking into the consideration of we share the same house expenses like: Housing, Cable, utilities are the same. Only added, his travel, medical, eating out, clothing, and entertainment expenses. I might update this Expenses post in the future posts.
With the a third of the year behind us, I’m now four full months into one of my goals to generate $50K in passive income during the year. The year is 33.3% over and I am 20% on my way to completing my primary goal. I’m a little behind. I need to step up to get my other empty unit rented. I might have to revise my goal.
I’ll update my dividend income page to reflect April passive income.
How are your dividend/passive income tallies progressing? Everything progressing the way you had planned?
**The young leave leaves in the pictures are the tea leaves from my garden which I’m going crush to make green tea powder. If successful, I can make green tea cake, and million layer green tea flavor crape cake. LOL 🙂 If you don’t see future pictures, that means I wasn’t successful at the baking business. Wish me luck! … And pray for Mr.W’s stomach … hhehe
….. PS: Mr.W if you’re reading this post please don’t die from laughing. I still need you to try the cake first.