My First Ever Dividend Income Extravaganza!
Welcome to the first ever edition of my Dividend Income Extravaganza!
Send the kids away, break out the champagne, and get ready to celebrate! It’s dividend time!
I mean, who doesn’t like getting paid for zero effort? I am sure someone out there doesn’t, but it isn’t this guy. (picture two thumbs pointing towards me) So let’s get this dividend party rocking.
During the entire month of July, I was paid $48.02 in dividends!
Oh yeah, I know you are jelly! ;P
Well…hmm….err... maybe extravaganza is a bit of an exaggeration. But hey, it’s a start!
Since I roll all this money back into my investments, as well as add more fresh capital, it is bound to grow as the months and years go on.
That’s what it is all about. Brick by brick my family’s financial security is built. Each time I buy a few more shares, the wall grows and protects us a little bit more.
While I am not completely focused on dividend paying companies, I do love receiving those little paychecks in my accounts.
That $48.02 divided by the 31 days in July equals an average daily paycheck of $1.55.
Imagine someone handing you $1.55 every single day in July. That’s basically what happened to me.
I’ll take it and get more next time. Consistent reinvestment results in exponential growth, as my study on the Coca-Cola investors of Quincy, Florida has shown.
DIVIDENDS
Firstly, my IRA with Motif Investing brought a combined dividend total of $14.99. I won’t list each stock individually as I have just a few shares or fraction of a share with a bunch of different companies thanks to their ‘basket of stocks’ way of doing business.
If you don’t know, with Motif Investing you can purchase up to 30 stocks in a ‘basket’ for $9.95. It’s a unique idea and I wanted to try it when they first came out.
Medical Properties Trust (MPW) – I purchased these shares in my rIRA recently and this is the first dividend since my ownership. $0.24 per share gave me the largest share of July’s total - $29.28.
Air Lease Corp. (AL) – While the dividend yield is small at just 0.75%, it has been growing at a great rate. Its 3-year dividend growth rate is 36%. $0.075 per share gave me $2.85.
W.P. Carey Inc. (WPC) – Lately WPC has been doing half cent dividend raises every quarter. Is it going to be that way going forward? Something for investors to count on like clockwork? Time will tell. $1.00 per share made me $6 richer in July.
CubeSmart (CUBE) – This self-storage REIT paid me $2.70 for owning 10 shares.
STAG Industrial, Inc. (STAG) – This monthly paying industrial REIT gives me $1.87 or $0.1175/share.
General Electric (GE) – I have one lonely share of GE in my Robinhood brokerage account, mostly to watch it. Back in 2015 I asked my wife what companies she wanted to invest in and GE was one she told me. Ask her today and she will say she never said that. GE has taken a bit of a plunge over the past few months but still pays out $0.24 in dividends per share.
New York Mortgage Trust (NYMT) – This REIT hasn’t been managing itself very well and trimmed back the dividend by 4 cents/qtr this year. I have two shares. I bought them as a demonstration to my neighbor, showing him that Robinhood has zero commissions. They threw another $0.40 on the pile. (Check out my Robinhood review HERE - There is a link to get a FREE stock for signing up, which is free too.)
Disney (DIS) – Disney pays their dividend twice a year instead of the more common quarterly distribution. While their dividend rate of 1.43% is below average, they have a small payout ratio of just 26.5%. This means that the dividend is safe and likely to be raised. Old Mickey Mouse paid my family $4.68.
Nevsun Resources LTD (NSU) – This small mining company used to pay $0.04 per share/qtr but recently cut the dividend back to $0.01. I’m fine with that though. Nevsun is a debt-free, profitable copper & zinc producer from operations at the Bisha mine in Eritrea and the Timok development project in Serbia, which it acquired last year. It ended last quarter with $167 million in cash and zero debt, giving the stock a current yield of 1.51%. Not many companies in this sector can produce positive cash flow while debt-free and starting up a brand new mining site.
They paid me $0.60, but after foreign taxes, I net $0.51.
CONCLUSION
Once I have a few of these dividend income reports I will have a baseline for comparison. It will be useful to look back and actually see the growth.
$48.02 is just the start of something extremely powerful - passive income!
August will be a big one for the dividend income. At least it will be for the amount I have invested.
You will just have to check back next month to see how nice it’ll be.
Til then!
This post originally appeared on my blog - Doubling Dollars.
Passive income, whether its via dividends, curation, ponzi (gulp), is a lovely feeling. I'm glad its working out for you already. Are you planning on re-investing and growing the pot?
I have earned enough in my rIRA that I recently purchased 4 shares of OHI. If the dividends come in through Robinhood or Motif Investing they are added towards the next purchase I make.
No matter what they are always reinvested. Gotta keep that snowball rolling.
Excellent. Yes indeed, keep it rolling for a decade or 3 and watch your financial worries melt away :)
Congratulations on your free dividend. Hope you don't mind sharing your dividend with me. Hahahahaha. Cheers.
Hey @yaanivapeji - you can have a bit of my Steemit dividend! Here's an upvote.
Oh. Lovely. Thanks. Much appreciated.
Awesome stuff, my bro! The way you approach your goal of financial freedom is strategic and mindful. The sum of all parts, if you like. Whereas most people just solely focus on the end result, you strive to put all the pieces of the puzzle in place and let them fit together naturally.
Intelligent, resourceful and simply brilliant. What a pleasure to know you, my brother and thank you for all your invaluable advice. Fantastic post! :)
Congrats man! Sounds nice. :) My mom used to try to get me into investing but I never did, maybe I should still think about it in the future! Though I just don't really have the funds to do much, but if I do in the future I'll probably send you a message and see if you can give me any good pointers.
Well, investing is important but the most important thing is to be out of all high-interest debt. You don't want to be paying credit card type interest rates, so make sure your financial house foundation is solid before you build your investments. Send me a message anytime, I love talking about investments.
Word! Thanks man. And I agree. I'm not in any debt yet and I've done a good job staying out of it, but I need to start bringing in more income before I can feel comfortable investing the time to learn and earning money I don't have yet to invest. But I have a good feeling about things changing for the better, so I'll definitely send you a message if/when I get to that point. :) Thanks.
The lesson is here in the post. START now. Start small. Squirrel a little away each month or each quarter or each time you have a tenner spare. Then find a low cost way to invest it so somebody else is making your money work.
Perfect timing - my next post about Investing Strategy is going to start at the beginning of the Investing Journey (mine). My last one set the framework - see it here http://mymark.mx/BehindTIB4 - the link goes though my own URL link thingy to a Steemit post. It is called Behind TIB because I write up all my investment activity under #tib tag
I might just add Dividends as a category. I just got a tidy dividend on a stock that nobody in their right mind would have bought when I did - Greece. Country is bankrupt and I got a 1.97% dividend (not the yield because it pays twice a year)
I would love to draw on your real life experiences too
Which Greek stock was it?
I checked out your article, it was a good read.
Earlier this year I transferred 70% of my retirement index funds to international allocations (Europe, Asia, a little S.A.). It has been good so far.
I bought an ETF that tracks the Greek market listed in Paris (GRE.PA). There is one listed in US - ticker is GREK. My portfolios are heavily weighted away from US to Europe, Japan and SE Asia. I do have big bank and insurance exposure in US.
Seems dividend is a good way for investment , its more safe for investing in stock market.
Dividends are great, but don't focus just on them. Too many old companies that are not increasing revenue still have lots of investors because they pay dividends. It can be true that sometimes the safety of dividends means you are missing the opportunity of growth. In the long run it can hurt your investment potential. Try to find balance.
Yeah man! Speaking my language :-) Keep growing it, dividend crazy train.
Haha, this money would be in a rental house if I could find one that the numbers worked on! In the meantime, my brokerage gets that cash.
Yeah, finding satisfactory numbers in my area is super difficult right now. Ironically, I posted yesterday a video using my property calculator and the property I analyzed was in South Carolina.....some numbers work there pretty nice.
This is gold standard material.
Passive income is the way to go :)
That it is! You chill while your money works.
Has anybody spoken with you about leasing your Steem Power? I'd pay you 10 STEEM per week if you delegate 10,000 SP to me. If you delegate it, I only get the curation voting rights - you still maintain control of the witness voting and the "appreciation" due to inflation. It appears you're only earning a quarter of that in curation right now. You like passive income? I can help you get more! Let me know.
I have heard/seen of this and am intrigued... :)
Get in touch with me on steemit.chat and let me know if you have more questions!
Thank you for Sharing @getonthetrain ...Blessings