In each progress review I will list a summary of all dividends I received, the rental income I received, and any purchases I made from that particular month.
This monthly report covers August 2016.
I hope you enjoy these posts and that we can learn how to grow our passive income streams and build real long-term wealth together!
This really was a great month for me, for which I am very thankful again for multiple income streams. Read More to see how I earned $658.05 this month in passive income,
Dividends Received
I received dividends from four companies this month:
Magellan Midstream Partners, Amerigas Partners, HCP Inc., and Prospect Capital. Listed below are the details for each:
Total Dividend Income Received: $260.05
Rental Income Received
I currently have two active rental properties, my Missouri Rental and my Colorado Rental. Listed below is the cash flow they provided this month:
Total Rental Income Received: $398.00
Thoughts On This Month
This was a relatively good month for dividend income, and my rental properties were quiet this month as well with literally zero work required. It was great to essentially do no work and still receive over $600 in passive income. Praise the Lord! That equates to right around $21 a day. Very cool.
**From the two above rentals, I also experienced an 'equity paydown' total of $934 which is not accounted for in the above cash flow numbers. This is another reason though why rental properties are incredible investments, which I talk more about in my PID's Mortgages page and in my individual properties' pages. Once my North Carolina rental becomes active, this number will increase to over $1200 per month.
Therefore, in summary for the month, Total Passive Income Received: $658.05
Purchases
I finally put my cash position to work and bought 87 shares of Wells Fargo (WFC) at $48.60.
I thought I could get it in the $47s (see my 'Considering Wells Fargo' article), but I missed the opportunity (it was there for a few days) and after that the stock seemed to be stabilizing around the mid 48s, so I thought I had to pull the trigger. With the potential upcoming Fed rate increase (in my thinking) benefiting bank stocks, I decided I would be happy with a range near the entry price of $48.50. I still expect to see a solid total return in the future as the stock approaches around 60, I believe, in the near term (next 1-2yrs). We will see what happens!
I thought I could get it in the $47s (see my 'Considering Wells Fargo' article), but I missed the opportunity (it was there for a few days) and after that the stock seemed to be stabilizing around the mid 48s, so I thought I had to pull the trigger. With the potential upcoming Fed rate increase (in my thinking) benefiting bank stocks, I decided I would be happy with a range near the entry price of $48.50. I still expect to see a solid total return in the future as the stock approaches around 60, I believe, in the near term (next 1-2yrs). We will see what happens!
Overall, this was a great month for my passive income portfolio. With the addition of this month's income to my Progess Tab I now have earned $4762 this year in passive income. With only 4 months left in the year, I am not even at the halfway mark yet for my primary passive income goal. But, do not doubt! I still believe I can reach my goal of $10,000 for the year. Watch for September and December to save the day (hopefully!). See all goals here.
As always, I appreciate your thoughts and insight.
Thanks for reading,
Passive Income Dude
Passive Income Dude
Awesome month. Keep it up. Someday I will get a rental
ReplyDeleteThanks Dividendsandhobbies, let's talk about rental properties. Literally in about 3-4years I anticipate incredible passive income, and mostly from rental property, not dividends. We will see, but the returns in real estate are so much bigger than equities/bonds.
ReplyDeletePID,
ReplyDeleteNice job this month! I own HCP as well, and enjoy receiving the dividend no doubt. Also - the Wells purchase should do you pretty well in the future, keep it up!
-Lanny
Hey Lanny,
DeleteThanks for stopping by! I love your guys' site so it is an honor to have you comment on mine. HCP has been great for me and I'm hoping Wells will be as well (pun). Thanks!
Great month for passive income earned from various sources. I see we have HCP in common and I used to own APU a long, long time ago. Also nice to see the buying of dividend stocks continuing even as the market has reached all time highs. I also added to my WFC in recent days. Just a nibble, but an add nonetheless. Thanks for sharing.
ReplyDeleteHey Keith, yea HCP and APU have been great for me. Glad to see you have confidence in Wells Fargo too, that's encouraging to see that there are a group of us perhaps seeing some value there.
DeleteAs for the multiple sources, that is my goal for sure. I expect really low equity returns for the near term, so I am trying to switch to real estate. Thanks for stopping by,
That's a solid month. How much effort do your rentals take. I assume that's FCF you're showing there above any expenses you have? Do you have a property management company that does everything for you or are you actively involved in managing them?
ReplyDeleteHey Timeinthemarket, yea the numbers are show are cash after all expenses, and I mean ALL (principle, interest, taxes, insurance, prop management, maintenance, etc). For my two properties I have property managers in place. So I try to describe how much 'work' I do each month on a month by month basis. This month was literally zero work, no phone calls, emails, or anything. For my North Carolina Property, I think I will try to manage that one myself. Since my other two properties have management, there is very little/if any work required each month. I pay them to do that. Thanks for stopping by,
Deletenumbers I show*
DeleteGreat updates. I like the healthy mix of dividends and rental income.
ReplyDeleteThanks IH. We will see how this progresses over time,
DeleteNice work man. Dividend income and rental income, that's a good combination.
ReplyDeleteThanks Tawcan! It's an honor to have you comment on my site! You're famous in the dividend blogger community! To your comment - I think dividends and rental income will be my two primary passive income streams that I try to build going forward. Take care!
Deletecongrats on a nice passive income. I only keep truck of my dividends, not rental income but it's so interesting how you have rentals in two different states. Pricing on our area keeps going up, maybe I should start looking into other states as well. Best wishes
ReplyDeleteThanks Happy and Healthy Girl :). I intend to have more rentals in even more states someday. The Army kind of forces it for us, but I also think there is something to actually hedging your geographical real estate risk, so I think it may make sense to own in more than one state. Thanks for stopping by!
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