April 2016 Dividend Update

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Well, wouldn’t you know it, it’s that time again!

We have completed a third of 2016, and I could have sworn Mrs. TOL and I were yelling “Happy New Year!” last week!  Nevertheless, time waits for no man, so the Dividend show must go on.

For the month of April, I decided to try out a new trading platform, Loyal 3.  I first learned about this platform from the various bloggers who have holdings with this company.  For those who may not know, Loyal3 is a trading platform that allows you to trade for as little as $10 and gives the buyer the option of purchasing fractional shares.  However, this platform is very limited in the companies one can invest in, as they have partnered with about 70 companies.  There are several investment grade companies, however, and I decided to give it a test run.  We’ll see how it goes!

It is now time for our favorite subject – PASSIVE INCOME!!!  This is the time to tally up how much money my money made, how much I earned without doing anything to earn it.  It’s about planting a single seed into the ground and watching it yield fruit every season.  It’s a way to TRADE OUR hectic work LIFE for a much simpler one.

Here are the numbers of our passive income for the month of April:

$6.00 – Wal-Mart (WMT)

$1.26 – Main Street Capital (MAIN)

$5.62 – PepsiCo (PEP)

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$12.88 TOTAL APRIL DIVIDENDS

0.00 REWARDS, APPS

5.26 ONLINE SAVINGS ACCOUNTS

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$18.14 TOTAL APRIL PASSIVE INCOME

April passive income was pretty impressive, given the fact that there are far less companies that pay dividends in the first month of every quarter.

Following is the brief breakdown of each category:

Dividend Income:

For April, our dividend income was $12.88.  This is an increase from April 2015 of…$12.88! That’s right, we received not a single, shiny penny from dividends in April 2015.  My, what a difference a year makes!  It’s pretty bad when my 4-year-old son made the same amount of dividend income as daddy did!  This was pretty much expected as we began our journey in February, purchasing my first share of a dividend stock.

Since April is the 1st month of the quarter, I will compare the amount to the 1st month of the previous quarter, January 2016.  April’s dividend income saw a 71.28% increase from January 2016 ($5.32).   This increase was related to Wal-Mart increasing its dividend from .49 to .50, and initiating a position in Pepsi (PEP).  I am reporting Pepsi’s dividend in April, even though the pay date was March 31. The reason is because I don’t have access to the new dividend until the day after the published “pay date”.  Being on cash-basis accounting, I chose to recognize Pepsi dividend the day it became available to me, which was April 1.

Interest Income:

Our interest for April came in at $5.26.  During April 2015, interest income was $10.76, which means our interest income declined $5.50, or 51.1%.  As I’ve stated in prior posts, this was expected as we maintained larger cash position during that time before eventually deciding to pay down debts.  In March we purchased a 5-year CD, yielding 2%, to supplement our dividend income.  It will pay interest quarterly, which is when we will recognize the income and report it.  We are to receive interest payments quarterly, with the first payment expected in June.

REWARDS:

We received no income rewards or any apps, though we have accumulated enough points from both to cash in.  As we exchange points for dollars, we will include it in future posts.  The app I currently use is  FRONTO.

 

New Life Portfolio Update:

The portfolio was born February 5, 2015, with the purchase of a single share of ExxonMobil.  At the end of 2015, the value of the portfolio was $3,393 with about $3,457 invested.  As of the end of April, the value of the portfolio now stands at over $7,700.  We are proud of the progress as we look to see $10,000 invested before 2016 is over.

As mentioned earlier, I created an account at Loyal3.  I have never been able to trade in large amounts.  As a matter of fact, my first purchase of ExxonMobil was about $97…WITH COMMISSIONS!  Yes, I paid $4.95 commission for the purchase of a single share.  How much I’ve grown over a year!  Loyal3 allows me to invest small amounts into some great dividend companies and not pay any commissions.  This works great for me, as I trade in small increments and fees can really eat into my profits.

For April, I purchased the following shares:

3.0292 shares ($174.00) – Starbucks (SBUX)

2.9977 shares ($234.00) – L Brands, Inc. (LB)

For May, I plan on opening an account at Robinhood, which will allow me to shop the entire stock market commission free.

 

We would love to know how all of you did with passive income for April.  Did you reach personal highs?  What are you looking to buy/invest in to increase your income and portfolio size?





2 thoughts on “April 2016 Dividend Update

  1. bamfmoney Reply

    If you’re not opposed to investing in big tobacco (MO, PM, RAI) all pay the first month of the qtr. KO as well. Lots of good dividend growth companies that month. The link above has a post I put up about my dividend holdings in an excel spreadsheet if you’re looking for ideas.

    1. Tradeourlife Reply

      Hi bamfmoney, thanks for stopping by.

      I am definitely not opposed to owning big tobacco, more specifically MO. The only issue is MO’s valuation. I would like to see a pull back but I may just initiate a small position and lower my Cost Basis should it drop. I really would like to boost that “first month of the quarter” income. A recent purchase of monthly dividend payer Realty Income (O) should help those months!

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