Hello all, and welcome to another edition of the TOL’s Passive Income report. The month of July marks the first month of the third quarter and as most of you astute investors know, this is the month where sometimes not a lot happens. However, let’s see how the TOL’s faired!
Below are the numbers of our passive income for the month of July:
$1.26 – Main Street Capital (MAIN)
$6.02 – PepsiCo (PEP)
$ 7.28 TOTAL JULY DIVIDENDS
$ 5.27 ONLINE SAVINGS ACCOUNTS
$12.55 TOTAL JULY PASSIVE INCOME
For the month of July 2016, the TOL’s earned a total of $12.55 in passive income. On the surface, it appears to be a rather dismal month for income. However, when the numbers are broken down and the details are explained it may not seem that bad after all.
For the month of July 2016, the dividend income of $7.28 is exactly…(checking my math, carry the 2, divide by the 8th power)…$7.28 more than July of 2015’s dividend total of $0.00 dollars! I guess that $7 dividend income doesn’t look so bad when stacked against the same month last year, when our portfolio was in its early stages.
When July 2016’s dividend income is shown against April 2016, the first month of the previous quarter, it reveals a quite different story. Dividends for April 2016 were $12.88, making July’s income $5.60 less, which is a 43% drop. This drop, however, is related to a payment from Wal-Mart during that quarter. We recently sold Wal-Mart, which explains the drop in income for the month in which Wal-Mart pays.
Interest income for July 2016 came in at $5.27, a 35.8% ($2.94) decrease from the previous month’s interest income of 8.21. The decrease is due to CD quarterly interest paid in June and a reduction in cash due to a minor car accident resulting in a $950 repair bill for our vehicle. Accidents are a part of life and a part of driving, I’m just glad we have an emergency fund for life’s little oops moments!
Compared to July 2015, interest income dropped 39.6% from $8.72 paid during that time. This is the result of using extra cash to pay off debts during 2015. We are still working on getting our emergency fund to $10,000, just not sure if it will happen this year.
For the month of July 2016, we received no other passive income from our CD or Rewards programs.
January, April, July and October (known as JAJO months) months have the ability to really stink up the Passive Income reports, as not a lot of companies pay during these months. Maybe I should start looking for dividend-paying stocks that pay out strictly during those months! However, selecting positions by payout months is not part of my selection strategy. There are stocks that are on my watchlist that do pay during these months – KO, ADP, MO, etc. I will keep my eye on the valuation, and should it hit my sweet spot, then I will add them to my JAJO income.
We would love to know how all of you did with passive income for July. Was your month pretty calm or did you reach any personal highs? What are you looking to buy/invest in to increase your income and portfolio size?