June 2016 Dividend Update

Money_wedding-481x660With the passing of June, we have completed the first half of 2016.  June is a very special month for the TOL’s as it marks 1-year wedding anniversary!  That’s right, one year of wedded bliss!  What made this even more special was this month’s cash flow from passive income.  This month saw us hit our first passive income milestone, as we crossed the $50.00 mark in actual passive income received in one month.  I am still amazed at the progress we have made in a little over a year, especially since we became a one-income household and we will continue to push harder and harder towards financial independence.

Passive Income is the name of the game.  Passive Income is what will fund our retirement.  Passive Income is what will allow us to break the chains of a 9-to-5 job.  And here is our Passive Income for the month of June:

$5.40 – Pfizer (PFE)

$6.00 – Wal-Mart (WMT)

$5.25 – ExxonMobil (XOM)

$5.94 – United Technologies (UTX)

$4.00 – MetLife (MET)

$3.19 – Main Street (MAIN)

$2.99 – Realty Income Corp. (O)

$1.80 – L. Brands, Inc. (LB)

$5.94 – T. Rowe Price (TROW)

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$40.51 TOTAL JUNE DIVIDENDS

$  5.68 INTEREST EARNED FROM SAVINGS ACCOUNTS

$   2.53 INTEREST EARNED FROM CD

$10.00 APP REWARD

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$58.72 TOTAL JUNE PASSIVE INCOME

We expected June’s passive income to be very impressive, and it did not disappoint.  The third month of the quarter is usually where most companies, funds and ETF’s pay out their dividends.

The following is a brief breakdown of each category:

Dividend Income:

For June, our dividend income was $40.51, a $39.78 increase from June 2015’s income of only $0.73!  That was almost too embarrassing to write.  That is not a typo; we actually earned 73 cents in June 2015.  This is an amazing 5,449% increase year-over-year!  I know the percentage is not realistic in terms of year-over-year dividend growth; however, the numbers ARE what the numbers ARE, and those ARE our real dividend income numbers!

Since June is the 3rd month of the quarter, I will compare our dividend income to the 3rd month of the previous quarter, March 2016.  We received dividend payments from a record 9 companies!  This is three more companies than March 2016, when we received payments from 6 companies.  June’s dividend income was $16.31 more than March’s dividend income, a 67.4% gain!  Several factors contributed to this increase:

  • Dividend increases from UTX, XOM and MET;
  • A special dividend payment from MAIN in addition to their regular monthly payment;
  • Positions initiated in O, LB, and PFE; and
  • Wal-Mart paid its dividend in June instead of July. This was a bit of a surprise as the previous two payments were made in January and April, the first month of the quarters.

Interest Income:

Our interest income for June came in at $8.21.  During June 2015, interest income was $10.37, which means our year-over-year interest income declined $2.16, or 20.8%.  Although our interest income for 2016 has been steadily increasing, we expect our Emergency Funds to take a small hit, as I had an unfortunate mishap on my way home from work (yet another reason to be FI!), for which a car repair is necessary, and thus will lower the EF balance and the related interest income.  But hey, that’s the purpose of having an emergency fund, right??

Rewards

As mentioned in our Milestone #9 post, part of our passive income for this month was an app that allows you to earn points that can be redeemed for cash transferred to a valid PayPal account.  It is downloaded on both phones and my phone accumulated enough points to reach the $10 level.  It’s such a simple process as you earn points just by unlocking your phone or when you download an app.  As of this writing, I’m already a little less than halfway to another $10 reward.

New Life Portfolio Update:

As of the end of June, the value of the New Life Portfolio stands at $9,202.47.  We are invested in 15 companies, one more than last year, which cover 9 of the 11 stock market sectors.  A $10,000 portfolio is right around the corner!

We created and are really enjoying our commission-free account at Loyal3.  In addition to that, I am now utilizing my Robinhood account.  Whereas Loyal3 only has a select number of companies to invest in, I can trade the entire market with Robinhood.  This is a very helpful platform for traders such as myself who trade in smaller increments.

For June, the following shares were purchased and added to the Loyal3 and Robinhood accounts:

0.6006 shares (cost basis was $40.00, average $66.60/share) – L Brands, Inc. (LB)

Total shares in Loyal 3 account:

  • 2221 shares (valued at $240.62) – Starbucks (SBUX)
  • 5983 shares (valued at $242.99) – L Brands (LB)

Total share in our Robinhood account:

  • 1 share (valued at $28.80) – Cisco Systems, Inc. (CSCO)

This is our June Passive Income.  We think we did pretty well as we substantially increased our passive income year-over-year and from quarter-to-quarter.  We are highly motivated and look forward to reporting more gains and increases in the future.

 

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





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