May 2016 Dividend Update

dividends

We have come to the end of May 2016, and we are almost half-way through the year.  It has been a beautiful journey for the TOL’s as we embark on our path to Financial Independence.  We celebrated our mother’s on their special day and saw a few loved ones graduate.  Only two more years before our own will be graduating high school and heading out into the world.  My, how time flies!

It is now time for our favorite subject – PASSIVE INCOME.  This is the time to tally up how much money our money made and how much we 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 May:

$  7.20 – AT&T (T)

$16.24 – Omega HealthCare Investors (OHI)

$  1.26 – Main Street Capital (MAIN)

$  0.81 – Starbucks (SBUX)

$11.50 – HCP, Inc (HCP)

__________

$37.01 TOTAL MAY DIVIDENDS

5.19 INTEREST EARNED FROM SAVINGS ACCOUNTS

__________

$42.20 TOTAL MAY PASSIVE INCOME

May passive income was very impressive.  As it currently stands, the second months of the quarter (February, May, August and November) are our biggest month in terms of dividend payments, as 7 out of the 14 companies in our New Life Portfolio pay dividends on those months (though income from May came from 5 companies, we did not own Verizon or Realty Income before the ex-dividend date to receive the dividend for this month).

The following is a brief breakdown of each category:

Dividend Income:

For May, our dividend income was $37.01.  This is a $35.57 increase from May 2015 income of only $1.44!  What a difference a year makes!  That is a mind-blowing 2,470% increase year-over-year!  To put this into perspective, the income we received for May 2016 could cover Mrs. TOL’s gas budget!  It could also cover one of our smaller utility bills or even one of our gym memberships!  That’s the beauty of passive income; it pays bills for us instead of getting up every morning and going to work to earn a paycheck to pay them!

Since May is the 2nd month of the quarter, I will compare the amount to the 2nd month of the previous quarter, February 2016.  May’s dividend income was $15.38 more than February’s dividend income, a 71.1% gain!  This increase was related to adding to our existing positions in AT&T and HCP, Inc., a dividend increase from Omega Healthcare, Inc. and initiating a position in Starbucks (SBUX).

Interest Income:

Our interest for May came in at $5.19.  During May 2015, interest income was $10.21, which means our year-over-year interest income declined $5.02, or 49.2%.  However, our interest income for 2016 has been steadily increasing from month to month as we continue to build up our Emergency Fund to provide us a cushion for life’s unexpected events.  Let’s hope life continues to be kind to our household and we continue to receive favor from God!

New Life Portfolio Update:

As of the end of May, the value of the New Life Portfolio stands at $8,273.  We are invested in 14 companies, which cover 8 of the 11 stock market sectors.  We are inching even closer to another TOL Milestone of a $10,000 portfolio!  We are very confident we will see this come to pass before the end of 2016.

As mentioned in an earlier post, we created an account at Loyal3, which will allow us to own great dividend-paying companies by investing smaller increments without the worry of commissions.

For May, the following shares were purchased and added to the Loyal3 portfolio:

1.1929 shares (cost basis was $68.00, average $57.00/share) – Starbucks (SBUX)

Total shares in Loyal 3 account:

4.2221 shares (valued at $231.75) – Starbucks (SBUX)

2.9977 shares (valued at $205.49) – L Brands (LB)

We also have an account at Robinhood, another commission-free trading app, that has yet to be funded.

 

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

 





5 thoughts on “May 2016 Dividend Update

  1. Captain Dividend Reply

    Now I could certainly live with a 2,470% increase every year! That would be something indeed. Great progress. It feels good when your investments payoff.

    1. Tradeourlife Reply

      Hi Captain Dividend, thanks for stopping by!

      I wish I could see that growth every month, but that’s what happens when your prior year amount was barely enough to buy a bottle of soda! But seriously, I am glad to see the amount go up as we have barely been at this for a year. We are very excited about our early accomplishments, as noted by the various Milestones we’ve surpassed and written about. As a testament to our progress, we didn’t even earn a penny in April 2015!

  2. David Schauber Reply

    I like how you talk about the dividends paying for your gas bill or your gym membership. This really helps those who are early in the journey, whose dividend payments are relatively small, to stay focused. Good Job!

    1. Tradeourlife Reply

      Thanks for stopping by David Schauber!

      I’m sure there are tons of people who, just like the TOL’s, are early in their journeys. We have been doing this for a little more than a year.

      The income seems small and insignificant when compared to some of my peers who have been at it for years and years, but we believe in time our income will grow and compound. Seeing how that income stream already covers some of our smaller household expenses is what keeps up motivated on this journey. Every expense that our passive income covers is an expense I no longer have to get up and go to work for!

      We don’t know when we will hit FI, but we will continues to enjoy the ride all the way there!

  3. […] have to admit, these are my favorite posts to produce.  I enjoy tracking our passive income; howeve... tradeourlife.com/may-2016-net-worth

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