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:
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).
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?