Dividend update 11-2-18

Back with another dividend update. The last one was almost 3 months ago and since then I have improved my forward dividend by 23 percent! So, lets jump right into it.

Here is my table of dividends as seen on August 5th.

Ticker cost avg percent yield dividend/share share # year equivalent
CEFL $16.92 14.36% $2.43 16 $38.88
LB $32.36 7.42% $2.40 10 $24.00
T $31.89 6.27% $2.00 10 $20.00
STAG $25.85 5.49% $1.42 20 $28.40
F $11.19 5.36% $0.60 80 $48.00
O $55.78 4.73% $2.64 27 $71.28
PG $74.40 3.86% $2.87 2 $5.74
AAPL $157.51 1.85% $2.92 1 $2.92
      Total forward dividend $239.22
      Yield on portfolio 2.81%

 

To recap that is $239.22 in forward dividends on $8500. I have since then increased my portfolio by $3,000 to a standing total of $11,500 as of now.

Below is the chart showing my current forward dividend.

Ticker cost avg percent yield dividend/share share # year equivalent
CEFL $16.55 15.65% $2.59 20 $51.80
LB $32.00 7.50% $2.40 11 $26.40
T $31.89 6.27% $2.00 10 $20.00
STAG $25.85 5.49% $1.42 20 $28.40
F $10.52 5.70% $0.60 115 $69.00
CAT $113.68 3.03% $3.44 2 $6.88
O $55.78 4.75% $2.65 27 $71.55
PG $74.40 3.86% $2.87 2 $5.74
AAPL $157.51 1.85% $2.92 1 $2.92
CBL $4.09 7.33% $0.30 40 $12.00
      Total forward dividend $294.69
      Yield on portfolio 2.56%

 

Some new additions have been made such as CAT, and CBL. I have also increased numerous positions such as F, LB, and CEFL. My percent total has gone down slightly since I have bought positions and added to non-dividend positions such as CHK, BPMX and FB. Unfortunately, CBL took a massive dividend cut of 67.5% and has significantly hurt my forward dividend projection.

I am currently in a holding pattern as I will have no more income coming in for the foreseeable future. I will be using my dividends to purchase more stocks and options and hope that I will be able to generate profits to keep my dividend base growing throughout the school year. I also hope to make some large sales in the future.

Several notes that I will highlight further in my passive income update which should be arriving here this weekend include. Added positions in my stash account that produce dividends and interest payments. Added cash in my savings account which produces interest, as well as added cash into my Lending Club account that also produces interest payments. While not dividend driven my passive income, streams are growing and will continue to grow in the future.

Below is a highlight of my dividends and interest over time.

Dividend tracking 2017 2018
January $0.00 $12.86
February $0.00 $28.19
March $0.00 $33.18
April $0.00 $15.35
May $0.00 $17.72
June $12.54 $28.21
July $6.39 $14.32
August $5.55 $18.42
September $20.68 $35.56
October $17.86 $25.08
November $23.12 $8.80
December $28.13 $17.25
total $114.27 $254.94

 

Reviewing over the last several months we can see August saw a dividend increase of 231%, September saw an increase of 72%, and October saw an increase of 40%.

div 11-2

Currently sitting ~$255 of dividends to be collected in 2018 unfortunately that will be far short of my goal of reaching $500 in dividends received. Consistency is key, and I plan to continue adding to my dividend positions and increase my passive income. With large sales and profits generated from that in the future we should see a dramatic increase in forward dividend in the coming months/years. In the coming months we will be able to see actual YoY gains on the full calendar year and see exactly how much improvement has been made since there have been various accounting changes as well as significant positions added that haven’t materialized quite yet.

As always let me know what you think and if you have any comments or suggestions I would love to hear them!

Passive Income overview 9/5/18

Passive Income is all the rage these days, with ecommerce blowing up, YouTube, podcasts, blogs, investing etc. there are lots of reason why it should be something to think about. Let’ s dive into it and see what it is all about!

Passive income is income resulting from cash flow received on a regular basis, requiring minimal to no effort by the recipient to maintain it. (Wikipedia)

That sounds amazing! Minimal to no effort and receiving cash from it, but its not quite that simple. Passive income often requires either initial upfront energy, effort, and time or initial upfront cash.

My expertise is with the initial upfront cash portion, so we’ll get into that. I have been collecting data on my passive income for over a year now. I currently receive passive income in the form of interest payments from Lending Club, my savings account, stock dividends, stock interest payments, and I guess money saving apps as well. I won’t go into that last one in depth as I am saving that for an article in the future. Hopefully if you’ve been following me for awhile or are at all familiar with investing you understand what a stock dividend is. Essentially you own a dividend paying stock a every quarter or for every month you receive a little gift from the company in the form of a monetary payout for being their stockholder. I also receive some interest payments from my stocks when people short the stocks I own. Between my savings account interest, stock interest, dividends from both Robinhood and Stash I have received $186.37 this year. Not too shabby most would say, but this does come at a price to the tune of ~$12,500 invested in the above-mentioned platforms. The other vehicle I use for passive income is Lending Club. Currently I have received $233.74 in interest payments this year through that platform and that is to the tune of about $4,000 ish invested. A little calculator work later and we are at $420.11 this year in passive income, or about $46.68 per month.

I’m proud of that number to say the least but there’s more to come and in fact my goal for 2018 was to make $1,000 in passive income this year. There is still along way to go to reach that $1,000 mark and less than 3 months till the ball drops and we are standing in 2019.

My plan to get there is already in the works, I have a sizeable position building in Lending Club, in fact there is quite a lot of notes (loans) that haven’t paid me yet because they are so new. When that all comes clicking together and I continue to add to that platform I expect my interest payment payouts to sky rocket. I think I’ll put in another $1,000 into that platform or so and will be reinvesting the principals and interest payments to snowball that passive income stream and make it larger.

The other side of the coin is my stocks and etf’s I own. I have added around $750 into my stash positions and most of those pay dividends. I’ve also added $1400 to my robinhood portfolio and a decent chunk of that has gone to dividend stocks. I plan to continue to add to both and make profits on my positions to reinvest into dividend stocks as well as reinvest the dividends back from where they came from.

The goal for this is to reach financial freedom. There are various definitions to this but for my purpose it is to create passive income streams that are greater than my active income (the money I make from working). When you reach this and assuming you account for inflation, cost of living increasing etc. you can effectively retire. Now of course I don’t plan to retire super early and go live on a beach or anything like that, my mission is much bigger than that, however that is the ultimate plan.

You might be taking a look at this and scratching your head like, “Brandon, you’ve got a long way to go to replace your standard income if you aren’t even at $1,000 a year yet” and you are absolutely correct. My stock portfolio currently yields around 3%, for a modest $40,000 a year to live on my portfolio would have to be around $1.3 million at that same yield to produce that. That’s a lot of motherfucking money to reach financial freedom if you ask me.

That’s why I am looking into investing in real estate when I build my capital up. With real estate’s monthly cash flow and leverage assuming a modest 5% return not accounting for increasing rents or refinancing or anything like that an $800,000 property would yield $40,000 a year and with a 25% down payment of $200,000 you could control that. That looks much more attainable to me.

Using Grant Cardone’s 40% rule, profits from my investments, and existing passive income streams that will grow that should be attainable within a few years if all goes right.

As Warren Buffett said, “If you don’t find a way to make money while you sleep, you will work until you die.”

Now are these passive income streams passive, no. I actively invest in the stock market, I do research on the positions I take, I check lending club frequently and hand pick my loans that I invest in etc. But all in all they are pretty passive. Real estate on the other hand isn’t very passive until you get to the big leagues and can afford a property manager.

Grant’s new real estate investing book is in route to my door in STL and I will be giving that a read very soon and I plan to implement his plan and to go big on my first deal. We’re talking 24-32 units costing $1.4- 2.0 million requiring a down payment in the neighborhood of $500-700k. Like I said large upfront capital or large up-front work, time, energy.

I should also mention what I am doing right here follows that other method that I haven’t gone over. This blog while it does not produce any income and actually never has produced any income for me may be able to one day. Consider how much time I’ve spent (10 months, 60 blog posts, advertising, Instagram etc.) to get it to this point and still haven’t made a dime with it. That’s what I am talking about in terms of up front time, energy, and effort.

It will not be easy whatever passive income route you choose, but with a good strategy and the work you need to put into it the prize is pretty frickin nice.

Let me hear your passive income journey!

B^2

Dividend Update 8-5-18

Dividends have been an important goal of mine all summer, for those of you who don’t know I am a student so for the next several months (August-May) I will produce very little income because I do not work during the school year. I may however pick up a side hustle in the Spring as I will have lots of free time due to a low-class load and less rugby responsibilities. For me to fund my investment accounts and keep things fluid more or less, I need to either A) sell my positions for profit and reinvest the earnings or B) produce dividend income to fund new positions.

Obviously, I do intend to profit from my investments however we don’t always know what lays ahead in the stock market and what opportunities may present themselves, so dividend income is safer bet. Below is where we left off from the 6-3-18 dividend update:


Ticker cost avg percent yield   share # year equivalent
CEFL $17.72 14.73%   11 $28.71
OHI $27.12 9.73%   5 $13.20
AAPL $157.51 1.85%   1 $2.92
PG $74.40 3.86%   2 $5.74
F $11.30 5.31%   60 $36.00
STAG $25.85 5.49%   20 $28.40
O $55.78 4.71%   27 $71.01
CBL $4.56 17.54%   5 $4.00
TTS $6.73 2.97%   15 $3.00
        a year in dividends $192.98
        percent of total 2.41%

 

Forward projection of dividends was $192.98 yielding 2.41% with 66% of that comprised of monthly paying dividend stocks. Respectable but nonetheless I wanted to improve my monthly income as well as my overall dividend income.

As of 8-5-18 here are the current stats:

Ticker cost avg percent yield dividend/share share # year equivalent
CEFL $16.92 14.36% $2.43 16 $38.88
LB $32.36 7.42% $2.40 10 $24.00
T $31.89 6.27% $2.00 10 $20.00
STAG $25.85 5.49% $1.42 20 $28.40
F $11.19 5.36% $0.60 80 $48.00
O $55.78 4.73% $2.64 27 $71.28
PG $74.40 3.86% $2.87 2 $5.74
AAPL $157.51 1.85% $2.92 1 $2.92
        $239.22
        2.81%

 

Forward projection of dividends at $239.22 (increase of 24% in 2 months), yielding 2.81% on the entire portfolio. Approximately 58% of dividend payouts comprised of monthly paying dividends. I should also note that I also improved my dividend outlook on the investing app “Stash” I never crunched the numbers on that, but I added 2 positions that had dividend yields and I have another position I plan to add here shortly.

Overall, I am very pleased with the increase on all fronts, the snowball has essentially started to roll, and we should see significant payoffs in the future. I would eventually like to yield 3%+ on my Robinhood portfolio however my 2 largest positions currently do not pay a dividend.

If you follow my Instagram you may have seen the table that compares 2017 to 2018 dividends per month. (If you don’t follow my Instagram it is @bsquared.website) I started tracking dividends in June 2017 and comparing June and July of ’17 vs. ’18 you can see I have doubled the dividend income in both months and August also posts a double (soon to be triple) return as well.

As you can see we have quite a bit of momentum built up and I am looking to continue that trend. I do believe we will have a tough time achieving the goal of $500 dividend income in 2018. (Currently at $171.49) The progress has been great thus far and I will be adding approximately $1250 to the Robinhood portfolio in the coming weeks and pending the opportunities I see should increase dividends even further.

As always let me know what you think! This is not a strictly dividend portfolio, I try to have some growth and value plays in there as well. As you can tell by my situation however the cash flow and fluidity help my situation tremendously. Feel free to drop a comment of reach out to me on IG or twitter @bsquaredweb10

Thanks!

B^2

Dividend Update 6/3/18

Hope everyone is doing well. As you may know I do a decent bit of investing centered around income and dividend growth. The appeal of constant cash flow, passive income, and free money has always intrigued me. As we closed out May I just wanted to share where I am at with my dividend situation. I have been focusing less on dividends than I did before, I obviously need some growth and value stocks since I am very young and have time to weather any storms. Shown below is a table containing my monthly dividend income, months in green are closed out and my June 2018 isn’t filled in either.

Dividend tracking 2017 2018
January $0.00 $12.86
February $0.00 $28.19
March $0.00 $33.18
April $0.00 $15.35
May $0.00 $17.71
June $12.54 $10.62
July $6.39
August $5.55
September $20.68
October $17.86
November $23.12
December $28.13
$114.27 $117.91
Goal: $125 $500

 

As you can see I narrowly fell short of my 2017 goal and I set my 2018 goal when I was very ambitious and into dividend stocks. Considering I have no active income during the school year building up a strong dividend portfolio is very important to me but perhaps not $500 in a year important. The graph below depicts the table above and we are finally at the point where we can start to see some overlap and how my dividends have improved and grown since I started tracking them in June of 2017.

div graph.png

The table below shows the various dividend stocks I own, their percent yield per my cost average, number of shares, year total payout, and my total payout and percentage compared to my total invested amount. As you can see if I want to reach that $500 in dividend income in 2018 there’s some serious catching up to do! Overall, I am yielding 2.41% compared to the SPY yield of 1.60% which isn’t bad. Like I said there isn’t as much focus on dividends as I’ve had in the past. My next purchases I would like to make would be some CBL unfortunately it shot up in price recently but a $100 investment in it would produce quite a bit of extra cash to work with every quarter. Maybe some more PG while its still cheap and O is currently my 3rd largest position in my portfolio and I try to add to it whenever I can when its down and those monthly dividends help tremendously when you have no income for 9 months of the year.

Ticker cost avg percent yield   share # year equivalent  
CEFL $17.72 14.73%   11 $28.71  
OHI $27.12 9.73%   5 $13.20  
AAPL $157.51 1.85%   1 $2.92  
PG $74.40 3.86%   2 $5.74  
F $11.30 5.31%   60 $36.00  
STAG $25.85 5.49%   20 $28.40  
O $55.78 4.71%   27 $71.01  
CBL $4.56 17.54%   5 $4.00  
TTS $6.73 2.97%   15 $3.00  
        a year in dividends $192.98  
        percent of total 2.41%  

 

So, let me know what you think! Any dividend stocks on your radar? Any you think I should sell or buy?

As always let me know in the comments!

B^2

Dividend update 3-26-18

I came to you guys almost 3 months ago with an overview of my dividend income and situation. Back then I was bringing in approximately $150 a year in dividends from Robinhood and with all dividends and interest included I was bring in a little over $20 a month. Today this is what we are looking at.

div update table 3-26-18

The above table tracks my dividends from multiple platforms (Robinhood, acorns, and stash) as well as interest I receive from Robinhood. As you can see there is a general trend upward and although there were some bad months (January) I receive upwards of $20 a month in dividends. Here is the table in graph form, the blue represents 2017 and the red represents 2018. As you can see March 2018 has been my best month to date with $31.68, or about a $1 a day.

dividend update 3-26-18

Below is another table tracking my dividend stocks in Robinhood. As you can see I am now making approximately $200 a year in dividends not including stash dividends or Robinhood interest. This equates to approximately 2.5% return on my portfolio in dividends.  I also have small positions in some very high yield dividend stock such as CEFL, CBL, and OHI. I am looking into increasing those positions moving forward and cost averaging down when I can, to increase actual percent yield which is calculated in the table below.

div table 3-26-18

Overall, I am impressed with these results as I have been taking my foot off the gas in terms of investing in dividend stocks. I have been looking more into higher potential returns than higher dividend income recently and we will see how that pays off in the future. Currently my largest position is down big right now (~$750) as that comes up as I expect it too in 2018/2019 and I can funnel more money into my investing accounts I will keep you all updated on my stock portfolio and my dividends.

Please leave a comment below!

B^2

10 Ways to make Passive Income – Financial Education YouTube Channel

I recently read Jeremy’s book 10 Ways to Make Passive Income. For those of you who don’t know, Jeremy runs the Financial Education YouTube Channel and I’ve watched his videos for awhile now and I’ve read his other book Modern Long Term Stock Market Investing Secrets!

Let’s get to it shall we. Passive income has been the latest rant and rave the last couple years it seems like. If you look up hashtags on Instagram it has tons of posts, there are hundreds of YouTube videos and books talking about it and for good reason. Who wouldn’t want to make money every second of everyday without putting in any active work. Some may say “No way! That’s too good to be true, make money every second of everyday without any work?!” Hold your horses there, it’s either going to take some sort of initial work or initial capital so let’s not get ahead of ourselves. Jeremey says, “Passive income is when you create a product, service, or business in the past and you are able to make money from that for years to come with little or no ongoing effort.”

What are 10 Ways to make Passive Income?

  1. Real Estate- This is Jeremy’s least favorite, because it’s not passive until you get to a very large scale. I am a huge fan still and plan to get into real estate in the next year or two. Passive income from real estate involves owning property and renting it out, like houses, apartment buildings, land etc. The reason this isn’t passive is because on a small scale you would have to find tenants, fix anything broken, keep in contact with tenants and make sure they pay on time, don’t break anything etc. This becomes passive on a large scale when you own entire apartment buildings and can outsource everything and make enough money to pay for that extra help and still make a profit.

 

  1. YouTube- Jeremey follows up his least favorite passive income method with his favorite. He obviously runs a very successful YouTube channel (126,000+ subscribers at time of writing). He tries to make a good balance of evergreen and regular content. “Evergreen content is when you make videos around subjects that people will still be searching for months/years/decades from now.” Regular content is more short term relevant videos at the time of production but may not have that long-term aspect. Building an audience and your subscription base is critical to building passive income from YouTube and requires making a video almost every day for a year or two to build a large following unless you luck out with a viral video.

 

 

  1. Dividend Investing- Another one of my personal favorites would be investing in dividend paying companies. To do this effectively you would want to invest in 10-15 companies to diversify your portfolio and invest in companies with a competitive “moat” as well as 2+% dividend yields with consistent growth and dividend increases. A competitive moat means the company is in no danger of competition taking significant portions of its market share and it’s a stable industry.

 

  1. Podcasting – Similar to YouTube podcasting requires lots of demanding work and dedication to create a following. Once you have a strong following you can advertise and cross promote your podcast to different social media sites. Podcasters sometimes make most of their income from listeners donating money to them via Patreon, a donation site specifically for podcasting.

 

 

  1. Ebook Author- Jeremey has had a lot of success with his investing book and can speak from personal experience on the benefits of being an ebook author. Nowadays with Amazon Kindle and ebooks becoming so popular its never been easier to become an ebook author! He suggests that you write books and funnel your social media platforms to buy your book, if you don’t have a large social media following he suggests selling your book for free the first week and get lots of reviews and reads under your belt before you start charging for it. Another strategy he talks about is if you plan on writing a series to alternate free and paid books. For example, if you are writing a 5-book series perhaps make book 1, 3, and 5 free and charge for 2, 4.

 

  1. Affiliate Marketing- If you are familiar with the Financial Education channel then you have seen the affiliate marketing Jeremy does. For those of you who are unfamiliar with affiliate marketing basically you link ads from sites like amazon and when someone clicks on your link and buys something from the site within 24 hours you earn a commission on whatever was sold. Now this is like 3-6% but on big items like laptops, cameras, etc. that’s an easy $20 bucks or so. The key to affiliate marketing is its just a numbers game and you need a lot of link clicks. Say for instance if we are talking about the Financial Education YouTube channel he estimates that 1 out of 100 people who view his videos click on the link. Of those 1% he estimates 10% will buy something. If you do the math on that you need approximately 1000 views to get 1 affiliate sale. This is extremely passive though, once the link is there it is there and if you have something that people will view, read, or site people visit often then its there forever more or less and can keep bring in passive income for years to come if the linked item is still relevant and for sale. I participate in affiliate marketing and while I haven’t converted any sales I am still at the very low end of the numbers game, for example at the time of writing this post, I’ve had 16 link clicks so if the rule of numbers is the same as the Financial Education channel then around 100 clicks I should ideally have a conversion.

 

  1. Website- This essentially piggy backs off affiliate marketing. The idea is to create a website with stellar SEO, and lots of views and use that to generate affiliate sales via amazon or other retailers.

 

 

  1. Selling Stock Photos/Music- Making music and taking pictures are popular hobbies nowadays. If you have a talent in this area you can sell photos and music on sites like Alamy, Istock photo, Shutterstock, and AudioJungle. Generally, the site you choose will take a cut of your profits but again a nice passive income source because once your photo or music is on there its on there forever.

 

  1. Create an Online Course- This is probably the fastest growing segment of passive income. In recent courses on Udemy and Teachable have exploded. Jeremey has recently started doing this he currently offers an options course and a stock market training course and has made substantial passive income from it. He recommends using a platform like YouTube to offer free content and then offer premium content on a course website and charge for that.

 

 

  1. Sell on Amazon and have Amazon Manage Inventory- is also a popular fast-growing segment of the passive income world. Essentially create a product and send the product to amazon and let them sell it, stock it and delivery it. Of course, this takes a cut out of your profits by allowing Amazon to do the work instead of you but that is the point of passive income its not suppose to be active work everyday shipping product managing your inventory etc.

 

He finishes with an outro encouraging his readers to implement his advice to build multiple streams of income passively. This would ultimately lead to financial freedom and not be tied down to the old 9-5 job.

 

This book is short, took about 30-45 minutes to read and I’ve covered the material fairly well, because of this I would not recommend buying this book for several reasons. I have presented all the ideas of this book. The information can be found on his YouTube page @ Financial Education and there are plenty of other YouTubers covering the same material and perhaps going more in depth than the book.

 

With that I’ll leave you a question. What are you doing to build several streams of income passively?

I can say personally I am looking into getting in Real Estate soon. I currently invest rather heavily in dividend paying stocks, and peer to peer lending which produces passive income on the order of about $500 a year. This blog and the affiliate marketing I do on it clearly lends itself to passive income. I may dabble in some of the above-mentioned areas in the future but for now those listed above are my top priorities.