2016 Q2 investment income

chart-clipart-k9589268When I read other financial blogs one of my favorite type of post to read is the breakdown of investment income. Watching other people’s passive income rise is my second favorite thing (watching my own passive income rise is the only thing better!)

So, from this point forward I’m going to join the party and track my own monthly passive income here. This includes income from dividends and my rental properties. However, it doesn’t (yet) include any of the income in tax-deferred accounts (401(k), IRAs, and Roth IRAs), as that income isn’t going to help me retire early. Although I don’t own any now, if I have other sources of passive income in the future (CDs, bonds, etc.) I’ll include them here as well.


Dividend Income

The equity portion of our portfolio is roughly 50% index funds and 50% individual stocks. The mutual funds are from when I first started investing. I was much more interested in simplicity and a low time commitment so I could focus my time on my career. As my investing philosophy as evolved over the last few years I converted some of my index funds into individual stocks. However, I’ve owned the index funds long enough that selling them would generate a substantial tax burden. As a result, I’ve decided to hold the index funds and direct all new investment money to my stock portfolio.

Ticker Name Q2
AFL AFLAC Incorporated $200.29
MO Altria Group Inc $336.56
AMP Ameriprise Financial, Inc. $178.91
AAPL Apple Inc. $54.62
BBL BHP Billiton plc (ADR) $9.92
BNS Bank of Nova Scotia $150.58
BP BP plc (ADR) $468.86
CVX Chevron Corporation $333.79
KO The Coca-Cola Co $136.49
COP ConocoPhillips $82.07
DE Deere & Company $168.86
ITW Illinois Tool Works Inc. $109.14
INTC Intel Corporation $64.84
IBM International Business Machines Corp. $128.25
JNJ Johnson & Johnson $409.42
KMI Kinder Morgan Inc $138.23
LMT Lockheed Martin Corporation $89.58
MCD McDonald’s Corporation $244.30
MDT Medtronic PLC $130.51
MSFT Microsoft Corporation $57.85
NKE Nike Inc $63.52
OHI Omega Healthcare Investors Inc $540.99
PM Philip Morris International Inc. $263.34
SBUX Starbucks Corporation $82.69
TGT Target Corporation $331.46
V Visa Inc $109.98
WMT Wal-Mart Stores, Inc. $293.04
WFC Wells Fargo & Co $183.88
Money market Money Market $3.71
VEMAX Vanguard Emerging Markets Stock Index Fund Admiral Shares $494.60
VEUSX Vanguard European Stock Index Fund Admiral Shares $1,419.42
VIMAX Vanguard Mid-Cap Index Fund Admiral Shares $888.21
VSMAX Vanguard Small-Cap Index Fund Admiral Shares $488.66
Total $8,656.57


Rental income

This category includes income from the 4 rental properties that my wife and I own, plus 50% of the income from 4 rental properties that we own with my mom.  We bought these properties in 2012 and 2013 because I thought prices were too low and these properties would be a great cash flow investment. So far I’ve been proven correct.

Note that this number is just the cash flow from the properties. This number does not include the improvements in net worth from the appreciation of the properties or the payment on the loans.

Total rental income = $2,876.80


Total passive income

Q2 passive income = $11,533.37

Annualized passive income (assuming no increases in rents or dividends and assuming no investments = $46,134.48

Hey, $46k in passive income is pretty good, but it’s a long ways from where I want to be. My goal is passive income of $10k/month, or $120K/year.

Follow my blog to see my progress to that goal over the next few years.

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