Investment Income – February, 2017

I always love reading blogs about other investors’ investment income. Watching other people’s passive income rise is my second favorite thing (the only thing better is watching our passive income rise!)

This report includes income from dividends and our rental properties. Although we don’t own any now, if we have other sources of passive income in the future (CDs, bonds, etc.) I’ll include them here as well.


Dividends
TickerNameAmount
AMPAmeriprise Financial, Inc.$178.91
AAPLApple Inc.$54.62
DEDeere & Company$168.86
OHIOmega Healthcare Investors Inc$883.34
SBUXStarbucks Corporation$104.57
VMMXXMoney Market$14.08
Loyal 3$14.74
Total$1,419.12
Rental Properties
4 properties owned 50%$478.26
4 properties owned 100%$1,350.98
Total$1,829.24
Total Income
Total passive income$3,248.36
Annualized annual income from last 3 months$74,269.60

Dividend Income

This was a solid but unspectacular month for dividend income. This month we had $1,419.12 in dividends compared to $1,204.99 in January and a massive $10,941.76 in December! This is a run rate of $4,521.96/month.

Our single largest dividend payer is Omega Healthcare Investors. We are on track to receive about $3,500 in dividends from them over the next year (assuming no dividend increase). It’s amazing what a high starting yield combined with moderate dividend growth can do for an investment.

I continue to think OHI is a great investment at today’s prices (approximately $32-$33/share). It’s one of the very few pockets of value I see in the market right now.

Rental income

This category includes net 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.

This number does not include appreciation of the properties or the decrease in the mortgage balance.

Another month where all the properties are firing on all cylinders. We had no maintenance issues at any of the 8 properties and they are all occupied. This is the maximum monthly income we can expect from the properties at the current rents.

One thing I haven’t pointed out in past updates but is very relevant when examining our various passive income streams – due to the large number of deductions and depreciation on our properties we haven’t had to pay a single penny in taxes on any of our properties since we started acquiring them in 2012.

And, at the current rate, it will be at least another 2-3 years before we have to start paying taxes on this income.

Total passive income this month

Dividend + rental income = $3,248.36

Annualized passive income based on last 3 months of income = $74,269.60

(note: I calculate the annualized number by adding up the last 3 months of passive income and multiplying by 4).

This was a solid month. It’s amazing how fast things start going once you get that snowball rolling downhill. The goal is to hit $120,000 in passive income by December, 2021. Our income this month puts us 61.9% of the way there. We’ll need to grow our income by 10.07% per year to hit our goal. I expect to hit this through a combination of dividend raises and additional investment (although I’m not making new investments today given the current market valuation).

 

How did everybody else do with their passive income this month?

4 thoughts on “Investment Income – February, 2017

  1. I love that you share your portfolio. The hardest thing to do when managing your own investment is to compare to other individuals that ate doing the same thing. I also appreciate your wisdom and analysis. I personally have own aboUT 7% of my portfolio in the market the other 93% is in alternative investments that also provide me a passive income . Majority of my asets are in private equity deals. They are not as liquid os stock so my lock in period is anywhere from 90 days to 1yr but my returns more than justify the longevity. My track record for the last 28 months has averaged about 12.8% in this sector. Thanks again for your posts and dedication to educate the public. Well at least the few people that want to know.

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