Investment income – May, 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, bonds, and rental properties.

 

Dividends
TickerNameAmount
AMPAmeriprise Financial, Inc.$198.00
AAPLApple Inc.$60.37
DEDeere & Company$168.86
OHIOmega Healthcare Investors Inc$897.59
SBUXStarbucks Corporation$105.03
VMMXXMoney Market$8.15
Vanguard California Muni Tax Exempt Money Market$15.98
Total$1,453.98
Rental Properties
4 properties owned 50%$258.26
4 properties owned 100%$703.81
Total$962.07
Total passive income$2,416.05
Annualized passive income based on last 3 months$58,645.45

Dividend & Interest Income

May was a bit of a disappointment. Although our dividend income was up, our rental income was down and the net result was less income in May than in April.

This month we had a total of $1,453.98 in dividend income. The vast majority came from OHI ($897.59). We also had a very small amount of interest from my money market mutual funds.

Although OHI was ~62% of this month’s dividend income it’s only 8.8% of my dividend income over the last 3 months, so I don’t feel there’s undue risk there. However, rather than reinvesting the income from OHI I’m using it to diversify into my other investments.

I’ll no longer be showing any Loyal3 income, as the company seems to have shut down and I transferred all of my stocks into a Merrill Lynch Edge account. It’s unfortunate, as I liked both Loyal3 and the idea of being able to dollar cost average into a number of companies at no cost.  However, as I mentioned last month, my ML account has 30 free trades per month and I make 1-2 trades per month, so I won’t be paying any transaction fees anyway. Plus, ML is part of Bank of America (who I do all our banking with) and that means I can easily transfer money from my B of A account to the ML account.

Overall this was a solid month from a dividends perspective.

Related: The time I doubled my after-tax return with about 60 seconds of work

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 (those numbers will show up in the net worth report at the end of each quarter).

 

This wasn’t a particularly good month for our rental properties. We had to pay for tax services on the rental properties owned with my mom (we have to file as a partnership which results in additional paperwork that has to be filed with the IRS). The tax filing took a $440 bite out of our income for the month. In addition, one of the other properties had an issue with the air conditioning and that cost about $150 to fix.

Total rental income: $962.07

Total passive income this month

Dividend + rental income = $2,416.05

Annualized passive income based on last 9 months of income = $58,645.45

I calculate the annualized income because it smooths out the differences in income from month to month. This is not a prediction for the next 12 months, as it is backward looking rather than forward-looking. However, it’s a good metric to give me a rough idea if we are on track to achieve our saving/investing/income goals for the year. I use 9 months because that’s how long I’ve been tracking and posting my monthly investment income. Starting in August, 2017 I’ll be able to calculate and post my trailing 12-month income.

We are just below 50% of our way to the goal of $120,000/year in passive income. We should get a nice boost to our income over the next few months as I invest the money from 2 large commission checks. Stay tuned for more details on that.

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

6 thoughts on “Investment income – May, 2017

  1. That OHI is awesome get a few others up there and bam you really got it going. Id be happy getting my OHI up to 400 lol. Keep it up

    1. Thanks – I still think OHI is quite a bargain, so I’m trying to decide if I should make further investments into it or if I should reallocate the cash elsewhere. For now I’ll reallocate elsewhere, so my OHI dividend won’t be growing much in the near future.

  2. Those are great numbers for a month in which a lot of companies don’t usually pay dividends. The rental income slip is a bummer but that will happen from time to time. It’s interesting to compare the income from OHI to the rental income and see how close it is. Physical rental income will generally have a much higher ceiling than REITs but you also get all the stress that comes along with it.

    1. Very true. And as I get older I am more and more interested in simplifying my life rather than increasing net worth. Because we have property managers for the rental properties they are fairly hands-off, but the property manager fees definitely cut into our profits.

    1. All of our rental properties are single family houses. I like SFH because they appreciate more. Multifamily rentals (apartment houses, duplex, triples, etc.) tend to sell based on rental income. SFH tend to sell based on the higher of rental income or the local housing market (which can be completely disconnected from rental income).

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