I always love reading blogs about other investors’ investment income. Watching other people’s investment income rise is my second favorite thing (the only thing better is watching our investment income rise!)
This report includes income from dividends, bonds, mutual funds, and rental properties.
Here is the breakdown of our investment income for November:
Every month I’ve been tweaking (and hopefully improving) the format of my income report. Please let me know if you have any suggestions on how I can make it even better.
Dividend & Interest Income
We continue to suffer from a lack of diversification in our dividend income. We are getting just over 44% of this month’s dividend income from a single company (Omega Healthcare Investors). And while I believe in OHI, I’m also cognizant of the fact that it’s not a smart idea to get too much income from a single source.
My plan to address this when I finally put our cash reserves to work. Right now we are sitting on around $750,00 in cash. I’m waiting until the market is priced a bit more rationally before I invest this money.
The interest income is from our California Muni bond fund and interest on our cash.
Total dividends received were $2,050.52, which was 56.65% of our monthly investment 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 show up in the net worth report).
However, this income is net of all mortgage, tax, and insurance payments.
This was a great month for the rental properties. We had one minor repair on one of the properties but otherwise everything ran smoothly.
Total rental income was $1,568.96, which was 43.35% of our monthly income.
Total investment income this month
Total (dividend + rental) income = $3,619.48
Here’s what our monthly numbers have looked like since I started publishing them on my website:
As expected, the graph has a peak at the end of each quarter, when dividend income is at its highest. Rental income has been a bit more stable.
Here’s what our trailing 12-month income looks like. Since I only started tracking these numbers in Sept, 2016, I only have actual 12-month totals starting in August, 2017. Before that date the numbers are annualized (that is, if I had 6-months of income data then I would double it to get a projected 12-month number). In 2016 I only had a few months of data to work with, so small fluctuations would cause my projected 12-month number to jump around. I think this number will start to stabilize now that I have 12 full months of data to use in the calculations.
Trailing 12-month investment income
Investment income over the last 12 months = $62,289.88. Note that this is our actual income over the last 12 months, not a projection. I would expect our income over the next 12 months to be higher as new investments are made, dividends and rent are raised, etc.
Our goal is eventually have $120k/year in investment income, so we are 51.9% of the way there!
I would expect the next 12 months of income to be higher than the last 12 months as dividends are increased, rents are increased, and new money is put to work. Just putting our cash reserves of $750,000 to work should result in another $22,500/year of income (assuming a 3% dividend).
November was a good month. Our dividend income has been consistent and our rental income was about as high as it can be.
I continue to believe that the market is richly valued and I just don’t see the point of investing new money right now. I have no problem holding significant cash while we wait for more interesting valuations to present themselves.
How did everybody else do with their investment income this month?
Are there any investments out there trading at reasonable valuations that I should be looking at?