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, mutual funds, and rental properties.
Here is the breakdown for September:
The last month of a quarter is usually a good one for our passive income and September was no exception. Our rental income was finally back in the black and we received almost $10k in dividend income.
Dividend & Interest Income
For whatever reason, the majority of businesses we own stock in pay their quarterly dividend on the last month of the quarter. The dividends themselves were pretty evenly distributed across our investments, with our largest single dividend payer (BP, $481.16) only accounting for 5.1% of our dividends for the month.
The largest individual payers, in order, are BP, Johnson & Johnson, Chevron, Target, and McDonald’s. That’s reasonable diversification across industries (BP and Chevron are obviously both oil/energy companies, of course).
The 401k and the IRAs are invested entirely in a S&P 500 index fund. Mutual funds were thus responsible for 70.81% of our dividends for the month. All of the funds we own pay quarterly, so this income is concentrated in just 4 months of the year.
Total dividends received were $9,442.37.
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).
This was a decent month for the rental properties. There were a few repairs that were needed, but at least we were a net positive for the month.
Total rental income was a mere $891.94.
Total passive income this month
Total (dividend + rental) income = $10,334.31
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.
Here’s what our quarterly totals have looked like. I tend to concentrate more on these numbers as they smooth out the monthly ups and downs.
The rental income in particular has been highly variable. This is due to some needed repairs on a few of the properties. The dividend income is much more consistent, with a nice increase each quarter of this year. I fully expect the dividend income in Q4 of this year to be higher than Q4 of 2016.
Unfortunately, our rental income was actually NEGATIVE for the entire third quarter. We put new tile floors in one our properties. The tile floors are replacing some worn carpet – the expectation is that these tile floors will reduce ongoing maintenance expenses, as they should need little to no work for the next 10-20 years.
Trailing 12-month passive income
Last 12 months passive income = $57,604.38
This is not a prediction for the next 12 months – it is the actual passive income received in the last 12 months. Our goal is eventually have $120k/year in passive income, so we are 48% 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, rent goes up, and new money is put to work.
September was a good month. Our dividend income has been consistent and our rental income did better than in the previous two months.
We have approximately $1M in cash ready to be deployed. If we were to put that to work at a 3% return then we’d expect to receive at least $87,604.38 in passive income next year, which would be 73% of the way to our goal.
How did everybody else do with their passive income this month?
Are there any investments out there trading at reasonable valuations that I should be looking at?