Is it really past the halfway mark of May? This month has been absolutely filled to the max and has led to the most irregular posting of my short blogging history. More on some of why this has been so busy in future updates! For now, let’s check out how my overall passive income shaped up in April!
Passive Income Summary:
|LC - Net Interest|
Lending Club: April saw my net interest from Lending Club continue to move up as my Roth IRA account became fully invested. Currently, my expected monthly repayments and interest have grown, with a current total just shy of $400 between both accounts. As a result, my funds are currently turning over and being reinvested into approximately 16 notes per month. My weighted average interest rates are 17.95% and 14.96% in my Roth IRA and taxable accounts, respectively, giving me the potential for high returns over the course of the next few years. For the month of April, my overall internal rate of return was 12.89% across both accounts.
I said last month that I hoped to hit $140-150 per month in net interest by June or July. Given the current rate of growth, I actually believe I have an outside chance of hitting the $140 mark in May. Important to note, I calculate my monthly net interest amount to be interest received less any charge-offs, defaults, and services fees in the given period. If you haven’t yet, check out my full April Lending Club update.
Dividends/Trading Income: During April I received dividend payments from three of my holdings. BP PLC (BP) paid their quarterly dividend of $0.54 per share, resulting in $16.20 of dividends from my 30 shares. Unfortunately, because of the ADR nature of BP, I wasn’t able to get these dividends reinvested directly, as reinvestments must come in whole share amounts. As a result, I have since sold this position as I am currently focused on holdings that will be about to be directly reinvested.
I also received my monthly dividend payment from Prospect Capital (PSEC) of $0.11 per share, resulting in a reinvested $33.68 of dividends. This was reinvested into 3.195 more shares bringing my total up to 309.173 shares.
As I mentioned last month, Cisco Systems (CSCO) announced it would be increasing their dividend from $0.14 to $0.17 per share. This is an increase of 21.4%, and comes in time for their April dividend. With that increase, I received $17.00 in dividends, which was reinvested in 0.830 additional shares, giving me a total of 100.83 shares.
With the reinvestment of my PSEC and CSCO dividends, my projected 12-month forward dividends have increased to $1,050.71.
That’s it for my April passive income update! I am now seeing an acceleration in income that is now has me earning at a rate that should allow me to surpass my overall 2013 goals. I will do a total goal update at the halfway mark and make revisions as necessary!
Don’t hesitate to look around; you can find details on all of my stock investments under the Equity Investments page, monthly updates under the Passive Income Updates page, and progress on my 2013 goals on the Goals page.
Flickr: Rennett Stowe