Passive Income – June 2013 Update

Passive Income - June 2013 - Field and Sky

Please note I understand June wasn’t yesterday! Just getting all of my updates into place from this past summer!

My favorite post of the month is my monthly passive income update as it shows each month how I am getting a step closer in developing enough streams of passive income to supplement my working income and achieve financial independence. Before we check out June, remember that I updated my 2013 goals so the percentages and goal amounts are not an exact continuation of May’s numbers. Now let’s check out June and see how things turned out!

Passive Income:
2013 Goal
Percentage of
Annual Goal
Lending Club

Lending Club: June saw my net interest from Lending Club hit its highest level yet. In April’s update I mentioned that I thought it would take until June or July to hit $140-150. Well June blew right through that expected amount ending at $165.46. This jump has certainly helped me make great progress on my updated 2013 goals, but it still will be a stretch unless I can consistently get solid months like this one. I know defaults and charge-offs are quickly approaching in this account.

As the end of June, my weighted average interest rates are 18.05% and 15.05% 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 June, my overall internal rate of return was an awesome 18.06% across both accounts.

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 June Lending Club update.

Prosper: June was the first month of net interest earned by Prosper, my new peer-to-peer lending account. During June this new account earned $11.15 of net interest income. At the end of the month, my average interest rate of the notes invested in is 21.76%. My updated 2013 goal for my Prosper account will be a stretch, but I think it is doable provided I make some additional investments. If you haven’t yet, check out my full June Prosper update.

Dividends: During June I received dividend payments from four of my holdings, Aflac, Inc. (AFL), Intel Corporation (INTC), Lorillard, Inc. (LO), and Prospect Capital (PSEC).  My dividends, totaling $95.60 for the month, are detailed below:

  • AFL: $10.50, reinvested into 0.188 shares
  • INTC: $29.25, reinvested into 1.177 shares
  • LO: $21.45, reinvested into 0.489 shares
  • PSEC: $34.40, reinvested into 3.291 shares

In addition to the dividend payments from these four companies, I purchased 38 shares of The Coca Cola Company (KO) for a total cost of $1,500.82, an average cost basis of $39.50 per share. Based on the annual dividend payment of $1.12 per share, this purchase has a yield of 2.84% and adds $42.56 of income to my forward twelve-month dividends. I consider KO a hold forever stock, and look forward to the future compounding and dividend growth of this purchase.

With the reinvestments mentioned above, and the acquisition of KO, my forward twelve-month dividends increased to $1,098.78 from $1,049.47.

Passive Income Summary:

In looking at June, I made great progress towards my updated 2013 goals by achieving over 10% increase in progress on those goals in one month. As you can see below, my passive income by month has been increasing nicely. Absolutely looking forward to seeing how things continue to progress from here.

Passive Income by Month - June 2013

That’s it for my June passive income update! Without a ton of time or energy my investments have earned $272.21 of total passive income for me! What types of investments have you found successful in generating a consistent and increase level of passive income?

Don’t hesitate to look around; you can find details on all of my investments under the Equity Investments page, monthly updates under the Passive Income Updates page, and progress on my 2013 goals on the Goals page.

If you haven’t yet, be sure to follow me on Twitter, and like me on Facebook!

Flickr: Paul Williams

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  1. Great income with all the increases in 2014, I foresee you reaching 3k in income very soon.

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