Here we are, just over one month into this great new year of 2015. The goals are large, the passion intense, and the new moniker sexy. That’s right; this is now the PIMP update. Passive Income Made Perfect. What does that mean really? Passive income is what we all are striving for, money that’s being made without another hour of work. The effort is put in up front, but the rewards will last a lifetime. ‘Made Perfect’ is really a different take on this efficiency of passive income. Whether you’re a dividend growth investor or a good old fashion Boglehead, the point is your passive income is made perfectly, without another real ounce of effort on your part.
So, now that we’re in the PIMP mindset, lets’ see how January turned out.
January Passive Income and Pageviews:
Blog Pageviews: Here we are, back into record setting territory for Write Your Own Reality. After the slowdown in December, things roared back with a vengeance here in January, crossing the 9,000 pageviews mark for the first time. In hindsight, perhaps I wasn’t ambitious enough with my annual goal? Bottom line, this goal is really a credit to the great readers and blogging community members who’ve commented, shared, and inspired me to keep on trucking along.
The second blogging goal up there is more for me as I work to provide some consistency and regular content. The past two years I’ve taken breaks, one after I got married, and the other when life just got plain crazy. It goes without saying, I’m going to 12 months of posting activity, and don’t see any reason to stop there! If you missed it last week, I shared that the blog is now another year older, crossing the 2-year mark on the 4th of February.
This past month I was able to publish six posts, which are listed below. The ‘Bonus Coverage’ post was particularly popular, and generated the most pageviews in a single day that I’ve ever had on a post. Most recently, my post regarding my January Loyal3 trades generated quite a discussion in the comments section, so feel free to check it out.
- Fluffing the Pillow: Refreshing My Dividend Growth Portfolio
- Trades – December No-Cost Dividend Growth Portfolio Purchases
- Passive Income and Pageviews – December and Overall 2014 Goals Update
- Grabbing the Moon AND the Stars, My 2015 Goals
- Bonus Coverage: My Dividend Growth Portfolio
- Trades – January No-Cost Dividend Growth Portfolio Purchases
Interest Income: New this year is interest income from savings accounts my wife and I have. I figured I’d add it to my tracking since it really is passive income and something I’m comfortable disclosing. While you won’t ever see our full net worth or financial picture here, this is yet one more source of passive income for us, and puts us even closer to accomplishing our long-term goal of financial independence.
Moving forward, this will likely be a very steady number, with only larger macro-type events impacting it up or down. Either way, it is the one account that is closest to the pace required to hit our goal this year.
Lending Club/Prosper: My P2P lending (also known as Marketplace Lending) returned back down to earth after a really successful December. My monthly net interest earned continues to stay well above $100 per month, and with some additional capital investments, I should be able to hit my goals this year. I’ve added $1,000 in total to my two taxable accounts at both companies right at the beginning of the year, so this should help drive further growth.
Positivity aside, there are some headwinds on the horizon for investors in P2P Lending. It remains to be seen what will be done with the massive split in institutional and retail note availability. Additionally, as investors are flocking in droves to P2P lending, interest rates being offered to borrowers are declining. Just last week, Lending Club again adjusted rates downward for most loan grades. While I can’t articulate exactly how this will impact my accounts, continuing to earn double-digit returns will become more and more difficult. Of course, I’m still more than satisfied to earn 9-10% in a consistent manner, year over year.
Dividends: This is going to be a watershed year for me on the dividend front. My goal is to receive $2,750 of dividends, which is quite a leap forward from the $1,539 received in 2014. With January being on the lower end of dividend payments for me, I am happy to report that it will never go below $100 in a month again. And on that note, the last month I’ll have received less than $100 in a month was October of 2014.
During January, I earned $133.57 in dividends from ten different companies. Below is a list of all my dividends received by company and whether those dividends were reinvested directly. If you’d like a prettier place to view these dividends received, check out my 2015 Dividend Calendar.
- Baxter International (BAX): $15.60, reinvested into 0.211 shares
- Bank of Nova Scotia (BNS): $18.43, reinvested into 0.373 shares
- Cisco (CSCO): $10.17, reinvested into 0.362 shares
- Digital Realty Trust (DLR): $26.76, reinvested into 0.376 shares
- General Electric (GE): $30.08, reinvested into 1.216 shares
- Kraft Foods (KRFT): $1.98, reinvested into 0.0303 shares
- Main Street Capital (MAIN): $6.18, reinvested into 0.219 shares
- Pepsi Co (PEP): $1.49
- Philip Morris International (PM): $21.15, reinvested into 0.253 shares
- Walmart (WMT): $1.73
As with previous months, I am directly reinvesting all my dividends until my annual dividend income falls between $2-3,000 per year in a particular account, allowing me to reinvest more selectively a few times per year. This of course is always subject to change. For the dividends in my Loyal3 Portfolio, they will be selectively reinvested as earned or combined with additional contributions monthly. You can read about the dividend reinvestment options with Loyal3 in my Snowball City – Loyal3 Dividends post. I’ve heard ‘rumors’ that once you receive $10 of dividends from one particular holding it will be reinvested. I’ll know for sure during March of this year as I receive in excess of $10 in a single payment from a stock.
When factoring in my dividend reinvestments, dividend increases, and stock purchases, my forward 12-month dividends increased to at $2,094.12. This represents an increase of $31.55 from December’s mark, and an increase of $708.12 from a year ago. Even cooler, my forward-12 month dividends average out to be $174.51 per month. Hitting my 2015 goal of $3,000 would bring that average up to $250 per month. Pretty exciting in my book!
The below chart reflects my dividends received, as well as my forward 12-month dividends since the beginning of 2013, when I started tracking things on the blog. I’ve switched this chart back to being a bar graph, as it more clearly shows the quarterly cycling of dividend income.
Passive Income Summary
During January, I received a record total of $301.58 of passive income, well diversified across my three different investment types, traditional interest income, dividends and peer to peer lending net interest. While $300 is a month not earth shattering in and of itself, just think about what $300 could buy you today?
You can find below my updated passive income chart showing my overall passive income for the last few years, since January 2013. My favorite part about this is the three-month moving average. While it isn’t fast, it is absolutely moving upward over time. I expect it to take a serious leap forward this year as my passive income jumps.
January was a great start to the year, and heck, I can even use the word PIMP on my site. Progress is being made, much like my passive income.
Don’t hesitate to look around; you can find details on the various aspects of my passive income pieces under their respective pages, Lending Club, Prosper, and the completely revamped Dividend Growth Portfolio. Additionally, you can find all of my monthly updates under the Passive Income Updates page, and all my monthly updates and incremental progress towards my 2015 goals on the 2015 Goals page.
Flickr: Chris Phutully