February’s income from dividends and net worth were on fire… in a good way! This big, bull market continues to grow by leaps and bounds and taking my net worth with it. However, it’s making it increasingly difficult to find good values and caused me (that’s my excuse anyway) to miss a pretty important goal.
Dividend Investing Income
February turned out to be an awesome month for dividend income. Nowhere near covering my all monthly expenses, but it did cover a few. My mobile phone bill, electricity, water and gas were covered by this month’s income from dividends. All my utilities (except for internet – which is pretty much a utility right?).
Lets get to it.
This month I received $203.66 in income from dividends. On average, I was paid $9.25 from 22 different companies (specifically, 22 companies and 1 preferred shares fund)! This month’s dividend investing income is a fantastic 34.65% increase over last February.
Income from Dividends - February 2017
|02/02/2017||CVS Health Corp||CVS||6.00|
|Realty Income Corp||O||15.67|
|01/02/2017||PowerShares Preferred Portfolio(ETF)||PGX||2.79|
|01/02/2017||General Mills, Inc.||GIS||15.29|
|Procter & Gamble Co||PG||10.64|
|Omega Healthcare Investors Inc||OHI||44.42|
|01/02/2017||Deere & Company||DE||5.40|
|02/02/2017||Potash Corporation of Saskatchewan (USA)||POT||3.31|
|08/02/2017||Lowe's Companies, Inc.||LOW||5.60|
|Kinder Morgan Inc||KMI||1.25|
|Main Street Capital Corporation||MAIN||2.78|
|National Retail Properties, Inc.||NNN||3.64|
|Procter & Gamble Co||PG||3.35|
|Costco Wholesale Corporation||COST||1.80|
|∑ = 203.66|
The pie chart below also shows the percentage of each payment .
Here is a chart of my passive dividend income progress over the last 2 years.
The dividend portfolio has been updated.
As I mentioned above, net worth is setting highs with the market. Whether or not this is sustainable is the question.
Let’s do the numbers…
After the last few months of seeing this number show up in red, its a great change to see some green, even if the number is small.
I’ve identified that I have a spending problem. It’s my mortgages. I spend way too much extra money paying them down. Now, as a practical point, that’s not a bad thing – and something I could scale back if I wanted. However, with the market hitting super highs, I feel like paying off debt is more in tune with my short term goals. (I’m also way behind on my debt pay down goals and would like to catch-up)
My cash includes a full year expenses emergency fund, which will stay stagnate. Some people will balk that I am being way to conservative and leaving a lot of future dividend income on the table. While I agree the opportunity cost might be high, but having a large, safe, pillow of emergency fund cash helps me sleep better at night.
As I said above, I’ve been working hard to pay down mortgages this month. I had some pretty good progress paying almost $1,000 more down then I normally do.
Interesting aside, Zillow now believes that my primary house is worth over 670k now. Its crazy. That’s over a 100k more than what I think it would sell.
The rental properties were great again this month. No problems and everybody paid on time!
Ha, one care increased in value this month! On average, they decline roughly a 1 – 2% each month.
I’m thrilled with the progress I’m making. Income from dividends is continuing to grow at a decent clip and net worth is within striking distance of the big ONE. However, I missed my goal of investing a minimum of $1,500 this month… by like $1,500. I have a huge issue with not making purchases at these inflated values. I need to get over it. While, I do have limit orders set, nothing is hitting or even getting close.
Where are we in the bull market is the question that is sticking in my mind. Do we really have lots of room to travel up? According to the Shiller PE Ratio, things don’t look that way. Are Trump’s new tax cuts and deregulation going to happen soon enough to make a difference? Can this market continue to climb this mountain of hope for the next 4, 5, 6… 12 months?
Enough of all that pessimism, lets talk about the GREAT NEWS! I am now in control of my 401k. I now have a little over 200k to invest and will start selling puts soon to begin building that portfolio. It’s going to be an interesting learning experience as I’ve never had that kind of money at my disposal.