December’s passive income dividend investing was practically a Christmas Miracle. This is the kind of monthly dividend income I needed to end the year and prime the pump for 2017.
Santa Pig brought me the best possible present this Christmas – a new monthly record for dividend income! Before I jump into the meat of it, I do want to say I’m a little disappointed. While I am very excited about the progress, and the amount of passive income I received from dividend investing this month, I’m also a little sad. This year, I was unable to reach my goal of receiving $3,000 in dividend income. It was a goal that I set last year and was very much achievable! Unfortunately, do to my lack of focus and my inability to identify values (or settle for just “okay” values), I was unable to reach my most important 2016 goal. I have a very difficult time remembering the famous quote, “time in the market trumps timing the market”. All I can say is… I’ll work harder to do better in 2017!
Let’s get to it.
This month I received $464.13 in dividend income. On average, I was paid $11.90 from 39 different companies (more accurately, 38 companies and 1 fund)!! This is some fantastic growth compared to last December!! This month’s passive dividend income is a mind blowing 65.1% increase over December 2105. However, to put it into a much more modest perspective, it’s only a 2.57% increase compared to September 2016, my last big pay month.
Passive Income Dividend Investing - December 2016
|12/1/16||Ford Motor Company||F||7.50|
|12/1/16||Wells Fargo & Co||WFC||23.03|
|12/6/16||Johnson & Johnson||JNJ||21.24|
|12/9/16||Emerson Electric Co.||EMR||3.84|
|12/9/16||Honeywell International Inc.||HON||4.66|
|12/10/16||United Technologies Corporation||UTX||2.64|
|12/13/16||Main Street Capital Corporation||MAIN||2.78|
|12/13/16||UnitedHealth Group Inc||UNH||3.13|
|12/15/16||Home Depot Inc||HD||4.83|
|12/23/16||Main Street Capital Corporation||MAIN||4.13|
|12/29/16||T. Rowe Price Group Inc||TROW||9.18|
|12/30/16||Travelers Companies Inc||TRV||7.37|
|12/1/16||Ford Motor Company||F||10.91|
|12/15/16||Realty Income Corp||O||14.94|
|12/16/16||Duke Energy Corp||DUK||31.06|
|12/1/16||PowerShares Preferred Portfolio(ETF)||PGX||2.87|
|12/9/16||Exxon Mobil Corporation||XOM||34.20|
|12/15/16||The Coca-Cola Co||KO||27.52|
|12/29/16||Union Pacific Corporation||UNP||20.92|
|12/30/16||Marriott International Inc||MAR||1.80|
|12/30/16||Lockheed Martin Corporation||LMT||5.46|
|∑ = 464.13|
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.
Looking back to 2015, I’ve come along way this year. I’ve gone from a yearly total of a little over $1,470 in 2015 to slightly over $2,800 this year – an increase of 89.57% for the year. Some decent growth to be sure! Maintaining this level of dividend income growth is going to be difficult with markets hitting all time highs unless I can become much more optimistic about the market. Like I said above, I’ll work on that.
A very Merry Christmas and some unexpected costs from my home improvement projects took a huge chunk out of my cash this month. Fortunately, we actually did receive a Christmas Miracle that kept us in the green.
Let’s do the numbers…
The sounds of Ho, Ho, Ho rang loudly from the dividend pig household this year as Christmas presents were given. Only the Ho, Ho, Ho sounded more like cash registers being rung as money was siphoned from my bank accounts to pay for said presents. To be clear, I regret none of the money we spent on Christmas presents. Frankly, I can’t think of spending money on a more worthwhile group, my family.
So, after we spent an extra $6,000 on furniture, trim, doors and paint to finish off our home improvement project – it was time to buy some Christmas presents for the the little piglet. The Sow (proper name of a female pig – she hasn’t warmed up to that title yet) and I really went totally overboard. This year we purchased a new puppy for our piglet. After some serious research we opted to go with a reputable dog breeder instead of adopting. We truly feel we found the perfect breed and dog for our family. But as you might have guessed, our new perfect puppy cost us a perfect pretty penny. We spent a little over $2,000 on this Christmas present. The combined total of these expenses cost a smudge over $8,000. Merry Christmas!
We did have some really good news that pulled this month out of the deep red. You might remember my post about my wife’s car accident from over a year ago. Well, we finally settled with the insurance company after a long negotiation that spanned over four months. December we received a check for $12,000!
I think I’m going to write a post later about my experiences with the negotiation process of settling a car insurance claim as I learned a great deal. But, the most important thing I learned is that insurance companies will work very hard to pay you as little as possible. As a point of reference, we started with an offer from the insurance company to settle for $1,400. Insurance companies will hose you if you let them.
Anyway, that brought our cash up 8% over last month!
I normally really enjoy talking about how we didn’t have any problems with our rentals. That isn’t the case this month. We received a call from our tenants at rental property #1 that water had been leaking, from somewhere, and had completely soaked and stained the 3 year old (I’d still call that brand new) carpet and carpet pad. The water leak was eventually determined to be coming from a neighbor’s shower (it’s a condo). While I still don’t have all the costs, I suspect this problem will cost us roughly $300 – $500 depending on whether the carpet can be saved.
I do want to do a little year-end wrap-up and talk about real estate for a moment. This year I have paid off almost $18,000 in principal on my mortgages. That’s about a 5.5% decrease of those balances. Which isn’t bad! The lion share of that reduction came from paying down rental property #2. My goal this year was to pay rental property #2 down to $60,000. Unfortunately, medical issues took precedence this year and that $8,000 was used elsewhere.
One thing I don’t mention often, as this blog is about dividend growth investing and not rental property investing, is rental property income. However, since retiring at 45 in the end game and my rental property will play an important part, I do think it’s worth noting at least yearly. This year I netted roughly $7,000 in rental property income. That number should pretty much stay stagnate until I raise rental rates and that mortgage is paid off (hopefully in three years).
The cars moved down a little extra this month. Perhaps because it’s the end of the year? Anyway, since I’m doing some end year calculations, I figure car depreciation should be interesting. This year my two cars lost a total of $4,005. That’s a percent decease of 18.3%! Moral of the story, do your best not to waste big bucks on cars… they depreciate so quickly!
What a fantastic month and year! Even though I was unable to reach many of my 2016 goals I was still able to raise my yearly passive income from dividend investing by almost 90%. I was also able to pay roughly $18,000 in mortgage principal… a feat in itself. I have a long way to go in order to reach my 2017 goals – but I’m optimistic!
This month’s new dividend income record does a lot to not only keep me motivated, but also to show me how much further I have to go to be able to retire in 8 years. It’s a long trek, but one that is worthy of my complete effort. Happy New Year!
How did you do this month and year? Did you reach all your 2016 goals?