I always love reading blogs about other investors’ investment income. Watching other people’s passive income rise is my second favorite thing (the only thing better is watching our passive income rise!)
This report includes income from dividends and our rental properties. Although we don’t own any now, if we have other sources of passive income in the future (CDs, bonds, etc.) I’ll include them here as well.
Dividend Income
The equity portion of our portfolio is roughly 50% index funds and 50% individual stocks. The mutual funds are from when I started investing about 20 years ago. At that time I was much more interested in simplicity and a low time commitment so I could focus my time on my career. Over the last few years I converted some of the index funds into individual stocks. Unfortunately, we’ve owned the index funds long enough that selling them would generate a substantial tax burden. As a result, I’ve decided to hold the index funds and direct all new investment money to our stock portfolio. Here’s how our portfolio did last month:
| Ticker | Name | Amount |
| AMP | Ameriprise Financial, Inc. | $178.91 |
| AAPL | Apple Inc. | $54.62 |
| DE | Deere & Company | $168.86 |
| OHI | Omega Healthcare Investors Inc | $568.97 |
| VMMXX | Money Market | $18.99 |
| Loyal 3 | $11.72 | |
| Total | $1,002.07 |
I’m actually surprised that we only have 4 stocks that pay dividends in the second month of each quarter. OHI is currently our largest dividend payer. It currently pays $2,275.88 per year and that doesn’t even include the recent $15,000 addition to this position.
Next month should be better from an income position. I would expect to get around $6k in dividends from our combination of mutual funds and individual stock holdings.
Rental income
This category includes net income from the 4 rental properties that my wife and I own, plus 50% of the income from 4 rental properties that we own with my mom.
This number does not include appreciation of the properties or the decrease in the mortgage balance.
| 4 properties owned 50% | $515.32 |
| 4 properties owned 100% | -$69.54 |
| Total | $445.78 |
This is better than the negative cash flow from last month, but still not great. The properties we own with my mom performed about as well as can be expected, with no additional expenses beyond the mortgage and escrow payments. Three of the other properties are also doing well, with only a minor HVAC repair needed. Unfortunately the last property was vacant for a month and was just rented at the beginning of November (2 year lease). Our property manager takes the first month rent as their fee, so we won’t be seeing the rental income for this property until December.
Total passive income
Dividend + rental income = $1,447.85
Annualized passive income based on last 3 months of income = $32,787.58
This was a mediocre month. Dividends were low and the payment to the property manager really hurt our rental cash flow. However, December is always the best month of the year so I’m eagerly looking forward to running the next report.
My goal at the end of the year is to have projected investment income of $55k-60k based on Q4 numbers.
How did everybody else do with their passive income this month?