2 Paychecks Today – Zero Work

2 Paychecks Today – Zero Work

Ok, so granted, no one is getting rich here, but the passive income continues to build.showered gold coins passive income daily dividend investor blog

The middle and the end of the month are always the times when the dividend payouts are highest, so being the final week of July, I thought I’d check in on the DDI portfolio today to see what’s up.

After logging into my WellsTrade account, I found that today I received two checks, one from Campbell Soups (ticker: CPB) and the other from my monthly Oil & Gas trust Sabine Royalty (ticker: SBR) for a total of $69.10. Nice – I’ll take it!  Since tomorrow is the last day of the month I expect to get a good number of checks then too….we’ll see.

While I haven’t written many updates recently, I have been continuing to add new positions as well as build on existing ones with the cash stream generated by the DDI portfolio. I hope to give a brief update on all the new positions in the next few days.

With all the new additions to the portfolio, I’m now on track to generate over $500 consistently each month in passive payouts. It feels good to finally complete my first goal of producing $500/month in passive income – now it’s on to $600 and beyond!

When a Dividend Increase….

When a Dividend Increase….payments go up and down dividends for life

As I´ve started to track all of the daily dividend increases and built the DDI portfolio, I´ve come across an interesting trend.

That is, when a dividend increase isn´t an increase at all.

The Secret of Royalty Trusts

If you look through the daily updates that I post to the 2012 Daily Dividend Increase spreadsheet, you´ll notice from time to time that I mark some of the ticker symbols with an asterisk (*). The companies that I mark this way are mostly Royalty Trusts – these are trusts that are setup for the purpose of distributing the royalty income generated from the sale of oil, natural gas and other commodities.

Since the price of commodities such as oil and gas fluctuate on a daily basis, this means that the income generated by these trusts varies from month to month as more or less oil/gas is recovered at the then current price for those commodities. As a result, some months the trust pays more, other months less. Because these shares show up in the daily report for stocks with ¨dividend increase announcements¨ I choose to include them in the DDI report – however, you shouldn´t be surprised when any of these trusts reduce their monthly payout.

Good news and bad…

There are many reasons for owning shares of Royalty Trusts – some investors seek them out for their tax consequences, others for their monthly income stream and some jusmonthly money payout daily dividend checks retirementt as a hedge against the price of oil. Just know that before buying shares that your payout amount *WILL* fluctuate from month to month.

There are also other issues that should be considered before buying a Royalty Trust such as the amount of reserves remain in the trust – that is, how much oil or gas is left in the ground before the well runs dry – and the trust value goes to zero. Also, because these trusts don´t report income as dividends it may make completing your annual tax return a bit more complicated. If you understand these implications however, there may be additional benefits to holding these shares besides just the monthly income stream.

Here´s a brief list of a few of the Royalty Trusts that have reported payout increases:

  • Sabine Royalty Trust – ticker: SBR
  • San Juan Basin Royalty Trust – ticker: SJT
  • Cross Timber Royalty Trust – ticker:CRT
  • BP Prudhoe Bay Royalty Trust – ticker: BPT
  • Mesa Royalty Trust – ticker: MTR

Have a question or comment about Royalty Trusts? Leave me a comment below – I always enjoy hearing from my readers!

Here´s to your investing best buys!

 

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Mid-Week Update Dividend Increases – REIT’s, Rockets & Refills

Mid-Week Update Dividend Increases – REIT’s, Rockets & Refills

Here’s a quick Mid-Week update with info on all the dividend increases for June 12-14th. A 10 day streak of dividend increases continues onward todaycasey general store dividend increase with two additional dividend announcements by Casey’s General Stores and Alexandria REIT.

You’ll find all of the dividend increases in the  2012 Year To Date Dividend Increases report  – just click the link to see the Google Docs Spreadsheet with all the details.

Thursday, June 14th

Alexandria REIT (ticker: ARE) is a real estate investment trust (REIT), that engages in the ownership, operation, management, development, acquisition, and redevelopment of properties for the life sciences industry. With a 4% increase in their quarterly dividend, the current yield is now 2.9%.

Casey’s General Stores (ticker: CASY) operates convenience stores under the Casey’s General Store, HandiMart, and Just Diesel names in 11 Midwestern states, primarily Iowa, Missouri, and Illinois. CASY raised it’s dividend by 10% but only has a current yield of 1.24%.

Wednesday, June 13th

Colony Financial (ticker: CLNY) operates as a real estate finance and investment company that focuses primarily on acquiring, originating, and managing commercial mortgage loans, and other commercial real estate-related debt investments. CLNY announced a $.01/share raise in it’s quarterly dividend which now brings it’s yield up to over 8%.

Tuesday, June 12th

Rockwell Automation (ticker: ROK) provides industrial automation power, control, and information solutions, operating primarily in two segments, Architecture and Software, and Control Products and Solutions. Also raised it’s dividend by over 10% and now pays a quarterly dividend yielding just over 2.7%

 

Investment Considerations- Read Before Investing

Continue reading Mid-Week Update Dividend Increases – REIT’s, Rockets & Refills →

A Pair Of Dividend Increases – Pack n’ Ship

A Pair Of Dividend Increases – Pack n’ Ship

Before getting to today’s dividend increases, I thought I’d give you a brief update on the DDI Portfolio. It’s no secret thfedex delivers daily dividends income stream passive cash flowat the broader markets peaked about the 1st of May and with that, the DDI Portfolio had increased to just over $150k in total value. Painful as it is, I decided to check the value of the account yesterday. The good news was with yesterday’s small bounce, the portfolio had gained back $1200 for the day, but had come off of a low of about $140k after Monday’s declines.Dropping from $150k to $140k for the month of May, brings the short-term loss for my  portfolio to almost 7%. That’s an 84% drop on an annual basis  – ouch!

So what’s the point?

what point dividend capital gainFirst off – I think this shows that it’s usually a bad idea to take daily/weekly/monthly returns and extrapolate them into annual returns. Even during the crash of 2008, the average portfolio “only” dropped 50-60% – no where close to the 84% I quoted above.

Second – If you look back at the DDI portfolio earlier this year, it was valued in the $125-$130k range. Even with the drop in May, it’s clear that we’re still on a winning track.

Finally, I’ve said it a thousand times, but as an income portfolio, the DDI portfolio continues to generate $500-$600 per month in income, no matter what the underlying stocks do on a daily basis! That’s money that I’ll reinvest into more and more income producing stocks, that will generate more and more income…

Dividend Increases for Wednesday June 6, 2012

FedEx (ticker: FDX) – provides transportation, e-commerce, and business services in the United States and internationally in four segments: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. FDX announced a $.01/share dividend increase in it’s quarterly payout – putting the new yield at a measly 0.7% yield.

public-storage-pays-dividends-cash-shareholders-passive-incomePublic Storage Preferred S (ticker: PSApS) – operates as a real estate investment trust (REIT), that engages in the acquisition, development, ownership, and operation of self-storage facilities in the United States and Europe. The preferred S shares of PSA now have a quarterly payout of $.3688/share, up just over $.04/share – giving investors a current dividend yield of 5.7%. These preferred shares are currently trading at a premium to their $25 call price – currently trading in the low $26 range. You’ll need to factor this potential capital LOSS in to your investment analysis before adding any shares of this self-storage play.

Have questions, comments or feedback? Post a comment or drop me an email.

You can reach me at: dailydividendinvestor@gmail.com

That’s your daily round-up for Wednesday, June 6th – thanks for reading!

For my 2012 Year To Date Dividend Increases report  please click anywhere on the chart below.

Company Ticker Yield New Old Frequency
FedEx FDX 0.7% .14 .13 Quarterly
Public Storage Pr. S PSApS 5.7% .3688 .32778 Quarterly

 

Investment Considerations- Read Before Investing

Continue reading A Pair Of Dividend Increases – Pack n’ Ship →

4 Dividend Increases For Tuesday June 5th, 2012 – Looking For Higher Yields?

4 Dividend Increases For Tuesday June 5th, 2012 – Looking For Higher Yields?

june monthly dividends passive retirement cashflow incomeFour dividend increases were announced today, including two with yields in the 7-8% range. I’m all for sprinkling a few higher yield holdings into the portfolio to juice the returns, but keep in mind the risk:reward trade off that goes along with higher yielding investments.

A Quick Update About The DDI Blog

While I’ll continue profiling the daily dividend updates on days when increases are announced, however I’ve decided to stop producing the daily update spreadsheets. Instead, I’ll just add each of the daily increases to the 2012 Daily Dividend Increases Report.

Four Daily Dividend Increases

Flowers Foods (ticker: FLO) – produces and markets bakery products in the United States, where it operates in two segments, Direct-Store-Delivery (DSD) and Warehouse Delivery. FLO announced a $.01/share dividend increase in it’s quarterly payout – putting the new yield at 2.8%

Hospitality Property Trust REIT Preferred D (ticker: HPTpD) – is a real estate investment trust (REIT), that engages in buying, owning, and leasing hotels including Courtyard by Marriott, Residence Inn by Marriott, and Staybridge Suites. The new quarterly payout is $.4453/share, giving investors a current dividend yield of 6.7%

John Hancock Holdings Equity Fund (ticker: HEQ) – is  an equity and income fund managed by John john hancock equity fund passive income stream daily dividend investorHancock Companies. HEQ announced an increase to $0.3337/share in it’s quarterly dividend, which brings the yield to an eye-poping 8.8% yield.

Lowe’s Company (ticker: LOW) – together with its subsidiaries, operates as a home improvement retailer. LOW announced a $.02/share dividend increase in it’s quarterly payout – the new yield is ~2.4%

You can reach me at: dailydividendinvestor@gmail.com

Company Ticker Yield New Old Frequency
Flowers Foods FLO 2.8% .16 .15 Quarterly
Hospitality Prop. Tr. Pf. D HPTpD 6.7% .4453 .43047 Quarterly
John Hancock Hld Eq Fund HEQ 8.8% .3337 .3237 Quarterly
Lowe’s Companies LOW 2.4% .16 .14 Quarterly


Investment Considerations- Read Before Investing

As always when evaluating investment opportunities it’s important to keep in mind not only the fundamentals o smart investing ideas daily dividend investor dividendguy considerations  income stream portfolio stocks retiree passive cashflow mutual fundsf the stock itself, but also how the holding entity (Limited Partnership,Royalty TrustMaster Limited PartnershipBusiness Development CompanyPreferred Stock) may affect the way you report income on your annual tax return as well as the amount or percentage of tax  you will be required to pay. Adding shares of any of these special entities to tax deferred / retirement accounts may also present additional issues.

Please remember to review all of the fundamentals of any company BEFORE you invest – do not simply buy a stock based on the dividend payout. As always, if you have further questions about any stock mentioned her you should first consult with your CPA or tax planner / advisor before making any investments.