Monthly Income Update: June 2011

Monthly Income Update: June 2011

As I had anticipated, June was a very good month for the DDI portfolio bringing in $556.14 in passive income for the month.

It was the first (and only) month in the 2nd Quarter in which the portfolio reached it’s goal of $500.00/month in passive cash flow.

While the income for the month blew through the monthly $500 goal, beating it handily by over 10%, it wasn’t enough to make up for the short-fall in both April and May.

Stocks In-play

My usual monthly dividend payers performed well again this month, although SBR was down slightly month over month, next month Realty Income should be up a bit as the company just announced it’s most recent quarterly dividend increase.

• Realty Income REIT (ticker: O) – $86.74
• Sabine Royalty Trust (ticker: SBR) – $48.29

This month the DDI portfolio got a sizable income boost from it’s holding of 200 shares of Merrill Lynch Preferred “D” securities. I added these shares to the portfolio way back in July of 2008 at $18.24/share, right in the middle of the financial crisis.

Without the buyout of Merrill Lynch by Bank of America, these shares could have easily become worthless, but in the end I should be able to lock in a cool 30%+ capital gain when these shares are eventually called at $25 each.

Other Events

It was another fairly quieet month for the Daily Dividend Investor portfolio. A good month income-wise, there were no additional sales or redemptions of any shares or unit holdings this month.

Moving Forward Growing the Portfolio

As I’ve built and maintained the portfolio over the last year, I have not added or removed any capital (cash). Looking forward I have a decision to make:

1. Keep investing all dividends as is and continue the organic growth
2. Add new capital to increase the portfolio’s returns even faster
3. Remove capital as it becomes available for fun and pleasure

Of course door #3 sounds the best right now, but I’d really rather see the monthly and daily returns get even larger, so I am looking towards starting to add additional capital to the portfolio each month moving forward. Once I decide how much to add and how to deploy the new funds I’ll update the blog with my thinking, but look for some changes as we move into year #2 of the Daily Dividend Investor portfolio!