Q&A For The Daily Dividend Investor – The Top 5

I’ve been collecting questions from readers of the blog and folks checking out the YouTube channel over the last few months and finally sat down and put together this Q&A video. I hope this will give you a little better sense of how I think about and manage the DDI portfolio.

Take a look and let me know if you have questions about the Daily Dividend Portfolio – you can drop me a line at info@dailydiviendinvestor.com or leave a comment here or on the YouTube Channel.

Enjoy!

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Daily Dividend Portfolio 6 Month Update – December 2014

Daily Dividend Portfolio 6 Month Update – December 2014

holiday shopping for passive income more cash gifts wealth creation passive income ddi blogThe DDI Portfolio has mostly been on auto-pilot these last 6 months, but has not only continued to pump out the dividends but has had a nice 3% capital gain since the last update in May. That’s a 6% annualized return, on top of the roughly 5% average dividend return the portfolio generates on an on going basis.

DDI Portfolio Holding Changes

You can take a look at the current portfolio as well as the May portfolio here: DDI Portfolio Current Holdings – December 2014

You’ll probably notice that even though I’ve mostly been hands off, I did make a few changes.

I started out with a few trades including:

ddi stocks buy sell trade exchange incomeBOUGHT

Aflac – AFL  50 Shares
Cincinnati Financial – CINF 50 Shares
National Retail Properties – NNN 100 Shares
Tupperware – TUP 50 Shares
Vector Group Ltd – VGR 10 Shares
CBRE Clarion Global Real Estate – IGR 300 Shares
Gladstone Investment – GAIN 300 Shares

SOLD

California Water Service Group – CWT 400 Shares
Douglas Dynamics – PLOW 50 Shares
Gladstone Land – LAND 200 Shares
Sherwin Williams – SHW 5 Shares
Metlife Preferred – MLU 25 Shares

Also during the last 6 months one of the DDI holdings, Northstar Realty Finance issues new shares via a spin-off leaving the portfolio with:

150 Shares of NSAM – Northstar Asset Management
and
150 Shares of NRF – Northstar Realty Finance

More updates coming soon

Thanks for following along on Facebook and Twitter as well as the blog updates. Remember, I’m always interested in your thoughts and ideas, so if you have a question or comment, don’t hesitate to drop me a line.

That’s it for now – Talk soon!

30 Days of Increased Dividends and Counting…

massive dividend increase 30 days passive activity30 Days of Increased Dividends and Counting…

With Monday’s dividend announcement by both Game Stop Corp (ticker: GME) and ITC Holdings (ticker: ITC) we’ve now seen 33 straight days of dividend increases! In 2012 alone, we’ve seen well over 500 dividend increases with a number of companies announcing multiple increases.

Improving Economy?

The fact that we continue to see more and more companies increase their dividend payout is a good sign that the economy and the markets in general are continuing to improve.

On a regular basis I continue to read that more and more investors are pulling money out of the stock Continue reading “30 Days of Increased Dividends and Counting…”

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!

 

Buying stock today! Are you crazy?

I admit it. I bought stock today.guy pulls out hair crazy investor daily dividend income passive cash flow

I know, the markets are going to ZERO, the double dip recession is just around the corner, thousands more employees are getting pink slips and real estate will never get better. We’re all going to HELL!

But I bought anyway…

Continue reading “Buying stock today! Are you crazy?”