As dividend growth investors we are focused on generating passive income. I share my dividend income reports for transparency and to show people that I eat what I cook.
In March, I generated $4,445.93 in dividend, interest, and other income across REITs, Stocks, Options, and Content. This is in addition to my part-time software job, where I’m not doing too shabby either.
If you aren’t aware, I focus on buying well-managed, higher yielding, yet still growing assets, most of which are REITs and MLPs. There are a few C-Corps that still fit the bill, but they are few and far between, although with the recent downturn, there is good value to be found and I’ve deployed additional cash over the past month to buy some of those issues to get some of the better tax benefits of qualified dividends.
Without further ado, let’s review:
|Main Street Capital||MAIN||$68.06|
|Arbor Realty Trust||ABR||$99.00|
|Global X Russell 200 Covered Call||RYLD||$48.92|
|Global X Nasdaq 100 Covered Call||QYLD||$660.39|
|Digital Realty Trust||DLR||$73.08|
|Extra Space Storage||EXR||$100.00|
|Total Dividends & Interest||$1,591.45|
|Total Side Income||$4,445.93|
The March cycle is my lowest dividend month and I don’t try to smooth out my dividend earnings, so sometimes I get $1,700 and other months I get $700. Since the beginning of the year I’ve started to accumulate shares in Starbucks. I’ve gamified this so for every $1 I spend on actual Starbucks liquid desserts, I invest $2. Sadly I’ve already bought 2 shares but need to add another 2 shares in April. Otherwise, I’m trying to conserve cash so that I can raise more runway for a startup that I’m working on. More on that startup soon. Overall, as things currently stand I’m on pace to earn over $18,000 in dividends this year, a $6k bump over last year’s total. This excludes raises that might occur and additions to the portfolio.
In March I made some major tweaks as part of a slight strategy shift and to clear out poor performers and boost income:
- Sell $ABR, $STOR, $APTS, $XOM, and $MAIN
- Buy $QYLD and $RYLD with the proceeds
Overall these stocks have not performed well with dividend cuts or they have been significantly affected by the pandemic. In the last few months dividend stocks have outperformed so this gives me an opportunity to sell into strength and reallocate. The recent downturn in tech made $QYLD in particular a very interesting investment.
EXR had a slight raise from the last dividend.
In the last month I’ve been experimenting with selling cash secured puts and covered calls on higher volatility tech stocks. This is a very interesting strategy called the wheel strategy. I wrote a twitter thread on it, but the high level is that with options you are attempting to collect time and volatility premium as income. It can have some downsides, but if you can manage your risk well, it is possible to earn some additional income. Overall, to make an additional $397 to own tech stocks that don’t normally produce income AND I’d want to own anyways is pretty cool. If you’d like to learn more about them I’d highly recommend (I’m an affiliate) the Covered Call and Cash Secured Put courses by @businessfamous. The ROI on these is probably the very highest among all the investing related Gumroad courses I’ve picked up. $20 to earn an additional $400 per month on $6k in capital is a no brainer.
Finally, there is a non-dividend & interest row. If you don’t know, I have written a book on my dividend growth investing strategy called Too Much Money. Here’s 25% discount to normal price using this link just for being a blog reader.
Overall, over 3,000 readers have benefited from the products and I’m humbled that so many people have decided to part with their hard-earned dollars to help improve their own financial situation! So thank you. Over $2,000 generated in one month is incredible and really motivates me to keep pumping out great content!
In February, I released a book on SaaS stocks as I have a “barbell strategy” when investing. My current income is supplemented by dividends and my retirement will be funded by hopefully massive capital gains from very capital efficient and rapidly growing software stocks. You can get the Intro to SaaS Stocks book for only $14. If you use the Too Much Money link above you can select the “Barbell Investing” variation of the product with the SaaS book included.
Overall, this was a very nice month! April should be another well-paying month. If I’m super lucky I’ll have a $2,000+ dividend month starting in May. How was your March?