MonthlyCents – January 2017

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Hi Everyone,

Getting 2017 started on the right foot, we had another month of solid financial progress.  While we still sit a long way from our eventual goal, it’s nice to see consistent growth across our passive income streams.  Typically a slow month, we  wound up bringing in $291, which is nothing to complain about!  I’ve done our best to sum up everything going on with our financial life in the sections below.

Dividend Income

Ticker Amount Received Notes
BNS
$45.18 Steady Income
CSCO
$87.10 MVP of the Month
DIS
$14.82 Small Yield
GNTX
$4.50 First dividend on this position
GPC
$44.05 Foundation Stock
GSK
$27.26
PEP
$33.87
TRN
$14.08 Top Performer
WMT
$20.50

Month Total $291.00

YTD Total $291.00

Quarter over Quarter Dividend Income Growth

Month Dividends % Increase  Month Dividends % Increase  Month Dividends % Increase
10/2016
$237 70.5% 11/2016 $252 -1.5% 12/2016 $1096 13.7%
01/2017
$291 22.2% 02/2017 03/2017

Top Performers (Price Growth)

All have dropped a bit since December’s update, but still performing nicely (while, of course, I collect their dividends!)

Ticker Shares Cost Per Share Current Share Price Gain
TRN
128 $19.68 $27.74 41.0%
CMI
36 $107.00 $147.01 37.4%
MPC
41 $35.59 $48.36 35.9%

Foundation Stock Update

Target had rebounded a bit, but went right back down recently. I’ve done some value averaging down so hopefully it’ll turn around soon. Looking at these 5 as a whole – I’m very happy with the returns.

Ticker Purchase Price Current Price Price Growth Dividends Collected
JNJ
$102.71 $113.13 10.1% $224.00
AFL
$59.28 $70.35 18.7% $119.53
GPC
$84.83 $97.08 14.4% $114.41
TGT
$72.61 $64.12 -11.7% $252.52
MMM
$140.49 $175.42 24.9% $109.72

Dividends for Charity Update

Learn more about Dividends for Charity hereIn year 1, I am re-investing my dividends in order to kick-start the fund.  By Year 2, it should easily be able to support my $25 monthly donation to Children International and on its way to supporting 2 monthly donations (and more!)

Value of the fund dropped a bit since last month, but still pacing well above what it needs to, and dividends have produced the exact number I’ve needed for donation.

Month/Year Donations Made Portfolio Dividends Portfolio Price Growth
Dec 2016
$125 $133 $537
Jan 2017
$150 $150 $441

Watch List for Next Month

A lot of the same this month.  Doesn’t seem to be too many good “bargains” out there so it’s best to maintain the same strategy: Add more shares of everyday brands with plenty of money to keep paying/raising their dividends.

Beaten Down: MAT, SO, TGT

Growth: DIN, DRI

Slow, Steady, and Safe: ABBV, GPC, AFL, MMM, EMR, T, AWR

Lending Club Progress

Since I re-invest all my proceeds it’s hard to keep track of a return rate here.  I’m looking to simply have my interest received outpace my charge-off amount, so that’s what we’ll track here.

I’m starting to see some significant increases in my default rate.  As of now, my rate of return is slowly declining.  I’m nowhere close to losing money, but I’m concerned with the recent trend.  I’m going to stop adding new capital until I see some positive signs of recovery.  Dividend investing and re-investing allows our money to create a snowball effect.  My fear is that lending club is having the opposite effect in that more and more of my capital is being lost due to defaults.  That being said, I’m going to avoid making a knee-jerk reaction and see what happens.  If I decide to eventually stop my re-investment plan, it will be a steady source of income for a few years as I “cash out”.  We’ll see what happens!

Month/Year Total Loans Interest Received Charge-offs Delta
Dec 2016
405 $1019 $210 $809
Jan 2017
 419 $1192 $280 $912

Progress Towards $30,000 Passive Income Goal

Year Dividend Income Adj. Lending Club Income Total Income Progress Towards Goal (YTD)
2016
$4517 $590 $5107 17.0%
2017 (YTD)
$291 $103 $394 1.3%

Lauren and I had a great start to 2017 and our income snowball is definitely on its way to providing significant income in the future.  With a couple of bonuses paid at work, we invested a significant portion of money into the market.  I had a fun work trip to Las Vegas, and she just got her hair done, so in no way were we living a deprived life! I expect to see some nice dividend income increases for the rest of Q1/Q2 of this year because of what we were able to accomplish this month.  We will continue piling money into the market in hopes of hitting our goal of $10,000 of passive income this year.  Based on where we sit now, we will have to make big progress in the next few months to accomplish it.

Also – coming soon will be a brand new section for some food recipes.  Lauren admittedly had a bit of a busy year last year, so we temporarily took that section of the site down.  With renewed enthusiasm we’ll be adding a new section to the blog this month and updating it regularly (she’s looking forward to getting back into it!).

Thank you for reading! I hope you all had a productive January as well!

You can see my full income summary here.

**All prices and results are accurate as of 1/30/2017

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http://monthlycents.com/2017/01/19/monthlycents-january-2017/

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5 Comments on "MonthlyCents – January 2017"

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Chris Salamone
Guest

Good call on the Utilities sector, defensive and nice dividends!

I see a correction coming too.

Dividend Daze
Guest

That is a solid month. Every month is more progress toward your goal. I know a lot of members in the DGI community, including myself, picked up some TGT since the price is so appealing.

Dividend Driven
Guest

Thanks for sharing. I am looking at WMT, GCP, and DIS this year closely.

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