Mr.Frugality

November 2019 – Passive Income Update

November 2019 is going to be a brief summary, not much is happening.

Securities Investments:

$522.68 was deployed in November of 2019. I am running out of money currently until the 10th of January 2020.

The following securities were purchased: BTI, GILD, MO, XOM, DBC, TRV, DGS, COMT, GLDI, KEY, VPU, XEL, GEO, and VXUS. I sold VTIP securities because I concluded that I could deploy the funds better.

I plan on very little purchases in December. I will only buy more if the market will dive down by a lot (more than 5%).

Robinhood Investment Portfolio:

The actual change in value outside of my own funds invested in October was $781.85. As of November 30, 2019, the account value is $51,788.59.

My account value increased by 1.55% in November. The increase excludes my contributions and dividend income. This increase is intrinsic.

November Dividend Income:

The $89.78 of dividend income was 16.56 times more than November of 2018. There is probably some time difference as to why the change is so much.

I noticed that since I have been investing as of January 27, 2017, my dividend yield income is 3.72%, which appears to be high and some could say that this way too high. However, I would disagree with the percentage being too high. Here is why: my account value at the end of November 2019 was $51,788.59, the cost basis of all the shares that I own is $45,627.93, and my estimated current annual income per Robinhood account statement is $1,697.64. Thus, $1,697.64 / $45,627.93 is 3.72%.

If I would have used the ending account value of $51,788.59 and divide that by the current estimated annual dividend income of $1,697.64 that would give me a yield of 3.3%. Thus, 3.72% minus 3.30% is 0.42% which is an intrinsic growth in income from dividend increases by various companies.

I wished that I had the faith in the market 20 years ago because I would have had an amazing yield rate and I would have been a very wealthy person by now.

At least I am doing proper investing now so in 20 years, I will be a very wealthy person with massive dividend income.

Overtime Dividend Income Summary Table:

Dividend Income in December should be over $200.00, which will put me in record dividend income territory.

Passive Income Summary:

Lending Club again is doing some little losses after a few months of positive returns. I won’t touch it for now but it makes me wonder if I am taking on too much risk with little return. The return shows 4.68% but is the $4,000.00 being efficiently deployed? Probably not.

Peerstret.com is doing very well again. Click on this link for a higher yield bonus. This is a good place to stay thank you to Peer Street for a total of $3,860.44 since December of 2016 on only about $19,000 invested. See the chart below.

So far this year, I have earned from various passive activities a total amount of $3,275.27. That’s pretty awesome considering that we still got December to go. These investments put me far ahead if I had that money deposited in a high yield money market account.

To my children reading this in the future. Invest wisely and consistently and everything will be just fine. The last place you want to have lots of money stored in a savings account. Be aware that any savings in a traditional bank are money used by banks to make investments for themselves. Thus, invest the money yourself instead of giving bank money to invest.

Thanks for reading.