This month has not been the most stellar month for investment gains or dividends received. The market has been up and down but mostly down for my portfolio. None the less though, all the companies i'm diversified within are solid dividend stocks that I have full confidence in. One thing I love when the market is churning or on a down trend is adding to a current positions or averaging down. It helps average down my cost basis on positions and allows me to score some good shares of companies I love with a slightly higher dividend yield then I paid.
Some silver linings of this month are, I have a few companies that have ex dividend dates approaching and I was able to break the $700 in annual dividend projection threshold!
I first bought 12 shares of DUK on 9/19 at a price of $79.14. I since then have added another 13 shares onto my position on 10/11 at a price of $75.98. This latest addition of shares added another $44.32 to my projected annual dividends which put me at $712.82!
A few reasons I chose to add to my current position of DUK is because of the current price of the stock and because of it's most recent sale of one of it's international holdings. The company is going to be making 2.4 Billion from the sale which it is going to be putting towards debt reduction. The company also recently purchased Piedmont Natural gas for a price of 1.8 Billion which now puts the total regulated business mix to well over 90%. This will further ensure earnings and dividend growth which is the whole goal!
It's an awesome feeling to know that I have secured more passive cash flow towards my goals of becoming Financially free. The projected passive income that my Independence Fund is projected to receive is starting to become a very healthy number, and this is just the beginning of the snowball.
This snowball is going to continue to gain momentum with time on my side. The average dividend paying stock increases their dividend payout per year by a healthy 5%. if my portfolio sees a dividend raise of that level I should be expected to receive an extra $36 onto my current annual dividend payout. This is the power of my money starting to work for me.
I still have a large mountain to climb but I'm strapping down and going to make every effort I can to hit my goals! I recently have been putting a lot of thought into being able to retire from my job at 35. It does seem very impossible at the moment but I'm also currently looking into the idea of property rental. I currently am up on my property by close to $100,000. That would be with me doing a for-sale by owner. I would have enough to purchase a fixer upper and turn the next home into an investment also. The other option I have been contemplating is choosing to rent out my current home and leverage the money to add to my portfolio.
I still have a lot of research and decisions to make before I do anything drastic like that though. I also have a few fears about choosing to rent out my home to some strangers and deal with issues like tenants not paying rent and trashing the place ect. I'm usually not much of a risk taker by nature so if I decide to do something like this it would definitely be a big change.
Sorry about digressing but it has been a thought of mine recently and a big step I feel I must make to achieve my financials goals. Many rich people and banks have become wealthy by leveraging others cash for their own purposes and I would be doing basically the same thing.
Overall it has been a great year and I'm getting closer and closer to achieving my financials goals I have set for 2016. As always, thanks for stopping by and if anyone has any experience, tips or advice on property rental let me know in the comments box please.