Passive Income – August 2008

For most of the month of August I was gone, first on a family vacation in Michigan, then on a trip to the badlands. So, how did all that travel affect my passive income? Well, my AdSense revenue declined since I wasn’t around to post any new content, and I spent all my money in July, so my interest income was a classic example of an epic fail.

  • Interest: $30.89
  • Dividends: $44.88
  • Credit Card Rewards: $81.53
  • AdSense: $11.41
  • Text Ads: $29.91
  • Surveys: $18.00

Leaving me with $216.32, not too shabby.

Continue reading Passive Income – August 2008

REITs

With the housing market falling faster than Bush’s approval rating, Real Estate Income Trusts (REITs) are a shaky investment at best.

The good news is that you can buy into REITs that only invest in business real estate or development properties, and that can help reduce the risk.

Most REITs also pay great dividends, so for my long term dividend investing strategy they fit nicely. Here’s the problem though, a lot of REITs are either based out of Canada or are considering reducing or stopping their dividends, not cool. Case in point, CapitalSource (CSE) has announced that they’re thinking about putting the kibosh on their dividends for the time being to help combat the rising costs of operating in a floundering economy.

A huge drawback of the Canada REITs is the dividend is taxed both in Canada and the US. Boo!

Thoughts or opinions?

New Investment Strategy

It’s no secret that I like to dabble in the stock market, and that I’m trying to generate a decent income from dividend stocks.

With that in mind, I’ve decided to start taking the entire balance earned each month through my Passive Income Project and invest it in various dividend stocks. Now since I’m only making around $125 a month in passive income, I’m planning on setting that money aside on a month to month basis and investing it in a different stock every 3 to 6 months.

Since I’ll be making smaller trades than I usual do, I’m considering getting an account with Zecco so I can invest while avoiding that pesky $12.95 per trade fee with E*Trade.

The general idea is that I’ll be able to both expand my stock holdings as well as my return from passive income. I’ll post updates as I make purchases.

Dividend Stocks

2006 was the first year I purchased a dividend yielding stock, and it was quite by accident, I didn’t even know it yielded a dividend when I bought it! I made a whopping $3 off of dividends that year.

In 2007 I did a bit better, I actually focused on buying a few small dividend stocks. My total gains (from dividends) for 2007 were $95.38.

Six solid months into the year and my quest for dividend stocks is proving far more fruitful. Thanks largely in part to a hefty jump start in investment collateral from selling off some shares of Apple and seeing a 63% return on a 12 month investment.

My goal for 2008 is to make close to $300 in dividends, in pursuit of that goal, I recently purchased 300 shares of a stock which is currently yielding a beautiful 18.80% dividend, paid out monthly. The stock itself has decent growth potential over the next few years as the market corrects itself, and in the meantime is setup in a dividend reinvestment program.

And while I’ve considered a lot of the bank stocks which yield decent dividends for my next purchase, I doubt I’ll invest in any of them considering the trouble the banking sector is in right now.

Anyone else trying their hand at dividend investing?