Tag Archives : passive income


December Dividend Income – How to go about building a dividend machine as a beginner 7

If 2016 has taught me anything, it would be that dividends are king. Throughout the volatility, political shocks and market turbulence, one thing has remained certain – great companies that I have shares in have paid me an increasing stream of dividends. Make no mistake, this is no accident. The truly great companies make profits no matter the market environment Take Royal Dutch Shell (RDSB) for instance. It has paid out an ever increasing dividend for over 60 years now. This means that it has not cut its dividends during times of war, political upheavals, recessions, revolutions, oil embargoes, financial crises all that has happened in between. It is a […]


National Grid Share Purchase – The Ultimate Blue Chip Bond Proxy

In the current low interest rate world, investors have had to bend the rule book. Whereas in the years gone by, you could get a safe and stable income via a portfolio of bonds, it is no more the case. Investors have had to turn to stocks (equities) of companies who produce predictable cash flows year after year in order to get their required level of income. They have had to turn to dividends from bond proxies. What are Bond Proxies? Bond Proxies are shares of companies whose cash flows and profits are very consistent – like coupons paid on a bond – and they also pay out a large […]


Stock Purchase: Merchants Trust and Dunedin Income Trust – Buying Investment Trusts at a Discount. 7

As I write this in October 2016, stock markets are at record highs and the very best businesses are trading at high valuation multiples. The FTSE 100 has crossed the psychological 7000 levels and is trading at a P/E of above 20 and a dividend yield of 4%. This is in stark contrast to the beginning of the year when it was trading at 5800 and the market was yielding 4.9%. For investors that sunk m money into the markets during the lows of Jan/Feb of this year, it has turned out tone an excellent deal as they were able to buy many stocks at a discount of 10% – […]


My Journey to £1000 in Annual Dividend Income 9

Just over a year ago, I bought my very first dividend paying stock in the form of BP. Little did I know that this one little purchase would lead me to become a dividend junkie and scream with excitement every time a dividend cheque hit my account. But that is exactly what has happened and I am sure glad I took that initial first step. I am now elated to say that I am expecting to receive £1000 in dividends over the course of the year. This post is there to discuss how I went from having 0 in dividend income to hitting the 4 figure mark. I will also […]


September Dividend Income 4

Another month passes by and another set of dividends have hot my account. Owning shares in companies is really starting to feel wonderful. For September, I have received £236.70 across both my ISA and my high yield dividend portfolio. This is by far the biggest month I have had over my short investing career. I am beginning to love the fact that cash goes straight into my account without me having to do any work or put in any effort besides the initial stock purchase. I could be in in jail but still make money due to having the right collection of cash generating assets. This is the beauty of […]


March dividends – The weak pound is great for Shell (RDSB) and BP investors 2

March has been a great month for dividend income. I received dividends from two of my biggest holdings, Royal Dutch Shell (RDSB) and BP. Even though I bought these shares with a chunky yield of about 8% each, I was pleasantly surprised that I had received more dividends than I had anticipated due to the weak pound. As a result of the weakening of the Pound (GBP), I have received a total of £121.73 in dividends this month. A weaker Pound (£) against the USD ($) is great for my BP and SHELL (RDSB) stock! Both Shell and BP set their dividends out in dollars ($) each year. This makes […]


Cashflow Makes You Rich 2

In Personal Finance as in business, the only thing that really matters is how much money is combing in. Cashflow is king and there are no two ways about it. Understanding cashflow – the money you bring in against the money that goes out – is a great tool in the locker of you becoming wealthy. Having more money come in than go out and investing the difference is a great way to become very wealthy over time. This sounds simple but many people don’t abide by this simple rule. One of the reasons is because they don’t truly appreciate the power of positive cash-flow and wonders it can do […]


The Wonderful Feeling of Owning Stocks in Companies 2

I’ll never forget the first time I got dividends paid into my brokerage account from the first shares I ever bought. To say it was a wonderful feeling is an understatement. The thought occurred to me that being a part owner of a company is so much better than being an employee where you work your socks off for the benefit of someone and else and always have the worry of being laid off. It was passive income at its best. The first dividend payment felt like a whole new way of viewing the world. Even though the amount i received was small, the impact it has had is priceless. […]


What is Passive Income – 12 Ways to Earn Passive income 15

For many people who want to be financially free, passive income is the ultimate goal. Passive income allows you the opportunity to do what you want to do without thinking of where your next pay check is coming from. Imagine this: You hop on a flight to Spain or Tunisia or Thailand. You spend a month revelling by the sea and sand.  You taste new foods. You discover new music. You spot wildlife you’ve never imagined. You have the time of your life. You don’t check email the entire time. Heck, you don’t even post photos to Instagram or Facebook. You’re radically offline — like it’s 1974. You return to […]