Tag Archives : passive income

May Stock Purchase – GSK, SHP and The Importance of Income 4

The month of May continued to see markets at record highs. For someone like me who is in the asset accumulation phase of their life cycle, this is terrible news. This is because I don’t like paying top price for ownership stakes in companies. I or anyone else for that matter who has a long time horizon in front of them should wish for languishing markets so that we get the most bang for our back – we get more shares for the same amount spent. Unfortunately the persistence of low interest rates by various central banks has meant stocks are at record highs and I need to pay up […]

First Quarter Dividend Income

£347. That is the amount I received over the first three months of the year. Considering I only received £120 in the same period last year, I can safely say that my dividend strategy is slowly chugging along and proving to be successful. Yes, part of the increase from £120 to £347 is due to adding more money into my portfolio and buying more stocks. But the other part which is much more satisfying is the fact that the companies I own raised their dividends without any effort from me – more money for doing nothing other than holding shares in wonderful businesses. Sure, I’ll take that. So what does […]

I made £1500 in Passive Income last year – This is how I did it 3

One of my new years resolutions for 2016 was to build a stream of Passive Income. Unlike most resolutions which are easily forgotten once the first week of January comes to an end, this was one I was determined to follow on. I needed to stop being broke and start being flush with cash. I knew that I had to buy more money. The reasons for wanting to get started on the passive income journey are simple. I wanted to earn continuous streams of money without having to do any work. I wanted to earn money whilst I slept, ate, socialised and played football. I wanted my bank account to […]

To Be a Successful Stock Market Investor Think Like a Business Owner

Modern day stock picking is akin to gambling money in a casino, you place money on a particular ticker symbol and hope that it goes up. How many times have you read an article on that ‘one magic stock’ or seen people speculate on a single stock based on an online forum. The majority of people think that the stock market is a route to overnight millionaire status. The mass media has led people to believe this as they selectively run stories on people who have become millionaires overnight based on a single stock pick whilst sunning the countless others who have lost it all by placing everything, including their […]

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. 8

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 […]