Monthly Archive: April 2016

Today, I bought 19 shares of SBUX at $57.17 per share.

Their PE ratio is higher than my preference at about 33. Their entry yield is only 1.4%, and their dividend growth history doesn’t even reach back 10 years.

So you’re probably asking “Why did you buy it then? SBUX doesn’t meet your criteria.” The answer: I’m an opportunist. There’s nothing better than when investors freak out about good news because it wasn’t as good as they’d hoped. Starbucks’ payout ratio is about 49%, and their dividend growth rate is very impressive, it grew 25% last year. This is far more of a growth investment than an income investment.

Starbucks is a staple in our culture, many people can’t start their day without Starbucks coffee (my wife included). The company is not afraid to try new things, such as instant coffee, home coffee makers, and even potentially wine and spirit bars. Starbucks has a great history and a great future, so being able to grab some shares on a dip is a nice opportunity.

I’ve had my eye on Wells Fargo for a long time as a potential buy. The main reason, is Warren Buffett buys more shares of this company any chance he gets.

Today, I bought 20 shares of WFC at $50.18 per share.

At the time I made this purchase, their PE Ratio was about 12.36. Which is very attractive. Their entry yield is over 3%. Their payout ratio is around 36%, which is pretty low and leaves a lot of room for dividend growth.

This puts me at $544.72/$600.00 for my annual passive income goal for 2016, and $45.39/$100.00 for my average monthly passive income long term goal.

I think it’s important to celebrate wins on the path to your ultimate goal, no matter how small. Sharing my dividend income results with you readers gives you some insight to what is possible as you begin your journey.

My ultimate goal is to be able to live off of the passive dividend income from my investments, so I can just stay at home and play video games. Here is the money I made in March 2016 without lifting a finger.

JNJ- $7.56
CVX- $10.09
EMR- $7.88
IBM- $9.10
MMM- $7.77
MCD- $10.13
BP $31.92
LMT- $8.50

Total: $92.95

Compared to last year, I earned $64.00 in March, so I’ve made an extra $28.95. Compared to December 2015 ($89.60), I made $3.35 more. We’ve made it past the big expenses at the beginning of this year, and I’m now ready to make some new purchases. The problem is that the market has recovered, and I’ve missed the boat on some amazing opportunities. This may just end up being a war chest until something presents itself.

Do you see any good deals out there?