My Investing Journey with Passive Income and Stock Market investing

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YEAR OF 2020 in Review

My Total Passive Income for the year was $3300. $1315.63 of that came from dividends; therefore, dividends represent 40% of my PASSIVE INCOME.

DIVIDENDS

I saw a 37% increase in my dividends in my brokerage account. My retirement accounts only saw a 7% increase. However, that is to be expected as I am maxed out on how much I can add to my retirement accounts (no 401K for me!).

I made $683.01 from stock trades this year. Only $214.56 were short-term capital gains. I am not much of a trader, I might do a swing trade once every two months or so. I’m more of a long-term investor.

After running the numbers, it appears I increased my TOTAL NET STOCK/EQUITY worth 32.56% this year. This means that I now have that much more in the markets than I did at the end of last year. Some of this is due to Capital appreciation, some is due to contributions. I will give an EXACT PERFORMANCE number here in a week or so, after I get the data from my broker.

GOALS

1)Reduce the number of positions in my brokerage account to 15

2)Add another 10K into investments

3)Get my Patreon Passive Income up to $200

4)Increase my monthly Youtube income to $75

5)Create some sort of Ripe for Investing product. I have NO IDEA what this will be yet

6)Increase my investment in Silver Age Graded Comic Books. I want to add more hard asset, collectibles to my portfolio. Some unopened Pokemon boxes will be added as well

7)I believe we may be facing a sideways market in the next year or two, so I think I’m gonna invest a bit more into dividend stocks. For the last 7 months I’ve been heavy in NON-DIVIDEND stocks, so I want to change course a big.

Some final words:

December is looking fantastic; so far, it looks like I will pass the FIVE HUNDRED DOLLAR mark. I can’t believe it, just a few months ago, my goal was to pass $300. I’ll be bringing you that report on the second week of January, so stay tuned.

NOVEMBER PASSIVE INCOME REPORT

Digital Products $39.99

Adsense $4.99

Amazon Affiliate $2.25

Skillshare $41.12

Patreon $114.94

Youtube $47.82

Dividends $74.67

Retirement Dividends $21.34

Credit Card Rewards $13

Bank Interests $13.32

TOTAL PASSIVE INCOME FOR THE MONTH OF NOVEMBER: $373.44

So far, this is the highest passive income I’ve had up to this point. My Patreon is still growing (up 14% since last month!). I also did pretty well with my Digital Products (Sheet Music and TABS).

Dividends were over $50 so not bad, but I do look forward to getting back to over $100 in dividends.

OCTOBER PASSIVE INCOME REPORT

Here is my October Passive Income Report:

Patreon-$113.29

Adsense-$5.34; traffic is down on my music website considerably. Not sure what is going on but ever since I converted to https my traffic has dropped off! This truly affects ad revenue.

Dividends $69.13

Amazon Affiliate $0.18; Once again Amazon continues to be the weakest link, just a few book sales via clicks on my youtube channel.

Credit Card Rewards $6.25

Credit Union Rewards $14.27

Skillshare-$31.52

Digital Products $12.55; had a few TAB sales but most were of the lower priced tier, so it didn’t amount to much.

Youtube $29.28; It FINALLY happened, I’m able to monetize my music channel on youtube. Looks like that is going to net me around an extra $30 per month.

TOTAL PASSIVE INCOME FOR OCTOBER is $278.62

This is a little less than last month, largely because I didn’t make any video sales through TEACHABLE as normal. I still have my prize on making over $350 in passive income over the next couple of months. I think I got this now with the extra Youtube ad revenue.

December Market Moves-Kroger, Netflix, 3M

December was an interesting month for me. I can’t say I added a whole lot of new capital to my account. I did sell some stocks and use those funds to make new purchases though.

The first stock I sold was Krogers. I originally said I was going to hold Krogers for a very long time. However, I am just not pleased with these reports. GAP earnings has declined -17.95% quarter to quarter and the trailing last three quarters it is down over FIFTY PERCENT. Now granted I didn’t sell all of my KR, I only sold half for an 8% profit not counting dividends. I just think there is very little room for the run up here, I see 29 as the max share price for awhile and very potentially going back to 25 in the near future. KR doesn’t have the greatest dividend either, I got in around a 3% yield but now it’s 2.5%; although I must say it’s a great dividend grower. Growing it’s dividend 14% annually this year.

I sold a good bit of my Fidelity Health Care Services mutual fund as well. I held this in both my IRA and Brokerage account. I wanted to reduce my weight in the IRA and want to get out of it completely in my brokerage. It doesn’t pay a great dividend and the capital gain taxes at the end of the year are a bit of a nuisance in my taxable account. I’m also not looking forward to it’s volatility as we enter a presidential race. I’ve seen enough of that the last year to last me a lifetime. I will continue to hold a decent position in my IRA for long-term but will reduce out of my brokerage exposure as I’m eligible for LONG-TERM CAPITAL GAIN TAXES.

I sold 1 share of 3M as well. I then used this money to help buy more Netflix, hahaha. Sorry, but I just do not have the enthusiasm some of my fellow dividend investors have about 3M. It’s not one of my favorite stocks in my portfolio. I bought it simply because I got a great price on it. It was in my IRA so no taxes to pay on it.

What did I buy?
Yes, I bought more Netflix believe it or not. Yes, a value/dividend investor buying Netflix. I won’t go over my NFLX convictions again despite it’s high P/E and negative cash flow; I’ll just say I’m taking a risk here but it’s a risk I do believe in.

Still buying Ryman Hospitality, Westrock and Six Flags. Also bought $100 worth of General Mills before earnings and $100 worth of Darden Restaurants before earnings. Darden’s report was pretty decent but the stock went down 6% that day only to recover 2% of it the next day.

Using Fidelity Stock Screener

In the video below I go through how to use Fidelity’s Stock Screener. I get A LOT of the resources on their nicely done website. It helps me reduce the amount of stocks to research and zero in on particular strategies I’m looking for.

First, I take you through a Dividend Stock screen, looking at a medium range yield and higher dividend growth. As always, it’s important to look for stocks that are growing their dividends, not only ones with a high yield.

Next, I add in metrics like Price to Book. This is used by many investors for a basic screen. I then add a Price to Cash ratio to my screen. Now we have stocks with nice dividends, dividend growth and decent metrics.

One of my favorite tools in the Fidelity Stock screener is being able to search above 52 week lows. That way you can find stocks that MIGHT be undervalued, that might be trading at lower multiples.

Perhaps you want a stock with lots of growth and good Return on Equity? Low Beta? High Profit Margins?

You can find these specific targets using Fidelity’s Stock Screener. The more metrics you use, the less stocks there are to weed through.

As always, numbers can only tell you so much. They don’t tell you about what’s going on in the economy day to day necessarily or particular challenges the company is facing. So a stock screener is not enough research but it’s a good start.

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