Where are we at with our passive income? After all this is just as important as measuring our net worth, if we can’t generate enough income to pay for our living expenses, that we won’t be financially free no matter what our net worth is.
Dividend Income
Here is a list of the stock investments we have with dividend income in 2008:
|
| Annual Dividends |
| ||
| Investment | 2005 | 2006 | 2007 | 2008 |
| Pepco | $ 18.85 | $ 20.48 | $ 21.31 | $ 22.67 |
| AT&T* | $ 166.38 | $ 51.78 | $ 18.48 | $ 20.80 |
| CMS | $ - | $ - | $ 12.02 | $ 21.99 |
| Connoco | $ - | $ - | $ 28.49 | $ 44.78 |
| Chevron | $ 21.62 | $ 25.62 | $ 29.71 | $ 34.16 |
| Duke Energy* | $ 88.66 | $ 108.56 | $ 92.15 | $ 100.98 |
| Edison | $ 11.88 | $ 13.16 | $ 14.48 | $ 15.57 |
| ExxonMobil | $ 54.68 | $ 62.76 | $ 70.07 | $ 80.66 |
| GE | $ 73.91 | $ 86.29 | $ 99.58 | $ 114.97 |
| IBM* | $ 251.37 | $ 431.23 | $ 459.98 | $ 555.74 |
| Lowes | $ 2.70 | $ 4.34 | $ 11.37 | $ 14.59 |
| Medtronic | $ 22.80 | $ 30.85 | $ 39.97 | $ 53.74 |
| Merck | $ 108.56 | $ 198.82 | $ 206.25 | $ 212.83 |
| P&G | $ 31.09 | $ 35.19 | $ 40.33 | $ 46.94 |
| Pfizer | $ 300.02 | $ 592.73 | $ 803.70 | $ 972.66 |
| Spectra | $ - | $ - | $ 29.95 | $ 45.07 |
| Anheuser Busch | $ 54.00 | $ 113.54 | $ 128.49 | $ 147.58 |
| Microsoft | $ - | $ 0.56 | $ 0.66 | $ 0.75 |
| Johnson & Johnson | $ - | $ 12.42 | $ 14.18 | $ 16.13 |
| Marsh&Mclennan | $ - | $ - | $ 10.76 | $ 46.14 |
| Wachovia | $ - | $ - | $ 23.95 | $ 360.57 |
| VXF | $ - | $ 40.89 | $ 69.99 | $ 66.84 |
| VWO | $ - | $ 1.02 | $ 87.34 | $ 108.32 |
| VTI | $ - | $ 0.20 | $ 0.76 | $ 96.93 |
| KBE ETF | $ - | $ - | $ - | 92.58 |
| Total | $ 1,206.52 | $1,830.44 | $ 2,313.97 | $ 3,293.99 |
Note: This is dividend income from individual securities I own in taxable accounts. This does not include assets in 401k or Roth IRA.
*I sold a portion of these holdings during 2006or2007.
My dividend payments in these taxable accounts were up 42% from 2007. I am looking for 50%+ growth at least for the next couple years given the relatively small amount of dividend income I receive.
Interest Income
|
| 2004 | 2005 | 2006 | 2007 | 2008 |
| Interest | $39.76 | $783.99 | $1,426.15 | $3,076.01 | $2,595.98 |
The amount of interest I earned in 2008 actually decreased largely due to us taking advantage of less 0% Balance Transfers offers that we took advantage of in 2007. We currently have most of my savings in our Vanguard Prime Money Market.
Rental Property Income
2008 was the first full year for our second rental property. We received a net $931.87 after all the expenses for both rental properties were paid. This number was unimpressive largely because of the additional expenses we had due to management fees, repairs we had to outsource since we spent most of the year on our international assignment, and a break-in at the second rental property.
Summary
Overall, my passive income is up 10% from 2007:
|
| 2005 | 2006 | 2007 | 2008 |
| Total Passive Income | $1,990.51 | $5,066.95 | $6,188.36 | $6,821.84 |
I am again diappointed in our passive income growth. I had hoped we would have surpassed $10,000 in 2008, but fell well short. 2009 will even be a greater challenge given our shifting capicity to invest, dividend cuts taken by several of our investments, and falling interest rates.
Also see my 2005 passive income, 2006 Passive Income, and 2007 passive income reviews.
Read more of 2008 Passive Income Review…
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