Dividend Update – 2016 Q2
So, I have finally got to a point where I can create a second post on a recurring topic – my second quarterly dividend update (and passive income in general). I must say it is a nice change from thinking about the best way to structure a topic, or from having to crystallise my point of view on a topic. You would be surprised how many times I go to start a post only to realise that there is more thinking required on the topic before I am comfortable with my viewpoint. This time however, it is all facts and figures. Bring on the stats baby!
I will leave in some information on exactly what I am reporting to give context, but my first update lists this in more detail if you are interested. There is one slight tweak this time, I have moved the “Bonds” income from the Dividends graph to the Interest graph. This is for three reasons:
- They pay quarterly, and I realised my excel document is not setup to handle quarterly dividends, only quarterly interest – oops. It’s an easy fix but that brings me on to reason #2.
- I am reporting on the money when it arrives in my bank account rather than when they announce it. This is also true for bank interest and term deposits, but not for share dividends. So it seemed a better fit to place it into the Interest graph.
- Finally, they call the money they pay me “interest” rather than a dividend – this was the nail in the coffin.
Passive Income Sources
These updates will cover passive income obtained via the investments listed below from my after tax (non-superannuation) investments.
- Shares (dividend update)
- Online Savings, Term Deposits & Bonds (interest update)
Shares (dividend update)
As dividends are paid twice a year in Australia, I track dividend payments based on the end date for the half in which the company earned the money from which they will pay me. So when a company conducts business from the 1st of Jan 2015 until the 30th of June 2015, and then pays a dividend for that period on the 20th of October 2015, I will record that dividend under “2015 Jun”. I also track the grossed up dividends before any tax I pay.
Online Savings, Term Deposits & Bonds (interest update)
Each month I record the total pretax interest that I receive for all savings accounts, term deposits and now bonds. This is recorded in the month that the money hits my bank account, and is graphed on a month by month basis.
Shares – Dividend Update
Unfortunately there has not been any moment in this one. No new dividends were announced for the six months ending December 2015. I am expecting some more but companies like Westpac are just a little slow. Still, I do expect some movement by August, hopefully with both December 2015 and potentially June 2016 announcements (if any of the companies are quick enough in their reporting).
Online Savings, Term Deposits & Bonds – Interest Update
It is nice to start seeing a downward trend in the most recent month. Not because I am getting less interest (boo), but because I am buying more income producing assets (yay). The current dip consists of a few companies and my first foray into bonds (outside of super that is). So hopefully that short-term dip will be offset by a larger increase in the next few months. I believe June is the next pay date for the bonds, so come my Q3 update we will see exactly what impact they have had on that blue line.
Of course the rental hunting is still on, and should any notable progress be made on that the blue line will plummet after the deposit is paid. I will then work on how best to track rental income when also having to pay expenses incurred when generating that income. It’s like I am becoming an accountant!
Overall Dividend Update Numbers
So I haven’t come up with a better way of reporting this since my last dividend update like I hoped I would, so I will just keep going as I had:
- Average Monthly Passive Income: $628 (down from about $670 last update)
- Average Quarterly Passive Income: $2,034 (up from about $2,000 last update)
- Current 2016 Calendar Year Passive Income: $2,993 (includes dividends labeled “2015 Dec”)
- Current 2015/2016 Financial Year Passive Income: $5,885 (includes dividends labeled “2015 Dec” and “2015 Jun”)
I am wondering if I should start graphing those numbers too. Can you tell I like graphs? Nothing is better than well visualised data.