I usually don’t post about our income sources every month unless there is a change. We have continued to receive our passive income streams during COVID-19 from our dividend portfolios, private mortgages, rental properties, and lending ring. I’m still working on getting my first check from Google.
This month is different. It’s different for us, it’s different for our country, and it’s different for the world. Coronavirus has affected everything – the economy, our lives, and of course our personal finances. This is a scary time, and I wish good health to all our readers and their families. The current situation, in which most stocks have declined, creates an opportunity for us on the investment front. Stock prices are low. Dividend yields rose. Seeing the massive support from the government leads me to believe that the situation is worse than it appears, and that suspending or reducing dividends is being considered.
For the first time since we started investing in dividend-paying companies, our portfolio is in the red. I’m so glad we never relied on capital gains. Although Mr. Market has been misbehaving over the past four weeks, our sources of income have not yet been affected. It is possible that the companies we own will reduce or suspend their dividends during this financial storm, but we cannot compare them to those whose portfolios are based solely on capital gains.
Our total income for the month of March was negative $3,404. Despite the volatility in the stock market, we earned $1,808 in profits.
Dividends
We received $1,808 in dividends from 17 companies and 1 ETF. I like that this cash flow from our dividends keeps flowing, even when the market goes down. Earning dividends when stock prices are low, as they are now, increases our purchasing power. We distribute our dividends, which fuels our future income from the dividend stream. I’ve written several times in the past year about market uncertainty and stated that it no longer scares me. I have set aside some money, and we will gradually invest it in the market.
Our monthly revenue stream is approximately $1,125. This month, more
The companies paid dividends, with MIC paying a special dividend of $568 in addition to its regular dividend of $127.
Private mortgage
Our monthly income from this investment is $1,791 before taxes. It stems from two trades that earned $1,045 and $746 each.
If you are interested in this type of investment, please read about it
Important considerations here.
Some of the money we lent for private mortgages came from rising property values and, as a result, impacted rental property income.
Properties for rent
Business as usual here. We paid $422 to keep up with the rental properties
Expenses. We had to add money because we refinanced one of our properties and received money invested in private mortgages. Income from private mortgage flows offsets this negative figure.
Lending ring
We earned $227.52 in interest on the lending episode in March. Our current exposure is 1.4%; This means that any given company we lend to will never receive more than 1.4% of the portfolio, mitigating the risk we face.
To reduce our exposure to any particular company, we reduced the commitment per loan from $200 to $100, thus lending less money but to more companies.
If you would like to take advantage of this type of investment at no cost to you, please visit the website Lending ring. I will receive a referral commission if you use this affiliate link.
Challenging times
We are a family that does not depend on financial assistance from the government or anyone else. This is the result of living below our means and saving and investing in the long term. Now, during these very difficult times, our income streams will buy more of the good companies that were discounted over the past month.
I expect this financial crisis to pass like many others in history, but for now it is creating great investment opportunities. It is very likely that real estate will be affected by the overall financial situation, and we may be able to purchase a house for our family. Providing more living space will be beneficial when the entire family is quarantined at home.