May 2014 Dividends/ Option Income

Only three of my companies paid out this May, bringing in a total of $163.41. This is an improvement of 83% over what I received in 2013. The majority of this increase was due to substantially increasing my stake in Apple as well dividend increases by both AAPL and KMI. I’ve made more already through May than I took in during the entire year of 2012.

I did not have any option income this month. As soon as my radiology board exam is done I’m hoping to devote more time to generating additional option income.

Symbol Dividend Amount Shares Bought @ Price
AAPL $96.51 0.1646 586.3996
KMI $57.78 1.7285 33.4283
O $9.12 0.2101 43.4158

Total dividends for May 2014: $163.41
Total cumulative dividend income for 2014: $716.11
Forward 12-Month Dividends: $2238.46


Total option income for April 2014: $0
Total cumulative option income for 2014: -$178.14

Full disclosure: Long AAPL, KMI, O

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8 Responses

  1. Martin says:

    Nice income for the month as well as the overall one. What options strategies do you do?
    Martin recently posted…The best trade everMy Profile

  2. scott says:

    Thanks, Martin. Awesome trade on GME too! This summer I’ll be starting to sell put options. Unless I can envision a situation where I think volatility will substantially increase, I’ll mostly be collecting premiums. I’ve been learning a lot from the videos on tastytrade too. I really like the thinkorswim platform as well as the new dough options trading interface.

    I’ve only done a few defined risk options trades so far. My Citigroup vertical expired OTM, but my Amazon vertical wasn’t so fortunate (accounting for the YTD loss in options above). I should have managed the Amazon trade a little better. I could have likely rolled it for scratch or maybe less of a loss.

    I really think options can become a large part of my annual income and supplement additional investment in dividend growth stocks. Thanks for commenting!

  3. Brent @ AAI says:

    That’s awesome that you’ve already beaten your total dividend income from last year. I also look forward to seeing your options trades. Keep up the good work!

    • scott says:

      Thanks, Brent. It will be exciting when the options income finally surpasses the dividend income! I’ll have to think about an updated strategy, but it will likely be one of moving profits from options into long-term dividend paying stocks. We’ll see how I feel when the options income actually starts amounting to something.

  4. DivHut says:

    That’s a pretty nice dividend income for the month considering it’s coming from only 3 companies and as you mention it’s a huge improvement from same time last year. Keep it up. Look forward to reading about your progress.
    DivHut recently posted…Dividend Aristocrats You Never Heard OfMy Profile

    • scott says:

      Thanks for stopping by, DivHut. Yeah, it’s been fun to watch the monthly dividends keep increasing. June should turn out to be a great month as well! I’ll have to get some good ideas fro your recent Dividend Aristocrats post when I have some more time (and money!). Take care!

  5. Scott,

    I just stumbled upon your website and I really like it. Great start with your portfolio! Keep loading up on KMI and don’t forget PM and big MO. That snowball is really starting to move.

    MDP

    • scott says:

      Thanks, MDP! I’ll definitely have to keep buying more of KMI. I’d also like to get into DE; the world population keeps growing and the need to produce more food using DE equipment can only go up in the future.

      PM and MO would make great investments. The Conservative Income Investor says that a $10,000 investment in the old PM in 1970 would be worth (when combining all the companies that broke away) about $35 million today. Not much can beat that! Two great articles on this topic are here:
      If You Find Tobacco Stocks Unethical, You Should Buy Tobacco Stocks
      The Ethics of Tobacco Investing Revisited

      However, despite it being a great investment, being a doctor, I just can’t see myself pulling the trigger in anything tobacco related. Investments in KO and MCD are completely different IMHO because I can go and eat a Big Mac or drink a Coke (or eat/drink any of the “more healthy” options) and not have any negative health consequences. With exercise and healthy eating anything that KO or MCD offers is okay in moderation. On the other hand, cigarette or chewing tobacco is never good even in moderation. I’ve looked at too many chest CTs and x-rays with lung cancer to want to profit that way. The Conservative Income Investor does make a great point that the profits are coming regardless so you might as well take some of that and, if you want, invest it into efforts to reduce smoking. Just a different way to look at it, I guess.

      Thanks for checking out the site. We hope to have a bunch more updates soon.

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