Today’s dividends: Target, IBM and 3M

There’s nothing better than getting paid while you sleep. Trust me … I’m a bit of an authority on the subject. I mean, I make about $0.07 an hour without doing a thing … and that number is only going up.

OK, OK … I know $0.07 isn’t much, but it’s certainly more than nothing, which is what most people make when they aren’t working. I’m not talking $0.07 an hour from 9-5 Monday through Friday. I’m talking $0.07 an hour, 24 hours a day, 365 days a year … automatically spit out by my portfolio.

I think my man Warren Buffett said it best:

If you don’t find a way to make money while you sleep, you will work until you die.

Such a short, simple sentence, but it carries some serious weight, right? Nobody wants to work forever. Fortunately, nobody has to. There are a million ways to make passive income. The one I picked was dividend-growth investing. You buy a dividend-paying stock with money you’d just blow on something you don’t really need. Then do it again … and again. Keep doing it and, when you earn the dividends, use those to buy more, too.

When I started investing a little more than a year ago, I didn’t have a single cent of passive income coming my way. Now, I’m on track to earn more than $600 annually and, well, that number goes up each and every time I buy more stocks.

Simple stuff on the surface. Picking the right stocks, coming up with a strategy, etc. … that’s a bit tougher. At the end of the day, though, you can’t go wrong if you’re building a passive income stream. Find what works for you and do it … or just read every one of my blog posts and do exactly what I do.

As for what I do, most of you probably already know I have a ton of dividend-paying stocks with different quarterly payout schedules. The way I constructed my portfolio ensures I earn somewhere between 40-50 dividends a month. Today’s came from IBM, Target and 3M.

Target

Target (TGT) was nice enough to add $3.72 to my Dividend Farm today. I’ve owned six shares pretty much since the beginning of my march. It was one of the first companies I bought as its dividend’s track record was and still is pretty damn impressive. Target’s been raising its payment for 46 straight years, most recently at a 12.45% average clip over the course of the last five.

International Business Machines

International Business Machines (IBM) passed along a solid $6 dividend for the five shares I own. I’ve built the position slowly, but three of the five shares were purchased this year.

You’d be surprised what steady additions and dividend raises can do for a quarterly payout. For example, IBM was paying me $1.40 a quarter for awhile. Then, the company boosted its quarterly payment by $0.10 to $1.50. A quarter later, I doubled my position and earned $3. Now, after adding another few shares, I’m at $6 every three months. Next quarter, considering my most recent singe-share purchase came after the ex-dividend date, I’ll get another $1.50. I already can’t wait for that $7.50 in June.

3M Company

I’m pretty sure I can’t say anything about 3M (MMM) that hasn’t already been said. It has a bulletproof balance sheet, earnings are good and it shows in the share price. I bought one share for $175.95 in December of 2016. As of this post, that share is worth about $240.

The dividend has been growing, too. My one share earned me a $1.11 dividend the first quarter I owned it. A quarter later it earned me $1.18 and, fast forward another three quarters and you have the current payment of $1.36. That’s a 15% raise.

This week’s steps

Today’s dividends – a combined $11.08 – bring my March total to $28.22 and my 2018 mark to $112.89.

Last week’s steps

I increased my forward annual income by $2 thanks to Monday’s purchase of CVS.Tuesday featured a dividend from Valero and Wednesday saw a $1.82 dividend from UPS hit my account. I also made a handful of purchases, scooping up shares of MDC, Procter & Gamble and Franklin Resources – which added $4.88 to my steadily growing forward annual dividend income total.

I made another couple purchases Thursday, adding shares of AT&T and Verizon to my Dividend Farm, and received $3.17 worth of dividend income from a combined four companies.

I also earned $1.13 worth of dividends from Exxon and Yum! Brands on Friday. In all, I earned $6.92 of complete-passive income and boosted my forward annual dividend income by $11.24. Not a bad stretch if I do say so myself.

March on!

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