How to Track Passive Income - SPREADSHEET (Dividend Income)

hey what's up guys andre jake here and in today's video we're gonna learn how to track our passive income with a spreadsheet so we can be the HBIC the head boss in charge without coming down alright guys so we track everything we track how many miles we were on how many calories we need how many likes we get in each video but for some reason we never track our money where it goes how we spend it so I decided to make a video on how to track our passive income specifically my dividend income that I've been investing with Robin Hood as well as we Bowl thank you guys so much for all the free stocks I've been tracking that as well and I have made a spreadsheet that I've gotta had forever and I want to share that with you guys and show you I'm gonna buy a stock and then I'm gonna show you how show you it's like share and show you all at once i'ma show you i'ma show you how to do this and I do this every time I buy a stock just to keep track of everything to keep track of progress because growth is important to staying the course and I think this is important for everyone to know how to do and see so with that said let's dive right in so the stock in question is leg they don't sell legs or anything that would be kind of interesting maybe like prosthetic legs not at all what they do it's a very boring company which boring is good boring is what you want to look for and the company in question is Leggett and Platt now if they've been around since 1883 which is forever I know because I googled them and they primarily make parts for houses and cars now they specialize in quite a bit of steel production in industrial household and specialized products two-thirds of the products that they sell to customers are replacements for old existing products so you guys can tell that innovation and being new and edgy isn't really part of their business models so that's a big sigh of relief in contrast to say something like Apple or Tesla where they have to innovate and they have to push it forward chances are if you guys are watching this video on your bed or in your car this company had something to do with building the products or building parts for those products anyway I purchased 16 shares of leg at $39 and 89 cents for a total of 6 thirty eight dollars and twenty four cents which is pretty substantial considering that that money that I used to buy that stock with was money that I got from last month's dividends and that's really cool to see the dividend snowball go into such effect that that's enough to initiate an entire positions five years ago this company was priced closer to $50 per share which wasn't necessarily a good time to buy it but now five years later this company has finally gotten on my radar because it's a solid company it's been growing its dividend for a long time with an uninterrupted streak and now is a good time so just to show you even if you know my entire stock portfolio and again I've made that available on my patreon for you guys to see I don't want you to necessarily copy my portfolio out right and then you know say to yourself well Andre I have $10,000 should I just invest equally into exactly what your portfolio is and the answer is no not exactly and that's because the companies that I bought I bought over five years seeing which companies dipped and then buying them and then slowly holding them and then when they dip I'll buy a little bit at a time so this is a good example this is a great company but finally it's an attractive price and that's when you want to buy these so you don't necessarily want to copy everything that I do from the past if that makes sense okay so now let's go to one of my favorite resources to look up information and that is dividend dot-com so I'm gonna type that in and go to dividend comm let that load okay so now we're gonna type in the stock in question which is le gee look that up and let's see okay so now it has all of the data that we want to take a look at so if we scroll down you'll see the dividend yield which is currently at three point nine seven percent that is super solid and that's what I try to aim for I don't want to go higher that much I mean sometimes I'll buy a little bit higher but I see comments on my youtube channel all the time like oh you idiot that's only four percent that's like nothing I made twenty percent on last night no that's not how this works guys if you want to be consistent and if you want your income to grow without being at a huge risk of having that dividend cut you want to look at some other numbers - so annualized payout it says a dollar sixty so that is paid quarterly which means you could divide that by four and that is 40 cents so for each stock that you own you're gonna get paid 40 cents four times throughout the year to equal a dollar sixty and of course we have the payout ratio which is sixty one percent which is solid you want to be sixty percent or below but sixty one percent is right about there and then the dividend growth has been forty seven years which is like mind-boggling for a stock to be yielding right now four percent and for it to be growing for consecutive forty seven years without a dividend cut is massive guys a dividend yield already a four percent I mean you don't need that much growth so a single like mid digit growth rate like five percent per year is super solid and just to give you guys some numbers I'll throw some numbers at you so for the last year the dividend grew six percent in the last five years it grew five percent and in the last twenty years it has grown eight percent which is incredible numbers so there are of course some risks involved as with anything but the fundamentals look pretty solid so that's why I think it's it's a good buy right now so now let's plug in those numbers into the spreadsheet so go ahead and open up your favorite spreadsheet my favorite spreadsheet is my own because I'm biased but you guys can find it on my patreon page where I've made it available as well as my entire portfolio and I've structured this and you guys can set this up yourself it's not too difficult it's just kind of a pain in the butt to start because there's a lot but if you guys are gonna make your own I would suggest to make it something similar to this so on the left hand side you guys can see this is that all the company names and I've arranged it alphabetically so I can see everything and the next thing I have are the shares amount that's another thing we need to know when we're plugging it in I'll show you just a second this is the buy price on my next column so for example for Ellie G I bought it at $39 and 89 cents so this gives me all of the numbers where I bought the stock at and then the market price which is the column next to it is what the current share price is so for example if we look at say Apple I initially bought 32 shares of Apple at 100 $14 per share and now each share costs 200 9.68 cents so moving on the cost basis is how much it took to buy my entire position so I spent three thousand six hundred forty eight dollars on Apple and in today's value the market value which is the next column is six thousand seven hundred nine and that's how I know the difference and speaking of the difference the next column then shows the gain or the loss so in this case for Apple my gain has been three thousand dollars and 61 cents which is a growth in the next column for 83 almost eighty four percent which is nuts kind of makes you wish like I put all of my money on Apple yeah but don't do that because you never know what's gonna happen and again these are not every one of my stocks has been a winner but when diversified and when looked at over a long period of time it's done really really well but I have losers in my portfolio too that I've kind of never sold and I I think there are maybe some stocks that I can find better opportunities for but having said that the next column is my annual dividend which is three dollars and eight cents which the next one has the dividend yield which is the percentage right and then the next one is the yield on cost so after you buy a share after it's grown the yield of it goes up even though the initial yield isn't what you bought it at but over time it has grown and it reflects that this number is not something you want to pay attention to much too because it can fluctuate now the next one is the most important one I think and that's my annual income so all of these columns aggregate on the bottom and show you guys exactly the cost basis then the market value and then the overall gain and the loss and then the dividend yield on average which you can see is 4% and the yield on cost is four and a half percent with an annual income total of 6,800 one dollars and that just tells me that year-over-year that's about how much I'm going to get paid and that's how I know like monthly approximately what I'm yeah and some months are bigger than others if you guys have noticed like my June income has been like $800 some of my other months have been like three or four hundred dollars and that's just how it goes but the total will be roughly seven thousand dollars so having said that the stock that we bought is leg right so I'm going to go to where is where I'm gonna put leg and that is about below LC Lending Club one of my worst purchases I think as this is one of those things where I was like oh I have $100 left in my in my Robin Hood account what do i buy oh people have talked about Lending Club let me buy some shares so I bought Lending Club and then it just performed really poorly and actually for whatever reason it's not as bad as I thought but I've been down like 50 percent on this stock and I've just never sold it and now I guess it's come back up cool so anyway legs so now we click on this and by the way on my patreon page I have both this guy for Apple iOS because there are Mac users and I also have a excel version for all of you PC users I have that available there too but I just love the Apple numbers app so go ahead and click on this little icon right here you'll see a little drop down menu and we can add row' below so go ahead and add the row below and all you need to do is you just need to know this ticker symbol so that is Ellie G now once you enter that go ahead hit tab and it'll populate all of it automatically at this point you just enter in the amount of shares that you bought so in this case I bought 16 shares great okay and the buy price is $39 and 89 cents and that's it and that's really all there is the rest is populated completely that adds twenty five dollars and sixty cents to my annual income and since we looked at did dividend com website you guys saw that it paid quarterly so I would then divide that twenty-five dollars and sixty cents by four and that's how much it's gonna pay me every three months it's super simple and again I've done this for all of these stocks guys that I've just kept track for forever and also if you go to the next tab you'll see that dividends and if we scroll below you guys can also see all of these bar graphs which are colored which show me year-over-year exactly the comparison and you can see this trend line going forward it's slow but it's growing up and that at least gives me a peace of mind that like yes these things are growing and seeing this progress really helps me stay the course and when the stock market collapses and it will don't know when but it will and when it does to me it doesn't matter because I'm still kind of in the green I'm still gonna get paid on a monthly basis I'm still gonna reinvest that income back into all of these high-quality companies which inevitably after a year or two or five or ten whatever it is they'll come roaring back up and more so than they've ever been and that's kind of the fun of all of it and also I have a second tab right here which is you know years 2019 to 2022 and you guys can see these little blue bars that I'm gonna be comparing against for the next year so that's that's really cool to me like I have a lot of fun with this pretty simple stuff right guys I promise if you do this this will change your life and for whatever reason this gets me so excited every time I do this dividend stuff because when I buy a stock I'm like yes I can't wait to put it back in and plug it in and see all the data and compare and see all the visual graphs it makes me feel like I'm making progress and it gives me the three reasons right it gives me the what which is my financial freedom it gives me the Y which is I don't want to have to work a job that I hate for the rest of my life to pay for my bills and I have the how which are these dividend trackers and all of this progress that I can see in real time right in front of me and it just keeps me sane and keeps me pushing forward and consistent so that's it let me know in the comments below what you guys thought smash the like button subscribe and I'll see you guys very soon love you [Music]

Channel: Andrei Jikh

Views: 324,968

Keywords: dividend income, how to track, dividends, dividend stocks, passive income, income, spreadsheet, stock spreadsheet, income spreadsheet, tracking money, robinhood app, webull, webull investing, tracking app, financial spreadsheet, stocks app

Id: LCVw5CA1vIA

Length: 12min 44sec (764 seconds)

Published: Fri Aug 02 2019