Throughout these updates we will go over the previous month’s dividend income, as well as our rolling 12 month projected dividend income and our progress towards our goal of having $50,000 in annual passive income. (More on our goals and the tax advantages of Canadian dividends in future posts). For reference, I received my first ever dividend payment in December 2017, and I immediately realized that they needed to be a prominent part of our any investment strategy.
If you’re interested in seeing January’s post click here.
Welcome all to the February 2020 edition of our passive income update!
Fun fact – It has now been 27 months since we began investing, that’s 27 months of slow and steady growth to both our overall account size as well as our passive income!
It’s sure sobering to think that even though these numbers feel like they’re moving slowly to us, these changes really have been extraordinary when looking at the overall 27 month term.
Now, lets get to those February numbers:
This is a bit of a (expected) letdown after the nearly $1,000 we were able to receive in January. We obviously know how our income breaks down from month to month and usually have a good idea which months will be better than others but it can still be a little tough to swallow once you’ve mentally acclimated yourself to better months.
On the bright side – March is one of our stronger months of the year so that should help remedy the February funk.
Let’s have a look at how February 2020 compared to February 2019 in our YoY table:
105% increase! so it’s not all cloudy in February after all as doubling last years return is nothing to scoff at.
This passive income would pay for our cell phone bills and our cable/internet bill for the month, so even on a slower month we’re still seeing the potential to pay our bills from this passive income.
Considering we plan to be mortgage payment free in retirement every little bill that this fund can pay for seems like a huge step.
Now we’ll have a look at our rolling 12 month dividend income projections:
$8,776.76 is a $750 improvement over January’s update.
Still moving forward despite the market taking a bit of a break recently. This is a reminder why we invest the way we do, even when the market is losing double digit percentages in a week our progress towards our goals is still ongoing.
We’re hopeful that this market pullback is going to go on for quite some time, ideally long enough for us to receive our tax returns and yearly bonuses and allow us to really dollar cost average.
Heck, I wouldn’t even mind it if 2020 was an entirely down year. Crazy to think of someone wanting a down market but when we’re trying to accumulate these shares for the long haul, the longer buying opportunities we get the better off we’ll be in the long term.
We’d like to know how our readers are feeling about the markets volatility of late? Are we excited at the buying opportunity? Nervous about what the future holds? Let us know either below or over on our Instagram @FindependenceCanada
We look forward to hearing from you and will be sure to get back to you.
Thanks for stopping by for another edition of our passive income reports,
FIC.