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. 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 May’s post click here.
First things first. HAPPY BELATED CANADA DAY!
That’s right, July 1st has already come and gone. This also signals that half of the calendar year is behind us which seems crazy but I guess time flies when you’re in a pandemic.
Having our baby boy at the start of April also seems to have sped things up, it feels like every day he’s learning something new and changing before our eyes.
So, to the matter at hand – our passive income report for the month of June.
June was a great month although an ever so slight disappointment. I truly thought when we hit $997 in passive income for January that June was going to be our opportunity to finally breach that $1,000 month but it was not meant to be.
If we had really wanted to hit $1,000 bad enough we could have, we do still have money sitting on the sidelines that we could have thrown into the market or we could have chased stocks with higher yields and hoped that they’d held up but we’ve really worked hard to be patient with our investing during this market and focus on truly grade A dividend payers to up the overall quality of our portfolio’s while potentially losing out on a little bit of yield – at least short term yield. We do believe that long term these dividend growers will outpace their higher yielding counterparts.
So let’s get into the numbers shall we?
$933.91 marks our 2nd best month ever! it’s crazy to think that we’re now in a position where a month like this can pay for phones, cable, internet, car insurance, utilities all just from our dividends received.
There’s also a clue in this income report that reminds us of why we’re staying bullish on quality dividend payers even as the markets rise and that’s the near non-existent amount of interest we’re now receiving on our savings.
We need to look at the bigger picture and remind ourselves that there are a lot of retirees out there especially that require steady yield to live off of and if your high interest savings accounts, bonds etc. aren’t producing that yield they’re going to have to go elsewhere to compensate – likely into the dividend stock pool. This at least in our minds rationalizes being able to invest during uncertainty as these stocks are likely going to be in higher demand than usual until interest rates turn around.
Let’s have a look at our YoY numbers:
In terms of percentage, a 32% uptick from last years June isn’t anything to write home about but the actual dollar growth of $127 is still quite strong and we’ll take that every time especially in a market where we have received some pain in the form of dividend cuts.
As we make note of in most of these updates linear growth just isn’t realistic over the long haul without increasing the capital being put into these accounts substantially so this curve will flatten out over time but that’s okay.
Our $4,157 received this year so far is already closing in on 2019’s total and ideally by the end of August we’ll be able to surpass 2019 leaving September, October, November, December to pad our new record year.
Now for the projection of the next 12 months:
This marks another month where our rolling projection has decreased but this should be the last one. We’ve been doing an overhaul on our portfolios that is about complete at this point so barring any large dividend cuts we’re ready to build from here, onwards and upwards.
We received 27 dividend payouts for June across all of our accounts, some are multiples from the same company if we hold them in multiple places but still that number is huge and is exactly why we do this type of investing. Here are those payouts:
That’s a wrap for this months update.
Remember that we are just documenting our investing journey and sharing our triumphs and mistakes along the way, this isn’t any form of advice or recommendations so please consult a professional before investing your money!
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Thanks for stopping by,
FIC.