Passive Income Report – May 2022

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 April’s post click here.

Here we are, back again to recap another month of dividend earnings!

We’re a little late to the party as we’re now well into June and recapping our May’s passive income, but times have been busy around the household so it is what it is.

May was a great month for us overall, we welcomed our new baby boy to the world at the start of the month, I took some time away from work to focus on that and everyone is happy and healthy – no complaints!

Now, onto the topic of the post and that is dividend income.

May was yet another month that demonstrated why my wife and I love dividend investing. The stock market took another hit this past month but for us it was just another opportunity to accumulate more shares at lower prices to fund our future lifestyle. While our overall investment portfolio has dropped a fair amount that growing income stream remains in tact.

Now, let’s get into the numbers:

Dividends Received: $924.70

$924.70 received in a month that has traditionally been our worst month of the year is huge, we can attribute this to two things, first of which is our continued contributions to stocks like TD and RY that pay out in this period but also a big helping hand to our newer position in BTI (British American Tobacco) that we’ve built up over the last several months.

Our top 5 payers for May were as follows:

1) BTI
2) TD
3) RY
4) EMA
5) ABBV

Now let’s look at where that puts us for the year:

Dividends Received YoY: $5,474.97

As I mentioned above the 87% YoY growth can be attributed to continued contributions and also establishing a position in BTI. 87% is not a growth rate that I would have expected to hit in our 5th year working on this portfolio but there are certainly no complaints!

Assuming June is a good month as it should be, our yearly goal of $14,000 received will be hit (and then some).

Again, this goes to show why we invest the way that we do. We have lost capital appreciation in our portfolio but it’s so much easier to stomach for us since these are the numbers that our goals are reliant upon.

Now, onto the 12 month projections:

Dividend Projection: $18,603.04

As you can see our dividend portfolio now projects to pay us over $18,000 yearly – or $1,500 per month.

As this market downturns drags on people who follow a similar strategy to BTSX (Beating The TSX) will be locking in 5%+ yields on their current purchases so this number is ticking up at an accelerated clip. We have no real way of knowing if this will keep up for the remainder of the year but if it does this projection will continue to balloon along with it.

I’d be curious to know if any of our readers follow a strategy similar to BTSX? If you do be sure to let us know either down below or over on our social media pages:

TWITTER: @FindependenceC1
INSTAGRAM: @FindependenceCanada

Thanks for stopping by,

FIC.