January is over! It’s good to know that we only have one month of winter left and the days are already getting longer. Furthermore, it’s holiday time for me for two weeks and we will be spending some time in the Canary island of Tenerife to recharge our batteries in a nice weather. A good thing is that my portfolio is not taking holidays and keeps on working for me. Let’s see how it went during January.
Two companies of my portfolio paid dividends in January:
As usual, I received another monthly dividend from Realty Income (O). Stock price of O is not faring that well recently, though. It declined by ~13% from the beginning of 2017 to present day. When most of the U.S. stock market was climbing higher during 2017, the company took some beating due to a couple of factors. Firstly, the whole retail sector was not looking good recently. The rise of e-commerce has made it less important for stores to have physical presence. Since Realty Income has substantial exposure to retail real estate, it is seen as a negative thing for the future of the company. Rising interest rates in U.S. are also not favorable to performance of REIT so it was another factor that drove the price down. On the other hand, Realty Income still managed to grow their revenue by ~11% during the first 3 quarters of 2017 and is constantly increasing their dividend so I am not worried about the price. Quite the opposite, actually – a few fellow dividend investors are using the dip to buy shares of Realty Income (Bert’s from DividendDiplomats purchases here and here, DividendDaze’s purchase here), so it’s more as an opportunity for us. Realty Income account for ~17% of my stock portfolio and I am not planning to use this opportunity myself, though. Also, the bank that I am using for investment account no longer allows buying U.S. based REITs since beginning of this year but that’s another topic and I am planning to solve this problem in the future by changing brokers.
Cisco Systems is the opposite from the price point of view. I only purchased shares of CSCO in September and since my entrance the price of the stock jumped by ~28%. Some of that would be eaten due to weak dollar but I am not planning to sell it and convert it to EUR. I was lucky to get in just before the rally started. I am not sure if it has much more room to grow but the main reason why I bought the shares was their attractive dividend yield. I have now collected second dividend from them and am happy to have them in my portfolio.
Year on Year Comparison
Let’s see how it compares with January of last year:
That’s the kind of percentage increase I like to see! I wish the nominal values were also high… Still, the purchase of CSCO really improved my dividend income for the first month of the quarter. I will be able to enjoy the same kind of growth for two more months during the year. After that it will be much harder to achieve such growth in percentage points.
Realty Income raised their monthly dividend again from $0.2125 to $0.219 per share. Since I own 16 shares, it will increase my net annual income from Realty Income by ~$0,87($0.0065 * 16 * 12 – 30%). Every bit counts so I am happy to see yet another raise to my dividend income without moving a finger.
Purchases and Portfolio Contributions
This month I didn’t make any purchases but I managed to put aside €500 to my investment account. Once I have enough money to invest, I will look for possible targets. I’m afraid I will not be able to contribute much during February, as we will have a vacation and it will incur some additional expenses. I am not worried about that, though, as we should take some time off work and relax to stay sane 🙂
I also added additional €20 to my P2P lending account.
Other Passive Income
During January, I received €4.78 in interest from P2P lending. 3 out of 29 loans I was invested in are late to pay for January (€2.39 in total) but all of them are insured so I would receive the money back in case they are late for more than 90 days. I am seeing an increase of late loans recently and maybe that’s a worrying sign about our economy. Even with some of the loans being late, the profitability of P2P lending is quite high so I plan to stay in this field for some additional source of income. My current balance in this platform stands at €398.31 which is distributed among 29 active loans. I am aiming for it to account for ~10% of my portfolio so I might add a small amount to this platform during February.
In total, after converting to EUR, I received €11.74 during September. With this kind of rate I would not be able to reach my target of €240 from passive income during 2018 so I will need to step up my game in order to achieve it!
How was your month? Did you start the year strong? Are you sharing any of the companies of the above? Don’t hesitate to leave a comment and thanks for reading!