It’s already the middle of February and I haven’t reported my passive income for January yet. It’s getting harder to find time to blog these days, so I am a little late to write this post. However, I would never miss it, as looking back at what my portfolio did during last month is a satisfying thing to do.
Without further ado, let’s see what January brought.
This month 5 companies paid dividend to me:
That’s not too bad for the first month of the quarter, which is one of the slower months in terms of dividend income. It seems that the sub-$30 months are already in the past. Last year, I was happy that sub-$10 months were a history, so it’s nice to reach another small milestone.
As always, let’s see what part of expenses of different categories in my budget the dividends could cover if I decided to spend them:
- $11.22 from Eastman Chemical would cover 4.3% of our expenses on Clothes in the last 3 months;
- $2.86 from Altria Group could pay for 70.5% of what I spent on Alcohol in the last 3 months;
- $7.28 from Illinois Tool Work would cover 14% of our expenses in Home category;
- $3.09 from Realty Income would cover 0.5% of our monthly Rent;
- Finally, $9.22 from Cisco Systems would cover 11% of our TV + Internet subscription for the last 3 months.
There is long way to go for dividends to cover significant amount of our monthly expenses but performing this fun exercise gives me motivation to keep going.
Let’s see how dividend income compares to January of last year:
I was not able to double the dividend income compared to last year but 87% growth is not too bad. The biggest contributor to the change was the new position of Eastman Chemical acquired last year.
This is how my dividend income progress looks like since the beginning of 2016 when I started tracking it:
Purchases and Portfolio Contributions
This month I added €500 to my investment account.
I used this and previous savings to add a new company to my portfolio. On the 29th of January, I bought 8 shares of The Walt Disney Company (DIS) for $136.55/share for a total of $1099 (including commissions).
This purchase adds $11.97 to my forward annual dividend income. You may read more about the purchase here.
During January, a couple of companies declared dividend increases:
Realty Income declared their regular dividend increase of January of ~2%, so nothing new here. I am pretty happy for a heftier increase from BlackRock, though.
With the average dividend yield of my portfolio, I would need to invest ~$133 to reach this amount. It clearly shows the power of dividend increases.
Changes in Projected Annual Dividend Income
I am continuing the tradition from last year to track changes in Projected Annual Dividend Income. It is coming from two sources – Dividend raises/cuts and new investments.
Let’s see how forward dividend income changed during January:
For comparison, I am also adding the table from previous year:
I am lagging behind compared to last year, as my purchase this January was of a low-yielding company. However, there is an increase in the Dividend Raises category. I expect this trend to continue during the year, as my portfolio gets bigger and it should experience more dividend raises.
P2P Lending Income
This is how my income from P2P lending looked like in January:
Interest from P2P lending added €9.28 to passive income this month.
My P2P lending portfolio currently stands at 4.5% of my overall portfolio. I would like to keep it at around 5%, so I may add some funds to it to keep up with stocks portfolio.
If you would like to sign up with Mintos and receive some cashback, feel free to use my referral link (I would also get a small commission).
In total (after converting to EUR), I received €40.37 from passive income during January. I have an ambitious goal to reach €1000 throughout 2020. Slow start of the year means that I am behind the target – at 4% with 8% of the year behind us. I will have some bigger months in Spring but it will be hard to reach the target.
How was your month! Have you beaten any records? Are you sharing any dividend payers with me? Don’t hesitate to leave your comments and thanks for reading!