June 2019 Summary

Summer is in full swing and June was another great month. Our baby-girl is growing well. It seems that she is changing and learning new things everyday. She even has 4 teeth already! We also had a short 4-day getaway to the seaside this month. It was great to spend some time with old friends and read some books on a terrace. It feels good to know that our portfolio was working behind the scenes while we were having a great time πŸ™‚ Let’s dig in to the numbers!

Dividend Income

This month I received dividends from 6 great companies:

$77 is not too shabby, especially for my portfolio. It’s the last month where I receive dividends from a company which pays dividends once a year (Uniqa this time), so I will not enjoy such big months going forward.

As always, let’s see what part of expenses, related to the companies, the dividends could cover if I decided to spend them:

  • €38.42 from Uniqa Insurance Group would cover 51% of our compulsory annual car insurance. We don’t pay any other insurances in our family and our car does not require an expensive insurance, so it’s pretty good;
  • $6.80 from Pfizer would cover 74% of our healthcare related expenses for the last 3 months;
  • $2.54 from Realty Income would cover 0.4% of our monthly Rent;
  • $8.16 from Target would cover 0.7% of what we spent on Food during the last 3 months;
  • $7.39 from Exxon Mobil would cover 0.9% of our Car & Transportation expenses for the last 3 months. This time we spent quite a lot on car, as it had some maintenance done and there were a lot of long trips during the last few months. Expenses in this category should be much smaller for the remainder of the year;
  • $8.41 from BlackRock would cover 45% of our expenses in Banking category 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.

Year-on-Year Comparison

Let’s compare dividend income to June of last year:

That’s what I’m talking about! I received almost 12 times more than last year! Let’s see what caused this kind of increase:

  • Biggest part of increase was influenced by recent purchase of UQA which pays dividend once a year. I actually expected even more from them but I forgot about the taxes. It turns out that I need to pay 27.5% withholding tax for dividends from Austrian companies. I was warned about this when I spoke with a representative from my broker, so I can only blame myself for this;
  • Three new payers (PFE, TGT & BLK) that I purchased during the last 12 months;
  • XOM increased their dividend and I added to this position when I moved them to my new broker where I need to pay less taxes on dividends;
  • Small dividend increase from O also contributed to the growth slightly.

All in all, I am very happy with the increase. It looks like saving and investing part of our income constantly is finally starting to pay off.

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 €800 to my investments account.

I used this amount and some previous savings to add a new stock to my portfolio. On the 5th of June I purchased 8 shares of 3M (MMM) at $165/share for a total of $1327 (including commissions). You may read more about this purchase here. This adds $39.16 to my forward annual dividend income (after taxes).

I also added €50 to Mintos P2P lending account.

Dividend Increases

After empty May, I received two dividend increase announcements during June:

Above dividend increases are quite small but every little bit counts. I am grateful to see that my passive income grows without me needing to do anything.

Changes in Projected Annual Dividend Income

As I mentioned in previous posts, I have a goal to increase my PADI to $450 from US companies this year. At the start of the year it was standing at $236. This means that I should add additional $214 (or $18/month in average) if I want to achieve the target.

To track the progress, I monitor PADI increase/decrease from two sources – dividend increases and capital contribution.

Let’s see how forward dividend income changed during June:

June was the best month this year so far for added PADI. I am on track to achieve the goal if I continue at this rate.

P2P Lending Income

Let’s see how much passive income I received from another source – P2P lending:

In total, I received €8.4 in interest from P2P lending this month. Current loans portfolio stands at €907.62.

The income from Mintos is slowly growing, as I add tiny amounts to this platform each month. I also received a small “Campaign reward” of €0.56, as I used a referral link when signing up for an account with Mintos. I would have gotten more if I invested more but I would like to keep my main focus on dividend-paying companies instead of P2P lending. If you would like to sign up with Mintos and receive some cashback as well, feel free to use my referral link (I would also get a small commission).

Summary

In total (after converting to EUR) I received €76.06 during June.Β This brings the total for 2019 so far to €316.34 which is 66% of my goal to receive €480 from passive income this year. The big months are over but I am well ahead of the target at the moment, so I should be able to reach the goal easily. Perhaps I should even increase the goal – I will give it some thought.

 

How was your month? Are you sharing any payers with me? Are you on track to reach your goals this year? Please don’t hesitate a leave a comment and thanks for reading! πŸ™‚

22 thoughts on “June 2019 Summary

  1. Hey,
    what loan originators you use in Mintos? You choose loans with or without buyback guarantee?
    In savy you invest with investors fund to avoid defaults?

    1. In Mintos, I invest to A or B+ loan originators with buyback guarantee.
      In Savy, I invest to A-graded loans without investors fund, lower graded loans are with investors fund.
      Thanks for the comment! What are your choices?

      1. Currently I choose only one loan originator – EBV finance which provides buyback guarantee.
        You choose loan originators only by grade or by other criteria (country, currency etc.?).
        In savy I invest into loans with investors fund, which is black box as there is no info about its size and how it changes. But psychologically it feels safer πŸ™‚

        1. In Mintos, I only invest to loans in EUR and have some additional criteria (don’t invest in pawnbroking loans etc.).
          Yeah, it kinda sucks that you don’t know the size of the investors fund in Savy. It is definitely a risky investment, so I am only using less than 10% of my portfolio for P2P lending πŸ™‚

  2. Hey,

    I am from Lithuania and I want to start investing like you. Unfortunately I can spend only about 100 eur per mouth to buy stocks. So could you help me and share ideas from where/whom buy stocks/ETF and so on.

    1. Hey Karl,
      Thanks for visiting and it’s nice to see that you are thinking about starting investing. I am not a registered advisor, so I cannot give you advice but I can share my experience πŸ™‚
      For small investments I am using ETFMatic.com (I am investing €50 for our baby-girl each month there). If you are interested, I can send you an invitation (you and me would get a free month of fees). I think it’s quite a good platform for small investments, as there are no purchase fees, only ~0.5% management fee. The drawback is that you cannot choose where to invest (only specify amount for stocks/bonds ratio).
      By the way, if you don’t mind asking, how old are you? πŸ™‚

      1. I started ETFMatic.com using 2 mouth ago. One year ago I started invest in p2p platforms. From Finbee.lt
        interests are 11 % per year, 9 mounts ago I started use paskoluklubas.lt and I think theirs interests will be about 12%. Last mouth I opened an account in Mintos. I also tried/played with forex, but this is not for me.
        As you see my investing are very risky so I’m searching other options.
        I’m 29, living in Vilnius working in Life science/science sector. I think I will start blog also about my investing experience.

        p.s. Did you try brokers for ETF witch mentioned https://balticmustache.lt/geriausias-brokeris-investavimui-i-etf-lietuvoje-2019/

        1. Thanks for sharing!
          I read the article of BalticMustache, they did great overview of available options. Interactive Brokers (via Myriad Capital) is suitable for me at the moment, so I am not planning any changes soon. I like to invest to individual companies (compared to ETFs) to have more control and it is more interesting to me πŸ™‚
          Let me know if you start your own blog. It’s always interesting to read about experience of other investors, especially in Lithuania! πŸ™‚

          1. It says that there is this inactivity fee but actually I was never charged with it. It’s kinda unofficial but the fee does not apply to Myriad Capital customers and I hope that it will stay this way for some time πŸ™‚

  3. Hey BI,
    Great job in June. I can’t remember seing a growth rate above 1000%..ever:)
    I also hear you in reragds of withholding tax for dividends. Actually it’s a shame that we still have these conditions in Europe. Investing into stocks is the best option for retirement planning..especially for us small investors. It should be supported and not hindered.
    But hey we keep on doing what we do. That is investing small amounts regularly. Your June report proofs that it works quite well.
    Keep it up!
    -SF

    1. Thanks a lot for the kind words SF!
      Well, it’s easier to achieve growth rate of 1000% when the base level is less than $7 πŸ˜€ But it may be that this is the last time when I see such numbers πŸ™‚
      Withholding taxes suck, at least they are not that big in all European countries πŸ™‚

    1. Thanks DP!
      It would be great to receive €100 in a single month. €100 was actually an annual goal for me in 2017!
      I will need to wait for it at least until next year but it definitely looks possible now πŸ™‚

  4. Impressive month BI, keep the snowball rolling!

    We shared a few dividend payers and both of those dividend increases. Even though these raises are small, they are constant which is far more important to me!

    1. Thanks Deluge! I agree that the consistency of those raises is very important. Most of the companies in our portfolios are known for their history of consistent dividend raises and that’s what DGI is all about πŸ™‚

  5. Amazing YoY growth, BI. I’d like to get one of those. πŸ˜€
    Love seeing all those new dividend payers. You were very busy buying in the past year. Those 800 Euro deposits are helping out immensely. Keep it going.
    Only one insurance? No homeowners/renters or life insurance? Maybe those are planned for the future?
    Nice work in June.

    1. Haha, it would be quite hard to reach this kind of growth rate with your huge dividend amounts πŸ˜€
      Those 800eur deposits may end shortly for some personal reasons but I am doing my best to invest when I can.
      Yes, we only have one insurance at the moment. I think we will add home and life insurances when we buy a home and get some liabilities.
      Thanks for stopping by and commenting, it is appreciated! πŸ™‚

  6. Damn BI, you are absolutely killing it with your results! I also love your overview from P2P lending. Its something I haven’t dipped my toes in but am willing to try. I think Mintos is one of the larger ones around.

    Maybe I should sell my crypto’s and put them to work there. Something for me to think about!

    1. Thanks a lot Mr. Robot!
      To be honest, I am now having some doubts about P2P lending, especially Savy. They recently sent information about their β€œProvision fund” which only has €25k which is almost nothing if the economy turns south… Anyway, it’s just a small amount of my portfolio, so probably I will stay in it but am planning about moving some funds to Mintos instead.

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