We’re already approaching the end of June, and I am only now getting around to sharing my May passive income update.
May was another great month for us. My wife and I celebrated our birthdays, I completed my first triathlon of the year, and the month was full of activities.
At the same time, the portfolio continued moving forward. May brought the highest passive income result of the year so far, and, perhaps even more importantly, the portfolio crossed the €20k milestone for the first time.
Let’s look at the numbers.
Dividend Income
During May, 6 companies paid dividends to my portfolio.:
Since a couple of these companies pay dividends only once per month, the second month of the quarter turned out to be unusually strong.
As always, let’s compare each dividend with a real household expense to see what part of our lifestyle the portfolio already supports:
- $6.43 – Bristol-Myers Squibb (BMY): Covers 0.9% of our Health expenses over the past 2 months.
- €2.30 – ASML (AMS: ASML): Covers 1.8% of our Other expenses category.
- $8.98 – Procter & Gamble (PG): Covers 2.5% of our Cosmetics & Hygiene expenses over the last 3 months.
- €11.73 – Vilkyskiu Pienine (VLP1L): Covers 1.1% of our Food expenses over the last 2 months.
- €42.84 – Telia Lietuva (TEL1L): Covers 9.2% (or slightly more than a monthly bill) of our yearly expenses on TV & Internet. It feels good to receive dividends from the same company you are paying for the services.
- $5.27 – Starbucks (SBUX): Covers 0.6% of our Eating Out expenses over the last 3 months.
The percentages are still small, which is completely expected at this stage. For now, it is partly a game and a way to stay motivated – but over time, I expect dividends to cover a much larger share of our family’s expenses.
Dividend Year-on-Year Comparison
Let’s compare the dividends received in May with the same month last year.
The result is very encouraging – dividend income more than doubled year over year.
The main reasons for the increase are:
- New positions in ASML, Procter & Gamble and Vilkyskiu Pienine
- Increased position and higher dividends from Telia Lietuva
- Dividend increases from Bristol-Myers Squibb & Starbucks
Other Passive Income Sources
Besides dividends, the portfolio also generated income from other investments:
- €6.51 – P2P lending
- €6.18 – Bond interest
- €4.45 – Money Market Funds
- €0.91 – Rental Income Crowdfunding
These smaller income streams continue to add up and provide additional diversification beyond dividends.
Passive Income Summary
In total, the portfolio generated €92.89 of passive income in May:
This is the highest monthly passive income result I have achieved so far.
It will be difficult to beat this number in the near term because May included several large annual dividend payers. However, I see this as a good reminder that consistency and time are the biggest advantages in investing.
The chart below compares passive income across the years:
I always enjoy seeing the dark green columns getting higher as time goes by – each month represents another small step towards financial independence.
Portfolio Contributions and New Investments
During May, I added €600 to my investment accounts.
Together with previous savings, this allowed me to add a new position to the portfolio.
On May 22nd, I purchased 6 shares of Chevron (CVX) for a total investment of $1,143.20 (including commission).
This purchase completed my exposure across all GICS sectors — Energy was the final sector where I previously had no allocation.
Energy is not one of the sectors I want to overweight, so my target allocation remains around 3%. However, I still like having some exposure to the sector.
I chose Chevron for several reasons:
- It is one of the largest oil companies globally, with a strong balance sheet and a long operating history.
- Compared with some other oil majors, Chevron has had less historical exposure to russia.
- It currently offers an attractive dividend yield of around 4% and has increased its dividend for 38 consecutive years.
Of course, there are also risks:
- The dividend payout ratio is currently above 100%, which means dividend growth could become more challenging if profitability remains under pressure.
- Compared with some peers, Chevron has less diversification outside traditional hydrocarbons, meaning earnings remain more dependent on oil and gas prices.
This purchase increased my expected annual dividend income by approximately $35.60.
Summary
May was another important step forward in the journey towards financial independence.
The portfolio reached a new milestone, passive income hit a new record, and the compounding process continues.
My goal for 2026 is to generate €750 in passive income. After five months, I have achieved €322, or 43% of the annual goal.
I am slightly ahead of schedule, although the second half of the year will likely be more challenging because the large annual dividend payments are already behind me.
Still, with regular contributions and continued investing, I am confident that the goal is achievable.
Thanks for reading! 🙂