It’s time to report my passive income for the month of September. The time really flies by as it looks like I reported my August income just recently. It’s nice to reflect on what happened during the month so I can’t wait to write this monthly post.
Let’s see which companies paid dividends to me during September (the amount is after taxes of 30%):
Not a huge amount to say the least but I will take it nevertheless. And it keeps coming in so I am happy to have these quality companies in my portfolio. E.g. when I purchased shares of Exxon Mobil a couple of years ago, I thought that it was undervalued and was hoping for the oil market to jump back up together with XOM. Unfortunately, it didn’t, and the difference from cost basis and current market value is -$10,30 (the “loss” was actually bigger a month ago). However, I already received $33 in dividends from XOM so it’s still profitable in the end and I am not planning to sell it as long as it keeps delivering cash every 3 months. That’s the power of dividend investing – you don’t need to worry about the market value that much.
Realty Income is another example of a great dividend paying company. What I love the most about it is that they pay dividends monthly. They paid dividends for 566 consecutive months already! It’s also an example of how you may invest to real estate in some way without having loads of cash which is usually a barrier to enter this market.
Year on Year Comparison
Let’s compare September dividend income with previous year:
Again, not an exciting month and not much changed since previous year. Even though the changes are little, they are going to the right direction and it feels good to be a bit better off than I was this time last year. All the growth was organic (dividend raises) since I didn’t purchase any new stocks that pay during September. October is going to be a different story, though, as I will be getting dividends from a new company for the first time (recent purchase of CSCO here). It will be interesting to see what difference it will make.
I also like to compare my dividend growth rate with annual inflation. If I was living off dividends one day, it would show if the growth would keep up with living costs. The latest available data (August 2017) shows that inflation again reached it’s multi-year high of 4,4% so the dividend growth would not offset that. A good thing is that this does not look ordinary and the full annual inflation for 2017 in Lithuania is forecasted to reach 1.6%.
This month one of my companies raised their dividends. Realty Income (O) raised their monthly dividend from $0.2115 to $0.212 per share (Press Release here). The new monthly dividend represents an annualized dividend amount of $2.544 per share as compared to the current annualized dividend amount of $2.538 per share. That’s a very tiny increase. Since I own 16 shares of Realty Income, it will raise my annual income from this company by whopping $0.067 after taxes 😀 It sounds funny but Realty Income tends to raise their dividends by a tiny bit every quarter so it all adds up in the long run.
Other Passive Income
I received 4,37 EUR in interest from P2P lending this month. My current active loans balance stands at 318,93 EUR so it’s slightly less than 10% of my current stock portfolio. I might add small amount to it or just reinvest returned interest this month. This month several loans were late a few days and it didn’t feel well. However, all of them were still paid and the riskiest ones are insured (I would get back the investment and 10% annual interest if the loan is late for 90 days). Still, this is a risky investment and I will keep it to a fraction of my main passive income sources. On the other hand, it’s really profitable so I am glad that I found this platform earlier this year.
In total (after converting to EUR) I received 9,56 EUR in passive income during September. This brings the total amount for 2017 to 69,31 EUR up to date which is not that far away from my goal of 100EUR. It looks like I will be able to achieve this goal by the end of the year if nothing unexpected happens.
How was your September? Did you reach any milestones? Are you sharing above companies? As always, please don’t hesitate to leave your comments below!