September 2019 Passive Income Summary

The first month of autumn is in the books. It was another great month, even though there was more rain and the weather got colder. Our baby-daughter took her first steps and it’s amazing to see. She is also able to mimic a dog and a crow which gave us more joy than we could have imagined.

My portfolio also worked hard and delivered some passive income. I am starting to see the effect of the last month of the quarter, as the dividend income is getting bigger compared to other months. Let’s look at the numbers.

Dividend Income

This month I received dividend from 7 companies which is a personal record for my portfolio:

The dividend snowball is getting bigger and it’s more evident with September’s numbers.

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

  • $6.80 from Pfizer would cover 2% of our Health related expenses for the last 3 months. I had a lot of expenses last month due to some extensive health checks;
  • $8.41 from Target would cover 0.7% of what we spent on Food during the last 3 months;
  • $3.07 from Realty Income would cover 0.5% of our monthly rent;
  • $7.39 from Exxon Mobil could pay for 5% of our Car & Transportation expenses for the last 3 months;
  • $9.79 from 3M would cover 2.9% of what we spent on Baby related expenses during the last 3 months;
  • $11.70 from Dominion Energy would cover 4.7% of our Utilities bills for the last 3 months;
  • Finally, $8.41 from Blackrock could cover 41.9% of our expenses in Banking category.

The list is getting longer and I am almost running out of categories in our budget to assign to different stock names. I don’t mind having this problem, though 🙂

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 September of last year:

That’s what I’m talking about! There are 4 new companies in the list this year and this was the main factor of growth. Of course, I shouldn’t forget that the other 3 companies that paid this month all increased their dividend throughout the 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 the savings and dividend income to add a new stock to my portfolio. On the 3rd of September, I purchased 20 shares of Eastman Chemical (EMN) for $64.4/share for a total of $1295 (including commissions). You may read more about this buy here. This purchase adds $42.16 to my forward annual dividend income.

I haven’t added any funds to P2P lending platforms.

Dividend Increases

This month one company announced a dividend increase:

It’s a very tiny increase but Realty Income usually announces 5 dividend increases throughout the year, so I can’t complain.

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 raises/cuts and capital contribution.

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

I am happy to say that I already achieved the goal with 3 months to go. There is no need to rest, though, so let’s see how far we can go before the year ends!

P2P Lending Income

This is how my income from P2P lending looked like in September:

Interest from P2P lending added €9.38 to my passive income this month. It is very close to what I received last month (€9.32), as not much changed in this front.

In general, I would like to keep P2P lending portfolio at ~5% of my overall portfolio. Currently it stands at 4.9%.

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).

Summary

In total (after converting to euro), I received €59.99 in passive income during September. This brings the total for 2019 to €433.66 which is 90% of my goal to receive €480 from passive income this year. It seems clear now that I will easily reach the goal. The final question is – how far can I push to surpass it?

 

How was your month? Are you sharing any dividend payers with me? Are you close to achieving your goals this year? As always, thanks for reading and don’t hesitate to leave a comment!

10 thoughts on “September 2019 Passive Income Summary

  1. Over a 300% jump in the month income year over year… great to see and keep it up! I just added shares of Altria last month and that’s going to give me a good bump in dividend income.

    1. Thanks a lot Brian!
      I can see Altria in most of the dividend growth portfolios. I don’t own them (or any other sin stocks) yet but it’s one of the stocks I am always considering to add to my portfolio. It seems to be really beaten up now and that dividend yield is definitely attractive!

  2. BI, it looks like you are on a good way to reach you annual income goal. Great job!
    I see that the number of companies that pay you dividends is also growing. It provides a good diversification. In case one or two companies decide to reduce/or cancel the dividend, there are other holdings that can compensate it. That’s how I view diversification – mostly from an income perspective.
    Keep it up!
    -SF

    1. Hi SF,
      Thanks for the comment and I totally agree with your thoughts about diversification. I received a dividend cut from a Lithuanian company this May but other companies compensated the loss and I still squeezed an increase 🙂

  3. Solid results and impressive growth BI. You are consistenly building on your portfolio and the results are showing. Keep up the great work!

    I’m looking into diversifying more geographically, so I’m investigating the possibilities. Hopefully also some green energy or something to add to my environmental impact. Who knows! 🙂

    1. Thank you very much Mr. Robot!
      I think it’s smart to diversify geographically and reduce the risk even more. Looking forward to see what your next buys are.
      Not related to investing, I am going to a conference in Utrecht tomorrow. It’s my first time in the Netherlands. Any suggestions what I should see if I have some free time? 🙂

  4. First off, congrats on achieving your U.S. PADI increase goal. So impressive to achieve it in only 3/4 of the allotted time.
    I love seeing all those new dividend payers. You are building our your portfolio in fine fashion. I happen to share 5 of your 7 dividend payers this month… thus very familiar names for me.
    With so many new stocks in your portfolio, the coming year should yield many more dividend increases for you to realize…. something to look forward too, for sure.
    Nice work, BI!

    1. Thanks a lot ED!
      I like the growth for sure. Unfortunately, the investments will slow down frok my end until end of this year. On the other hand, received dividends will cover more and more of my next purchases, so that’s nice 🙂

  5. BI-
    Awesome! 2019 has been a break out year for you. You’ve smashed 2018 almost every month.
    I noticed in your purchase of EMN that you noted the purchase price included commissions. It seems like most brokerages are now zero dollar commissions. You might consider moving your money to a new brokerage. They will usually pay any account closing fees from your current brokerage and give you a bonus for opening an account.

    1. Hi Passive Cash,
      Thanks a lot for the kind words and for the suggestion. Unfortunately, there are not that many brokerages with zero commissions available in Lithuania. However, there is one fintech (Revolut) which I may try but I wouldn’t like to keep all of my investments with them as they are loss-making so far.

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