December 2018 – Passive Income Update

December 2018 - Passive Income
December 2018 – Passive Income Update

Here we go! The start of another fantastic year. Happy New years to all of you. I hope you all had a wonderful new years with a couple cold beers or whatever you fancy. This is our December 2018 Passive Income Report.

December was yet again a great month. The weather here has actually been pretty mild, but we did have a dash of snow on Christmas to whiten everything. The sickness is gone in our house now, so we did a couple hikes with the dog. Me and my son are playing a lot of super smash bros these days on the nintendo switch. I guess Santa was pretty nice this year. Anyways love the game, and maybe Santa got it partly for himself as well =) Ho Ho Ho!

Raises or Cuts

Might as well start with the bad new first. Altagas cut their dividend by 56%… Big cut but when I really felt they would cut it, it was too late. The price dropped so much that after the cut it currently yields 7%. I have even debated buying more at these prices… I need to keep reminding myself to focus on dividend growth stocks, but the value seems so good at these levels. My holding is less than 1% of my portfolio, so I’ll continue to hold and it really wont hurt the income that much.

Meanwhile the portfolio got a couple nice raises.

  • BMO boosted theirs yet again, this time by 4%. MMMMM……
  • National Bank followed suit with a 4.8% raise this time, got to love these Canadian banks!
  • Enbridge came through as promised, tossing everyone a extra 10%!

This is huge considering they are my biggest holding by far. The raise alone was over $90 in forward income and pushed our yearly dividends from Enbridge over 1000 bucks now, Just crazy! But also reminds me I really need to cut this position down in size a bit. Love the company, its just too big of a holding of mine.

 

 

Dividend Income

15 Companies paid us this month.

StocksDec 2017 IncomeDec 2018 Income
Totals548.87624.5
IBM27.00 USD28.26
Cineplex11.20sold
Russell Metals17.4817.48
Altagas5.485.48
Sienna Senior2.402.45
Highliner Foods21.7521.75
Canadian National Railway14.8528.21
Manulife6.15sold
ZDY Etf7.137.67
Inter PipelineN/A7.98
Auto Property's3.62sold
Richie Bros Auctions32.63sold
Boardwalk Reit5.44sold
Hydro One44.22 (One Drip)sold
Brookfield Renewable62.66 (One Drip)89.29 (2 Drip's)
Corus Entertainment9.7913.32 (3 Drip's)
Shaw29.82 (One Drip)31.01 (One Drip)
Canadian UtilitiesN/A75.51 (2 Drip's)
Riocan37.95 (One Drip)40.20 (One Drip)
Extendicare15.32 (One Drip)17.00 (2 Drip's)
Enbridge193.98 (3 Drip's)238.89 (4 Drip's)

15 Drips this month. Sweet you got to love these lower prices in the market now!

December 2018 Dividend Total = $624.50 (%13.72 higher yr over yr)

December 2017 Dividend Total =$548.87 (Previous Dividend Income)

Our Drips (Dividend Reinvestment Program) added $26.21 to our yearly forward dividend’s this month.

 

A 13.72% year over year growth is not massive, but respectable. Selling those stocks in August for the car, hurt these percentage changes, but no regrets!


Other Income

Private Investment Payment – $500.00

Nothing new here, just our regular monthly payment. (I don’t even have to edit this part every month) Steady Eddy…….


Solar Income

 

In November our solar panel system generated 138 kWh. A surprisingly low number. Considering we got hammered with snow in mid November and it didn’t go away until December I guess I can’t complain. Since we get paid a fixed rate of 28.8 cents per kilowatt hour Hydro One deposited $39.74 into our chequing account this month. Womp Womp………

System Installed January 2018

Total System Cost ——–$32,396.46

Total Income Received ——–$2515.96

_____________________________________________

Amount to Breakeven —- $-29,880.50


Adsense

Thanks again to everyone using one of our referral links to amazon to make their purchases over the holidays. Amazon tossed us a cool $12.10. Not a massive chunk of change but that’s like 4-5 tall cans. Party Time!


December 2018 - Passive Income

Total December 2018 – Passive Income – $1176.34

Total Passive Income Increase over last year. – hahaha just over 15 bucks…. Kind of laugh-able.

Not Huge at all, but looking back last December Google deposited over 110 bucks from adsense. These payments make things a little less predictable with year over year comparisons, I guess. Free money though, no complaints here.

Totals For 2018

Dividends Year To Date Total – $5076.33
Other Passive Income Year to date – $8956.87
Total Passive Income for 2018 —– $14033.2
Year End Goal – $15,000 ——–%93.55





December 2018 Purchases/ Sales

In a effort to better diversify our current investment portfolio I decided to trim a bunch of positions that were over 5% of the portfolio and move them into my lower overall sectors. Don’t get me wrong I’m long all these stocks. (besides the etf) I sold the etf because it was in our rrsp account and id rather have a solid healthcare dividend stock with no management fees to boot!

Sold

  • 15 shares of Td bank
  • All our zdy etf holdings
  • 100 shares of Riocan

Bought

  • 111 shares of Transcontinential
  • 197 shares of Dream Global Reit
  • 34 Shares of Abbvie

You can read about all these moves, in this post. Overall, I think the recent moves makes my portfolio better for the long run.

Conclusion

It really shows you how beneficial doing these kinda of monthly posts are. I honestly thought we have been killing it in these quarter ending months, but yet the increase year over year is very minor. At least, in this regard. I know I have been focusing more on improving the other 2 months though.

Overall the growth as a whole has been very good, and I learned a lot of lessons this year. Luckily both my dividend cuts were small holdings. If I recall right Dave Ramsey called these mistakes stupid tax… Haha!

While we didn’t hit our overall goal this year, it was pretty dam close and I’m proud of how we are doing. Last year we ended up bringing in $6,328.41 in passive income, which was way more than I thought we would.

Here we are a year later and we brought in $14,033.21.

A year over year increase of %121.74.

If you look at it this way, man that’s pretty dam good! How quickly that smile can come back. haha… While I highly doubt these growth rates will continue, I’ve been wrong before.

As always the funds just get put back to work to strengthen our dividend portfolio.

Thanks

Id like to end this by just saying thanks to all of you. This community rocks! As a whole we continue to get better, which is evident by the dividend diplomats monthly wrap-ups. I love the comments, suggestions, encouragement and knowledge we all bring to the table. Don’t forget to give yourself props once in awhile.

A special shout out to AllIncomeStream for pointing out how broken my site was after I tried changing the theme up. It looked fine on my end and for some people. But clearly for a lot of people they couldn’t see anything. I noticed the lower traffic, but had no clue why. I’m glad you and other reader’s notify me when they see a issue.

This Bud’s for all of you! Thanks for a great 2018.

Cheers to 2019!

How was your December? Or better yet how was your 2018?

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38 Responses

  1. Wally says:

    Nice progress man! Best of luck with your financial goals in 2019!!!

  2. Happy New Years PCI! 😀 Great work on a four-digit passive income stream. I am thinking sometime in 2019 I will see a 4-digit month. Going to be an exciting year! Congrats on a great year! 🙂
    My Dividend Dynasty recently posted…December 2018 Dividend IncomeMy Profile

    • Rob says:

      hey Dynasty

      Thanks alot. You should of hit it this month, so for sure next year you will hit that number.

      keep it up. cheers to 2019

  3. Wow what a fantastic month and year Rob! I like the purchases you made this month. Good point you make about your Enbridge position, I own a lot of them as well and I might need to trim my holding to diversify. I love your other income streams as well. What a great way to end 2018.

    Have a great 2019 🙂

    • Rob says:

      hey Matt.

      I found the dividend growth for these months kinda low. I got to work on that.

      Enbridge is hard one. I really like them but it would be a smart move to diversify a little better.

      keep doing what your doing as well, very impressive.

      cheers!

  4. Rob,

    Happy New Year! Congratulations on an awesome 2019. I’ve enjoyed reading your monthly posts and watching your dividend income and total passive income grow. I agree, the monthly summary posts help keep you on track and push you to continue growing/pushing yourself. You put down an excellent foundation in 2018, now let’s see what you can unleash to the world in 2019.

    Bert

    • Rob says:

      hey Bert thanks alot. Same here. Love watching what you and Lanny have been watching and buying on the other side of the border.

      You guys have put out a great year as well.

      keep keeping on!
      cheers

  5. Hey Rob! Very nice progress! The dividend raise from Enbridge should party offset the cut from Altagas. I have 99 shares of ALA so my dividend income will be lowered by around $10 per month. But the stock price got so low that I’m considering adding to my position. At the end of the day, it’s an utility company with predictable cash flow. Sometimes the management mess up with M & A but the last acquisition is finally closed. All the mess is in the past. Anyway, your achievement in passing income is inspiring! From 6K to 14K is just insane! And the best thing, you don’t have to work for that money. Road to freedom! All the best in 2019!
    Dividend Income Stocks recently posted…Portfolio Value Update – December 2018My Profile

    • Rob says:

      hey German

      Dam sorry to hear, the cut and stock depreciation on alta hurts.. Long term it should be good though.. I think I’m gonna try to stay away, it would be nice to lower that dollar cost average but there’s a lot of good deals out there at the moment. While I’m trying to cake the aloe vera on, the burn still hurts haha! I think your right, but they are still pretty debt heavy.

      Your right about that road! No cops, the odd pothole but other than that just smooth sailing!
      Cheers
      German

  6. Tawcan says:

    Congrats on a solid month and a great year. Dividend cuts are hard but when the stock is yielding 7% after the cut I’d caution that the payout ratio is probably still not quite sustainable.

  7. GYM says:

    Congrats on a huge Passive Income increase compared to last year!!! Keep up the great work and onwards and upwards 2019!
    GYM recently posted…We Almost Hired a Cleaner: Here’s What We Did InsteadMy Profile

  8. Happy new year Rob! Great passive income for the year, a 120% increase is amazing! Keep up the great work in 2019!

    DI

  9. Congrats on a great year. I never thought of doing anything like adsense…but now that you mention it can buy a couple beers each month…hmmm…might have to look into it…lol

    Big fan of the TCL buy! I hope TCL and Adrew Peller stay low for a while -so once I get my tax refund I can scoop some up!

    All the best in 2019.
    Jordan Maas recently posted…Happy New Year! December update – New Dividend Record!My Profile

    • Rob says:

      hey Jordan

      Thanks man. Definately! I think everyone who has a blog should do adsense. There is no harm to it.

      Heres hoping the prices stay low for ya!

      cheers man

  10. Congrats to a fantastic year! You pulled some serious dividend and passive income numbers this year. Keep up the great work and hope you have a great 2019!
    Dividend Daze recently posted…Dividend Update – November 2018My Profile

  11. Happy New Year Bob! Wow, impressive yearly passive income! I usually sell shares of companies that cut their dividends. Have a great 2019!

    • Rob says:

      cough cough Its Rob….

      lol. yeah i think alot of people do. Maybe its my rookie mistake but i feel their share prices are too cheap to sell.

      cheers All!

  12. Hi Rob,

    Happy New Year!! Congrats on a great year.

    Dividend cuts are always tough but if you have a diversified portfolio overall you’ll be fine. What I do now to adjust the weighting of securities/sectors/asset class is what I call tactical DRIPs. If for example my holdings in TD is getting too large I will stop the DRIP on the security and just take the cash. I then use the cash from this security, other secutries and additional depositis/contributions to buy other securities. I only sell something if the stock no longer makes sense. I call it tactical DRIPs. Just another way to think about things… There’s no right or wrong way.

    Good luck in 2019!!!
    Ernest
    Steps To Early Retirement recently posted…2018 The Start of Our Early Retirement AdventureMy Profile

    • Rob says:

      hey Ernest.

      thanks alot, yeah lucky the cuts have gotten are tiny holdings so they really havent been that bad.

      Love your drip technique and i thought of doing the exact thing. Unfortunately rbc drip program is all or nothing. Somethings are really old fashioned on their platform. It would be nice to select which stocks to drip. Especially when I feel they are overvalued.

      Ahh well.

      cheers
      Ernest

  13. DivvyDad says:

    Congrats on a great month and year, and love the reference to some tall cans! You’re really living up to the name of the site as that is some really impressive passive income. Here is to a prosperous 2019!
    DivvyDad recently posted…2019 Goals :: Dividend PortfolioMy Profile

    • Rob says:

      hey dd

      Love it man, thanks! Thats the goal. Wrote up a mock spreadsheet of our passive income for the next couple years and its pretty impressive. We just got to stay the course.

      cheers Double d!

  14. Brian says:

    Rob what an awesome journey you’ve been on. Very impressive year end. Diversifying is important and you’re acknowledging that and doing what you feel needs to be done. There is no book on how to do each and every move!

    All the best in the new year!

    See you next month

    Brian

    • Rob says:

      hey Brian

      Thanks man, you have been killing it as well.

      I recently sold off a chunk of Enbridge and feel good about how well diversified the port is becoming.

      cheers!

  15. Hi PCI,

    Seems like a solid month there! To bad you had a dividendcut, but the raises will quickly ofset that.

    Keep up the great work!

    Cheers,
    TLTI
    The long term investor recently posted…Get stocks for Christmas, they are getting cheapMy Profile

    • Rob says:

      hey Lt

      cuts happen, but they hopefully teach me to stick to better companies.

      Luckily the enbridge massive quardupled the effect of the dividend cut. lol.

      cheers Long!

  16. Doug says:

    Good job nice job on the dividends this year sucks you had to sell some to buy a car but sometimes you need reliable transportation. Keep it up
    Doug recently posted…2 Dividend RaisesMy Profile

    • Rob says:

      thanks Doug

      It kinda sucks, but looking back i wouldnt change a thing.
      The yearly overall growth should be the maIn thing everyone watches to see how well they are doing. This just shows me i need to focus on theae months as well.

      cheers Doug!

  17. Hey Rob,

    Just keep doubling your passive income YOY every time around and you’ll be smashing your goals in no time! Looks like you were pretty active in selling out of some positions along the way. That said, getting a 10% boost from your largest dividend payer is amazing. That’ll give you plenty of momentum heading into January.

    Great work in December.

    Ryan
    Get Rich Brothers recently posted…December 2018 Portfolio UpdateMy Profile

    • Rob says:

      hey Ryan

      thanks man, while i highly doubt it will double that would be nice.

      Yeah ive sold out of a bunch of positions. (Long term it will be a great move) But I hate seeing all the sales on the table.
      Trading to often isnt necessarily a good thing….

      Time to check out your month
      cheers Ryan

  18. Happy new year to you too and congratulations on a great year! I wish the weather had been mild here too. We had a huge snowstorm a few days ago and 50 000 households lost power for days. I guess our solar income would have been zero!

    Have a great 2019 and keep up the great work!
    Dividend Deluge recently posted…Passive Income – December 2018My Profile

    • Rob says:

      hey Deluge

      I really wish we get some snow. Got a gt for our son in the summer and hes dieing to use it.

      We had a big storm a couple years back that knocked out everyones power. Was kinda nice because everyone interacted more and was outside. Sucks in the winter though!

      cheers Dd.

  19. Hey Rob
    Happy New Year and congrats on that very robust December dividend income.
    I like your stock holdings. With regard to Enbridge, I get your point that it became the most important dividend payer in your portfolio and I agree, there is always a risk, when it‘s too concentrated on one position. But as far as I understand, that company shows good dividend growth and in combination with your dividend reinvestments with a high yield on costs, this will/would compound nicely over time. As far as fundamentals remain as they are, isn‘t there a risk by weakening one of your strongest player in your portfolio? It reminds me Royal Dutch Shell, I acquired stocks back in 2009 and it was by far one of my most important contributors for some years. But over the years, as a portfolio grows and gets more diversified it will also get more balanced in terms of contributors. Automatically. And the 20/80-rule always applies, for instance in a portfolio with 50 holdings, over the longer run there will be 20 % amazingly strong contributors and the rest will be pretty average – and in some (hopefully very) few cases poor dividend payers.
    Today I have several more, evenly important dividend contributors like RDS. In my case, I am pretty sure that I would have weakened my portfolio if I had trimmed my RDS position.
    Cheers
    Financial Shaper
    Financial Shaper recently posted…2018 Passive Income Review and OutlookMy Profile

    • Rob says:

      hey shape

      Thanks

      Man great points… Gotta say I recently sold off alot of enbridge though. Its a solid stock but its overall size of portfolio and percentage of forward total dividends (over 20%) it was time to cuut the postion down.

      It will actually be my next post. While it may not result in the same dividend growth, it lowers my overall risk and diversifys my portfolio alot better.

      It would of taken alot of new capital to lower my position to around 5% of the portfolio.

      cheers!

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