December 2018 – Passive Income Update
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.
| Stocks | Dec 2017 Income | Dec 2018 Income |
|---|---|---|
| IBM | 27.00 USD | 28.26 |
| Cineplex | 11.20 | sold |
| Russell Metals | 17.48 | 17.48 |
| Altagas | 5.48 | 5.48 |
| Sienna Senior | 2.40 | 2.45 |
| Highliner Foods | 21.75 | 21.75 |
| Canadian National Railway | 14.85 | 28.21 |
| Manulife | 6.15 | sold |
| ZDY Etf | 7.13 | 7.67 |
| Inter Pipeline | N/A | 7.98 |
| Auto Property's | 3.62 | sold |
| Richie Bros Auctions | 32.63 | sold |
| Boardwalk Reit | 5.44 | sold |
| Hydro One | 44.22 (One Drip) | sold |
| Brookfield Renewable | 62.66 (One Drip) | 89.29 (2 Drip's) |
| Corus Entertainment | 9.79 | 13.32 (3 Drip's) |
| Shaw | 29.82 (One Drip) | 31.01 (One Drip) |
| Canadian Utilities | N/A | 75.51 (2 Drip's) |
| Riocan | 37.95 (One Drip) | 40.20 (One Drip) |
| Extendicare | 15.32 (One Drip) | 17.00 (2 Drip's) |
| Enbridge | 193.98 (3 Drip's) | 238.89 (4 Drip's) |
| Totals | 548.87 | 624.5 |
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!
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?
Hey I’m Rob, creator of Passive Canadian Income.
In 2011 me and my wife had almost $60,000 in debt and a negative $7,000 Net Worth. Through hard work and financial education we paid all that off. Now we are focusing on increasing our Passive Income Streams to make the money work for us. Feel Free to Follow along the Journey by clicking the Social Media links below or subscribing to get notified of new posts on the sidebar.
Nice progress man! Best of luck with your financial goals in 2019!!!
Thanks Wally. Same to you.
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! 🙂
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
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 🙂
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!
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
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
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!
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
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.
hey Bob
Thanks! I would think they are sustainable currently, but Ill stay away and stick to the big boys.
haha
cheers
Congrats on a huge Passive Income increase compared to last year!!! Keep up the great work and onwards and upwards 2019!
hey Gym
thanks alot. Heres to a great 2019!
cheers
Happy new year Rob! Great passive income for the year, a 120% increase is amazing! Keep up the great work in 2019!
DI
hey Dutch thanks man! All the best in 2019.
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.
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
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!
hey Daze
Thanks alot, it deifnately feels good seeing it all written down
All the best in 2019.
Happy New Year Bob! Wow, impressive yearly passive income! I usually sell shares of companies that cut their dividends. Have a great 2019!
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!
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
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
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!
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!
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
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!
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
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!
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
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!
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
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
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!
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.
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
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!