December 2020 Passive Income – New Record. Ho Ho Ho!

December 2020 Passive Income

December 2020 Passive Income – New Record. Ho Ho Ho!

  • 1 Dividend raise – Enbridge
  • 1 Dividend Cut – Riocan
  • 3 Sources of passive Income
  • $772.50 from dividends
  • 19 stocks dripped in December

2021 Baby! Happy New Years to you all. 2020 was a weird year but we tried to make the best of it. Financially things could of been a lot worse but the markets keep roaring and the incomes keep coming in. New records continually become broken among the financial blogging community. Its great to see!

Life

As I mentioned last month our landscape season shutdown for the year and I was starting to look for a new job for the winter. I found one pretty quickly and got a 6.50 raise the 2nd day! Doing indoor reno’s – demoing right to the studs and redoing everything, so that’s been good.

Christmas was good but we are in lock down again. So it was quiet and full of zoom calls. Kids got spoiled and I spent the day basically building everything for them. haha Kept it simple and just made some pulled pork sandwiches. Wife got me some sweet socks for Christmas though.

Weather has been all over the place this month, but we finally were able to get on the rink and start tearing it up. The kids definitely enjoy it more this year than last year. I keep working on my mighty ducks triple deke.

Alright, Let’s Get To Our November 2020 Passive Income

Raises or Cuts

1 Raise and unfortunately another cut

  • Enbridge raised theirs by 3% which added $27.70 in forward income
  • Riocan slashed theirs by 33%. Brutal. A loss of $126.72 in forward income.

Total Added Income from Dividend Raises in 2020 – $205.69

Dividend Cuts Reduced Dividends in 2020 by $453.75

Unfortunately the numbers don’t lie. Without new cash or dividends being reinvested this year our dividend income would of dropped. In total we had 3 companies cut their dividends this year. Interpipeline, Riocan and Disney.

All of them got effected by the “pandemic” and I could see why they would cut their dividend.

  • Interpipeline – Energy Stocks got beaten this year but Ipl probably bit off more than they can chew with the heartland project, but at the same time that will be huge once construction is completed. (I have actually been debating adding more at current prices to enable drip and lower that dollar cost average price)
  • Disney – Of course. Parks and cruise lines etc have not done well to say the least. A big reason I bought them was disney plus and that has been fantastic. The stock price has done very well and easily makes up for the lack of dividend.
  • Riocan – Retail has been changing for awhile and they seem to be pivoting to residential. This year though I feel governments killed retail. It makes no sense to close down most businesses and force everyone to flock to the big corporations. Lock downs clearly don’t work, just kill small businesses and test how much they can control people. Meanwhile politicians clearly aren’t listening and when they get caught, oh he wont do it again… But kids get arrested for playing ice hockey outside in Calgary……..

End of rant. Dividend cuts suck, but whats happening politically right now is waayyy worse.




July 2019 Passive Income

December 2020 Dividend Income

14 Companies paid us this month.

StocksDecember 2019 IncomeDecember 2020 Income
IBM29.16 usd45.64
JNJ43.43
3M17.28 usd32.34
Microsoft6.72
Altagas2.40sold
Inter Pipeline28.64 (1 Drip)8.32
Canadian National Railway33.3344.28
Extendicare17.92 (2 Drips)19.20 (3 drips)
Riocan29.64 (1 Drip)31.68 (1 Drip)
Canadian Utilities84.54 (2 Drip's)90.56 (2 Drips)
Smart Centers025.59 (1 Drip)
Brookfield Renewable98.55 (1 Drip)83.28 (1 Drip)
Brookfield Property Partners111.39 (4 Drips)121.14 (6 Drips)
Enbridge163.10 (2 Drips)220.32 (5 Drips)
Totals615.95772.50

19 stocks Dripped in December – Beautiful stuff!

A noteworthy 25.41% year over year growth rate. All those core positions have grown nicely other than brook field renewable, but that’s because we sold the spin off stocks we received. Hindsight – That was a bad move…. haha =)

If your interested check out our Previous Dividend Income Reports.

Our Drips (Dividend Reinvestment Program) added $33.57 to our yearly forward dividend’s this month.

December 2020 Passive Income


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 Panel Income

In November (We always get paid a month later) our solar panel system generated 287 kWh. Since we bring in a fixed rate of 28.8 cents per kilowatt hour, Hydro One deposited $82.66 into our chequing account this month.

Last November the system generated $64.22. So we were slightly higher year over year.

Total Income for 2020 – $2,535.83

System Installed January 2018

Total System Cost ——–$32,396.46

Total Income Received ——–$7,505.24

_____________________________________________

Amount to Break even —- $-24,891.22



 


December 2020 Passive Income

Total December 2020 Passive Income – $ 1,355.16

December 2019 Passive Income – $1,304.59

Total Passive Income Increase over last year. – $50.57

It’s great to see growth year over year but when you look at them like this it’s not sooo much. Looking at last years results though I notice we got paid by both adsense and amazon in December. Take 125 away for comparison and things look good again!

December 2020 Passive Income

Totals For 2020

Dividends Year To Date Total – $6,648.94
Other Passive Income Year to date – $9,061.58
Total Passive Income for 2020 —– $15,710.52
Year End Goal – $17,200 ——– %91.34

We fell short of the goal, but if we look back at the end of December 2019 our income increased by $800. Not massive but at the same time we focused on buying higher quality lower yield dividend growth stocks.

Moving forward I plan on continuing to focus on buying high quality dividend growth stocks. There were a couple companies in the portfolio that didn’t raise their dividend. I’ll give the banks a pass in 2020 as they weren’t allowed to but it may be time to switch out a couple positions.

Purchases

 

December 2020 Purchases

This month has been a crazy month for expenses this year. I really have never noticed but so many yearly bills come out in December – caa, union dues, scouts, website renewal etc etc toss in 800$ for car repairs and more for Christmas gifts and yeah its not been a cheap month. We were still able to put some money to work though.

  • Added 51 more shares of Algonquin Power – This adds 31.64 usd to that forward income.
  • We also added 10 more xaw etf this month.

You can read about those moves in this post. Algonquin power – doing it well

It always feels good putting money to work for you.

 

Financial Goals Update

Charities

Increase Dividends by $1,713.42 this year. (bringing our forward income from dividends to $7,500 a year)

  • With New Purchases, Drips, Dividend Raises and dividend cuts we basically broke even this month with our dividend Portfolio. Total increased so far in 2020 is $1,442.40. 83.46% of our goal.

Behind on the target but if I look back at a post I made awhile back predicting how our portfolio may look each year for the next 30 years, we are right on track. So that’s good!

Dividend Growth Investing – Looking 30 years into the future.

 

Etf Monthly Purchase of $250

  • We added 10 more shares of xaw etf this month for roughly 315 bucks in our questrade account. Questrade* is great because it offers free etf trades and cheaper stock trading options than most Canadian brokers. $250.00 a month would kill us if we needed to pay high trading fees.
  • * Note the questrade link is a affiliate link and at no additional cost to you, I would get a little payment if you were to sign up. You could get $50 in free trades by using my link though.




December 2020 Passive Income Conclusion

Overall a great month. The totals keep increasing and new records keep getting set. Unfortunately looking back those 3 cuts hurt, but they also remind you to focus on quality. The portfolio still has some room for improvement and I plan on tightening it up in 2021.

How was your 2020? Did you achieve or surpass your goals? Keep growing that passive income, I wish you all the best in 2021.

cheers!

 

 

“What the new year brings to you will depend a great deal on what you bring to the new year” – Vern Mclellan

34 Responses

  1. Ross Mason says:

    Great info Rob as I enjoy reading your updates. Thanks for sharing!

  2. All things considered looks like a decent year. That rink looks dope.
    I’m thinking next year maybe we will do an ODR.

    Nice pickups on XAW & Algonquin. As you know XAW is my largest holding, and AQN is my largest TFSA holding..love both of them!

    Next year for Christmas I’ll get you a tinfoil hat 😉

    • Rob says:

      haha. Wife says the hat really bring out my muscles..

      Outdoor rinks are great but can be alot of work, its warm yet again so I had to shovel all the slush from the snow last night and now we wait for colder weather yet again.

      Love both algonquin and xaw. Ill continue to add to them in 2021 for sure.
      cheers Jordan!

  3. Tawcan says:

    Congrats on a solid year. The skating rink looks pretty awesome. Too bad we can’t do something like that here in Vancouver.

    RioCan dividend cut was a bit expected. Hopefully SmartCentre will continue with the same dividends in 2021.

    • Rob says:

      thanks Bob

      yeah smartcenters and bpy may be at risk for sure. Im curious to see how many shares bpy will buy back this quarter as well though. They tend to take advantage of these lower prices.

      2021 will continue to be a hard year for these retail stocks. Will be interesting to see how the market does in general to be honest.
      cheers man, look forward to your update

  4. Doug says:

    Good job yeah those dividend cuts stink. But the additions help also. Keep on adding.

    • Rob says:

      hey Doug

      thx, I agree but if they get reinstated I guess that would be huge moving forward.. Gotta keep buying quality.
      cheers

  5. JamesB says:

    Like you, I had a few major dividend cuts this year – IPL, REI, HR, WEF. I kept them all because I still think they have a good future ahead and I understand why each of them made the cut to better weather the storm. IPL is my second largest position – I am just waiting for them to bring HPC online and once they do, I believe it will do very well. Overall, I am roughly back to where I was, and have been buying some lower yield plays (MSFT, JNJ).

    • Rob says:

      hey James

      I agree with IPL, honestly currently this is one of my biggest debates.. Its soo cheap should I add more to them and at least get them dripping or focus on the quality blue chips. Heartland will be huge and Im wondering who they want to partner with for it. Im almost thinking brookfield infrastructure or something. Which would be great.

      I definitely want to keep adding to our jnj and microsoft positions in 2021 but they both keep increasing in price. GD is one stock I keep thinking of adding as its relatively cheap and sports a low payout ratio and higher div growth rate.

      cheers James!

  6. DividendsOn says:

    It’s certainly been an interesting year for dividend cuts and suspensions in our own portfolio. IPL cut their dividend as you’ve already mentioned, but CAE suspended their dividends and never brought them back. The good news for us was that Richelieu Hardware suspended their dividend and then re-instated them. Corby and Leons cut their dividends earlier in the year, but then as the year rolled on they actually increased them back to the original dividend payments.

    I think you’re doing fine Rob. Just keep at it.

    Wishing you and your family and all your readers a Happy New Year.

    • Rob says:

      hey hey hey

      Thanks, I agree we keep on growing just some cuts set us back. Corby is a interesting one and I have debated them or possibly andrew peller. People keep drinking at times like these.

      Glad to hear some companies reinstated dividends for you. Cae is a leader in the industry still but obviously airlines have got a hurt real bad this year. They will be back!

      Happy new years to you and the family as well
      cheers

  7. I hope your wife bought you Darn Tough socks. They are amazing! I’m almost guaranteed a pair from my MIL each year. Hope you have a great 2021 and continued passive income increases!!

    • Rob says:

      hey Money Mech

      I actually have never heard of those, gotta look into them with that recommendation. She got me these abominable snowman socks. haha!
      Have a great 2021 as well.
      cheers

  8. I am super jealous of the CNR dividend as its my favorite stock. Looking forward for at least 9% increase from CNR in a few weeks time.

    Great year over year increase.

    Did you have to bribe your son to wear that toque?

    • Rob says:

      haha no but hes not massive maple leafs fan.

      Definitely want to grow that cnr position but not at these prices. Hoping to see a dip in 2021. Looking forward to the raise as well!
      cheers pursuit

  9. Reverse The Crush says:

    Happy New Year to you, Rob! It has been a tough year for cuts and suspensions. I experienced that dividend cut with Riocan too. It was unfortunate. Hopefully business gets back to normal soon. Otherwise, looks like you had an awesome month for dividend income. 19 DRIPs! That’s amazing. And impressive rate of YoY growth. My 2020 was good. I had slower dividend growth but I still had growth. December was my highest month ever for dividend income. I look forward to 2021 reports! 🙂

    • Rob says:

      hey Graham

      Thanks man, yeah riocan cut hurt but should be able to still drip them moving forward. Its all about the drips!

      Congrats on all your growth as well. Gotta check out your december results.
      keep it up

  10. Happy New Year! Glad to see you finished the year strong. Congrats on a record month! Best of luck in 2021! 😀

  11. PCI –

    Happy New Year! Love the income, pumped solar did better than last year. Also – 2021 income is about to blow 2020 out of the water, not a doubt in my mind!

    -Lanny

  12. Bummer on that Riocan cut, Rob. It’s amazing how 3 cuts during the year can overwhelm all the dividend raises. At least the new investment and DRIPs turned your forward dividend income positive overall. Needless to say, you still had a terrific year with continued dividend growth and the multiple passive income sources.
    Happy New Year! I look forward to even better results for all of us in 2021.

    • Rob says:

      hey Paul

      thanks. Yeah its actually kind of crazy to see the dmg 3 cuts can do. I try to keep most of our positions kinda even expect for enbridge that one pays out sooo much of our income. Makes you kind of think of having more positions to lower the impact of potential cuts…

      2021 will be a great year, look forward to seeing everyones growth continue
      cheers

  13. Rob – YES!! Congrats on the new record. Everything is looking great in terms of your dividend and solar income. The ice rink looks awesome and the kinds have to be having a blast. That’s what it is all about!

    Bert

  14. John says:

    Hey Rob,

    Cheers and congrats on increasing the dividend stacks during a very challenging year! The cuts were definitely pretty painful. I felt the IPL loss (though I think that will hopefully work out in the end when Heartland comes online), but the bigger cut for me wasn’t individual shares, but from the overall decrease in the dividend level of global markets. VTI, XEF, IEMG & XEC all paid less this year than last, to varying degrees. Probably not surprising; but since I estimate forward annual dividends for my index funds using trailing 12 month payments, my expected 2021 dividends took a big hit this last month. Hopefully this just means I’ll be the beneficiary of super surprises to the upside in the coming year.

    In terms of 2020 goals, it was a mixed bag:

    – Increase YoY dividends earned (Succeed)
    – Receive at least $10,000 in dividends (Succeed… barely)
    – Increase Q4 2020 dividends over Q4 2019 (Succeed)
    – Increase December monthly dividends YoY (Fail)

    At least the New Year is starting out with a bang with the BPY buyout offer. What do you think of this one and which payout option would you take if it goes through?

    John

    • Rob says:

      Nice John

      Sounds like you killed your goals. The December one is soo minor, if you step back and look at quarter over quarter growth.

      The bpy news actually was a shock. I knew they would be continuing to buy back shares but I didn’t think they would go private. The stock price has actually popped over that 16.5% premium so Im thinking of cashing them all in (atleast at a small profit) and buying rit etf. Higher fees but has outperformed the other top etfs out there..

      Im just debating throwing exetendicare in there too. Taking a loss on them but could be a lot worse though if the govt didnt give them all that money while they continued paying their dividend…

      Either way I think bam is getting bpy for a steal but the move would lower my retail exposure which is probably good moving forward.
      what are you thinking of doing?
      cheers and happy new years!

  15. Rob congrats on solid results during a tough year. Happy new year, enjoyed the detailed update. I’m definitely interested to see how the solar does in the next few years as that’s something we’ll be thinking about adding eventually for our new home.

    • Rob says:

      Hey Time

      thx alot. Our solar income was Lower in 2020 but I think that’s our big tree just growing and blocking it.

      Solar is a great investment – it feels good and it’s probably the most passive income you can generate. We literally do nothing but collect money =)

      all the best in 2021!

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