January 2023 Passive Income – A New year brings a lil Pup!
January 2023 Passive Income
- 4 sources of passive Income
- $848.52 from dividends
- 41 stocks/units dripped in January
- Trailing 12 Month Portfolio Return 2.11%
S&P 500 12 Month Total Return -8.22% for January 2023
S&P/TSX Composite Index 12 Month 0.69% January 2023
Hey Hey Hey
What a start to the year eh? The market is flying and the deals are getting harder to find. Bitcoin is up over 37% in January as well. Does it make sense? I dunno…. We are starting to see massive tech layoffs, crazy energy bills and some companies lowering guidance. But overall things do look better in the market than what I was expecting, although winter isn’t over yet. One could argue – here in Ontario that it actually just begun. (around -30 the last couple days) This month’s Enbridge bill is gonna be fun!
Life
In November we had to put down our husky Sage after being together for almost 16 years. We planned to be dog free for awhile, the house would be quieter, travelling would be easier etc etc. Well that didn’t last long, after our trip last month I was ready for another dog. The house was too quiet and let’s be honest we don’t walk our dogs, they walk us. I missed that a lot, going on hikes or just taking the dog on walks.
Well we went to the extreme after seeing not many kid friendly/dog friendly dogs at the humaine society. We got an 8 week old puppy. What were we thinking! Its a lot of work, I have never had a puppy in my life before. You know it will be some work but boy oh boy haha. Anyways shes getting better – House trained crate trained etc but we need to work on her jumping on the kids skillz. haha
Anyways shes a mini Australian sheppard, border collie cross. Full of energy, loves playing fetch, running and barking……….
I got that bowflex I mentioned last month. Its been great and I’ve been using it quite a bit. Body is getting swole and the wife is giving me that wink again. (old bowflex commercial) At the start I was really good with diet but have started falling off that again. Room for improvement still.
Our daughter turned 5 and was finally able to have her first real birthday Party. (covid lockdowns) Chucky cheese. It was a great time and they even have all you can play packages, which was just fantastic.
Alright, Let’s Get To Our December 2022 Passive Income
Raises/ Cuts
Let’s start this off with the bad news, we all knew it was coming.. Algonquin cut its dividend by 40%, a big cut but honestly I was expecting a 50% cut once the stock price tumbled and they mentioned they would be looking at their dividend. Their debt is a big concern and kinda seems like a canary in the coal mine situation in this interest rate environment. Will this dividend cut be enough to fix the situation? Time will tell. They still own the water and renewable’s though, so I’m holding on to this position.
Total forward dividends lost – 247.84
CNR – They announced their yearly raise in January like clockwork. The raise was lower than I was expecting (based on historical raises) but still was a nice 7.8% raise. This added $25.07 to their forward income.
APD – One of my best pickups in 2022 came through. Not only has this stock jumped from like 220 last year to over 300 but they also continue to raise that dividend. They raised their dividend 8% adding an additional $23.92. Hydrogen continues to be an area I’m really excited about moving forward and they seem to be really well positioned for that moving forward.
Total Added Income from Dividend Raises in 2023 – Negative $198.85
Unfortunately we start 2023 with negative forward income from raises and cuts. While our portfolio is full of better companies than when I first started, cuts can and do still happen.
January 2022 Dividend Income
9 Companies paid us this month.
| Stocks | January 2022 Income | January 2023 Income |
|---|---|---|
| Rit ETF | 66.35 (3 Drips) | sold |
| Smart Centres | 33.45 (1 Drip) | sold |
| Restaurant Brands | 75.07 | sold |
| Bank of Nova Scotia | 105.00 (1 Drip) | sold |
| Nutrien | 27.99 | 31.21 |
| Telus | 87.09 (2 Drips) | 1.40 |
| Bell Canada | 140.88 (2 Drips) | 155.48 (2 Drips) |
| TD Bank | 117.48 (1 Drip) | 42.24 |
| Aecon | 0 | 116.55 (12 Drips) |
| TC Energy | 117.45 (1 Drip) | 159.30 (2 Drips) |
| Cisco | 51.06 | 53.58 (1 Drip) |
| Xaw ETF | 90.09 (2 Drips) | 82.68 (2 Drips) |
| Algonquin Power | 113.02 (6 Drips) | 206.08 (22 Drips) |
| Totals | 1,024.93 | 848.52 |
41 stocks/units Dripped in January.
Our dividend income is lower year over year as we sold a bunch of positions to pay off our heloc. The lower prices of Algonquin and Aecon really pumps up our drips though. This may be a record for drips. =)
If your interested check out our Previous Dividend Income Reports.
Our Drips (Dividend Reinvestment Program) added $36.14 in future dividends.
Other Income
Private Investment Payment – $1000.00
1k a month, very nice!
Solar Panel Income
In December (We always get paid a month later) our solar panel system generated 115 kWh. Since we bring in a fixed rate of 28.8 cents per kilowatt hour, Hydro One deposited $27.98 into our chequing account this month.
Last December the system generated $36.33 so we are slightly lower. Winter months for solar definitely don’t do much.
Total Income for 2023 – $27.98
System Installed January 2018
Total System Cost ——–$32,396.46
Total Income Received ——–$12,200.27
_____________________________________________
Amount to Break even —- $ –20,196.19
Slowly but surely. 5 Years of having the system and we have paid off 37.65% of the system. Definitely lower than what we were told the system would generate. Is it the tree or just a classic sales pitch of over promise? Who knows, it is what it is. Bring on the summer!
Cash Back Credit Card
Every year in January we get money from using our cashback Credit card the previous year. We always pay our balances off, so this is bonus money. In January we received $763.84. Sweet! A big jump from 2022, clearly we are spending more…. Inflation?
Total January 2023 Passive Income – $2,640.34
January 2022 Passive Income – $2,257.44
While our dividend income is down, the overall passive income continues to increase. It’s a beautiful thing!
Totals For 2023
Dividends Year To Date Total – $848.52
Other Passive Income Year to date – $1,791.82
Total Passive Income for 2023 —– $2,640.34
Year End Goal – $26,000
We ended 2022 with a passive income just over 24k. The goal for this year is 26 thousand. Not a huge increase, but a solid one overall. I don’t want to be chasing yield just to achieve a higher income goal. Let’s get it!
January Stock Purchases
Let’s be honest, my buys have been extremely boring lately. I continued to grow our Microsoft position. During the last year we grew our position from almost nothing to now a top 3 position. Currently I think this is a full position now unless we see Microsoft under 200….
We added 7 more shares of Microsoft for $226.93 per share adding $19.04 in forward income.
Bitcoin
As I mentioned at the start of this post Bitcoin has been on a massive tear since the start of the year. With the ftx scandal in the rear mirror, crypto can run again. Just remember all these scandals and stuff is always these crap coins… Personally I’m only sticking with Bitcoin.
Total invested – $310
I decided to go with shakepay because it is regulated in Canada and you shake the phone daily to get some free sats (bitcoin). I shake everyday and with a 77 day streak, I’m now getting about 12 cents a day in free bitcoin.
A 100 dollar deposit gets you 10 bucks and 10 for the referrer. Feel free to use my affiliate here if your interested in trying out the crypto space. I appreciate the support.
Financial Goals Update
Charities
- We continue our monthly donation to The Nature Conservancy of Canada of $85.
Etf Monthly Minimum Purchase of $250
- This month we added 6 more units of xaw etf.
- 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 affiliate link though.
January 2023 Passive Income Conclusion
The year starts off with lots of good news, but the algonquin cut still hurts. Its part of investing though, always stay diversified. The year is young, there is still plenty of time to set new highs in income.
When Nothing is Sure, Everything is Possible – Margaret Drabble
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.
Algonquin Power cut their dividend AND cancelled their dividend reinvestment plan. I am beyond frustrated with them cancelling their DRIP, but with their price being so low I am increasing my position in them.
hey Jake
No question the cut and drip program cancellation was bad.. Heres hoping they learned from it. I think the stock is a decent buy at these prices. Lets just hope they dont issue more shares, like they have been. Especially at these prices.
cheers man
Congrats Rob 🙌🎉💰 for your $848.52 in dividends! I’m glad I sold AQN!
Thanks. Algonquin still owns the assets, so im holding.
Nice to see the passive income flowing in strong! Dividend cuts suck… I got one so far in February (VFC), but we shall recover from them and move forward even stronger! 😀
hey Dynasty
thanks. that vfc cut you dont see too often. The fall of a king, although I think 3m may cut soon enough too though. Didnt vfc raise the dividend like a quarter or 2 ago as well? brutal…
Im sure we will be setting new highs in due time
cheers bud
That’s one cute looking puppy! Going to make sure the wife doesn’t see it, because you know, we don’t need a new dog 🙂
Lots of hate on for AQN right now, but how could you be mad at them after dripping 22 shares in January!? They’re like a child who accidentally breaks something but you forgive them and life goes on, and their dividend cut actually serves as a good reminder that stonks don’t always go up. Most retail investors have forgotten (or never learned) that fact.
My average AQN purchase price is around $15-CDN so I’m holding even though my annual income dropped over $2K from the cut. Ouch… however with 2023 Q1 dividend increases from other companies combined with 2023 Q1 drips the portfolio will have recovered that $2K by the end of March, all without lifting a finger. So why panic!? And since AQN cancelled their drip this was the perfect opportunity to journal all my corporate account AQN shares to USD and collect coveted USD income.
With Algonquin’s dividend cut seemingly featured on every single blog I decided to consult the archives for the last time a cut happened in my portfolio. Had to go back 8-years to 2015 when Canadian Oil Sands ran into trouble and dropped their dividend pants. Overall Canadian Oil Sands produced profits for me over the years, and AQN is likely to be the same. In fact since buying my first stock in 2004 the only two dividend cuts for me in the 19 years since were COS and now AQN (that includes the 2008 and 2020 market drops). Not bad… so I’m going to crack another beer and continue on without worry, the dividend investing process works.
That Telus dividend of yours is crushing it! I do like the stonk and bought more in January.
thanks Norm
Shes great, growing fast but full of energy! wow thats a huge loss of income for you, but just shows how big of a position/ portfolio you have. Gotta love getting that usd income, so thats a nice move. I hate converting our dollars, although I do love buying those blue chip american companies with it. So i guess its a love/hate thing =)
Your doing awesome when it comes to cuts. Ive had a couple but those are cheap learning lessons in the early days investing. Just nudges me to keep buying Quality blue chips.
haha you like that telus dividend eh? Shes a beaut! I’ll grow that position again soon enough.
cheers Norm!
Hey Rob! I experienced a dividend cut in Feb. (VFC, -41.18%) so I know the pain. Like you with AQN, I’m planning to hold VFC for the time being. Hopefully, the cut reduces the financial strain and allows management to right the ship.
I like your nearly $850 in dividends. Keep it going there.
Love the MSFT addition. I’ve been trying to grow my position, but it’s been in much smaller chunks (usually 1 share at a time) than you have been doing. My MSFT position is roughly 1/3 the size of yours… some work for me to catch up!
It was a good start to 2023 for you… here’s to even better dividend months moving forward.
hey Paul
arg the fall of a king eh? stock price of aqn has recovered a bit already so hoping the same with vfc for you.
Microsoft is one of the stocks Im most confident in for the future, so Im glad i grew that one so much. Just like dividend investing – slowly but surely.
cheers Paul
Sweet 4 sources of income. I think the best one is the private investment. Congratulations on the total passive income.
thanks Vibrant