October 2022 Passive Income Update – Lower Dividends, Higher Passive Income
October 2022 Passive Income Update – Lower Dividends, Higher Passive Income
- 3 sources of passive Income
- $912.82 from dividends
- 35 stocks/units dripped in October
- Trailing 12 Month Portfolio Return +6.22%
S&P 500 12 Month Total Return -14.61% for October 2022
S&P/TSX Composite Index 12 Month -9.35% October 2022
Hey Hey Hey
The market decided to climb back up this month and then interest rates rose once again. The narrative hasn’t changed both Tiff and Powell have said they aren’t done raising interest rates in previous hikes. Unfortunately Tiff played his cards first hoping Powell would follow suit with a .5% raise and the US raised theirs .75% essentially devaluing our dollar. Inflation for Canadians should rise on this move alone as it now costs us more to buy stuff in usd.
While I have been a believer that they would hike rates until the end of December and then pause, I’m now kinda questioning that. Governments continue printing new money in the form of inflation relief, which ultimately fuels even more inflation… Cracks are starting to form. In my opinion we are in for some hard times in the coming months as I’ve mentioned in a previous post.
We did our last camping trip of the year at the beginning of the month. The weather held out for us and it was actually a perfect weekend. Got some great family pics and family time outdoors unplugged is always good!
I continued to step up our halloween game this year and found some more animatronics. Unfortunately we had less kids than we had last year but the place was a huge hit. Kids and adults both loved it and I really enjoyed seeing people on our cameras taking selfies etc with our decorations. Here’s hoping next year is bigger, you know what they say – If you build it they will come…. I have always loved halloween, so it feels good to be able to start setting up yearly haunts. =)
Other than that its been raking leaves and fighting the flu. Right now our whole family has had it but the kids are fine and back to school while me and the wife continue to feel like crap. fun fun. (edit as of posting Im better but our daughter spiked a fever again and wife is still sick… arg and schools are closed once again due to another strike – a yearly thing these days)
Oh and we booked a family trip to the Dominican in December. All inclusive. Will be great as this will actually be our daughters first flight/trip!
Alright, Let’s Get To Our October 2022 Passive Income
We had 1 Raise this month.
- Abbvie raised their dividend by 5% boosting our forward income by $19.60
Abbvie has treated us very well since we bought them around 70 bucks. Some people seem disappointment by the lower raise but I think its a good move as they navigate the humira issues.
Total Added Income from Dividend Raises in 2022 – $401.07
October 2022 Dividend Income
9 Companies paid us this month.
|Stocks||October 2021 Dividends||October 2022 Dividends|
|Transcontinental||27.68 (1 Drip)||sold|
|TD Bank||103.49 (1 Drip)||sold|
|Bank Of Nova Scotia||93.60 (1 Drip)||sold|
|Rit ETF||65.75 (3 Drips)||sold|
|Smart Centers||32.99 (1 Drip)||sold|
|Restaurant Brands||74.32||105.33 (1 Drip)|
|Cisco||51.06||53.20 (1 Drip)|
|Bell Canada||139.13 (2 Drips)||153.64 (2 Drips)|
|Aecon||0||114.52 (11 Drips)|
|Telus||83.16 (3 Drips)||136.46 (4 Drips)|
|Tc Energy||116.58 (1 Drip)||157.50 (2 Drips)|
|Algonquin Power||97.47 (5 Drips)||208.72 (14 Drips)|
35 stocks Dripped in October.
That’s a massive amount of dripped shares but both algonquin and aecon have plummeted this year, so its a good and bad thing. Ill happily take these cheaper drips though!
We see a slight dip in income yr over yr and this will actually get worse next quarter. I sold off all our financial stocks and reit’s as I said before I see bad times coming, especially in these sectors. I could be wrong though things dipped a bit and then came back up but a doubling of interest rates in like 6-8 months in one of the worlds biggest housing bubbles may eventually pop..
If your interested check out our Previous Dividend Income Reports.
Our Drips (Dividend Reinvestment Program) added $41.92 to our yearly forward dividend’s this month. A beautiful thing. =)
Private Investment Payment – $1000.00
1k a month, Straight to the heloc.
Solar Panel Income
In September (We always get paid a month later) our solar panel system generated 729 kWh. Since we bring in a fixed rate of 28.8 cents per kilowatt hour, Hydro One deposited $204.81 into our chequing account this month.
Last September the system generated $232.99 so we are quite a bit lower this month. Not bad considering the last couple months have been higher.
Total Income for 2022 – $2,102.38
System Installed January 2018
Total System Cost ——–$32,396.46
Total Income Received ——–$11,987.60
Amount to Break even —- $ -20,408.86
Total October 2022 Passive Income – $2,117.63
October 2021 Passive Income – $1,646.35
While the dividends are down the passive income is up. A growth rate of 28.62% very nice!
Totals For 2022
Dividends Year To Date Total – $9,182.5
Other Passive Income Year to date – $11,306.54
Total Passive Income for 2022 —– $20,489.04
Year End Goal – $25,000
Looks like we will fall short of our goal, but its all good. I set out a very lofty goal and we actually will be close to hitting it, that’s amazing.
October Stock Purchases
Ive said it before but I always planned on growing our tech positions when the market pulls back. This month we added to 2 of our holdings after their generous raises last month.
We added 6 more shares to our position at 154 and change. This purchase added $29.76
If I could only pick one stock to hold for the next 10 years, this would be it. I have always wanted to increase our position size with them and plan to have them in my top 3 before spring next year.. Tech is moving so fast and microsoft is everywhere. If (I hope so) the activision deal go’s through they will be an absolute powerhouse in the “metaverse”. I got a buddy who is big into tech healthcare and its amazing what is happening with the use of microsoft products and virtual reality.
They also tend to raise the dividend by 10% per year as well. We added 4 more shares this month at 233 per share. Adding 10.88 to our forward income.
I liked Microsoft at 233 and like it a lot more at 215, this is most likely my next buy as well. Will it break 200?
Financial Goals Update
- We continue our monthly donation to The Nature Conservancy of Canada of $85.
Increase Dividends by $4285.81 this year. (bringing our forward income from dividends to $13,000 a year)
Unfortunately I’m going to disregard this now. While we could of been really close to hitting this, things changed. Im not as bullish on the market and with interest rates doubling in 6 months (and still growing) I decided to pay off all our heloc which we used for investing. As long as the forward passive income is higher at yr end vs last yr, its all good!
Etf Monthly Minimum Purchase of $250
- This month we added 8 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.
October 2022 Passive Income Conclusion
Overall a good month. Halloween was a lot of fun and camping well that’s always a blast. Im glad to see the tech sector falling as its one sector of ours that needs some major pumping up. What sectors or positions have you been buying? Did you get alot of kids for halloween?
wish you all nothing but the best, cheers!
You make a life out of what you have, not what your missing – Kate Morton
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.
Great dividend income Rob. So after all, you decide to sell your RIT ETF REITs? Where did you reinvest it?
I sold alot of stuff to pay off our heloc which we used for investing.
I dunno if I will be buying any reits moving forward to be honest though. I don’t need the yield and there’s not much/no dividend growth.
Great dividend income! Even if dividends were lower, your passive income is moving in the right direction. Keep it up! 😀
Franco Nevada…. never heard of them before so I actually had to look that company up to see what it was. But you do like your metals so the holding makes sense.
The market is very interesting right now and there are some great deals to be had, MSFT is a great buy man. October was an insane month for DRIPs with the September decline. Think I hit 94 drips of AQN in October with their price tanking so I’m somewhat concerned they could actually stall their dividend increases, but hopefully not cut the dividend.
Agree with you on reits, overall seems like they’ve underperformed for quite a while, and I’ve debated unloading some of mine. After dumping all my XAW I added more BMO and TRP in October to replace that lost income, along with some additional shares of US tech stocks for options premium. Felt like a solid switch to me. Going to pick up some more Telus this coming week.
Thoughts on your solar power year over year comparison. You’ve had the system for 3 or 4+ years now, so why not compare your current monthly income to the historical average for that month since installation, instead of the previous year? That would give you a better baseline for comparison.
94 drips of algonquin?? wow Norm thats amazing man! I hear ya them and aecon make me question their dividends. More so aecon but they got lots of future projects…
Telus had a great quarter and makes me question my decision to sell them. I thought these interest rates would hurt telcos but i guess not atleast not yet. I may start rebuilding our position soon enough.
Good idea about solar and would be simple enough to do. Ill try to implement that.
cheers Norm keep it up
94 drips…… insane! =)
We just came back from DR a few weeks ago. Your kids gonna love it! Which resort you’re going to?
we are going to the royalton splash. Glad to hear you had a blast. All the best!