Passive Income Update – February 2020. Free $$$
Passive Income Update – February 2020. Free $$$
March already? Time for another Passive Income Update
The dividends and income continues to come in. People are spooked about the market and the rise of covid 19. Hey I am a little too, this thing is spreading fast. Media is all over it, spreading the doom and gloom. Get Your Bunkers no one is safe. But then you read some other articles stating how overblown things are.
Personally I have never really experienced anything like this, but it reminds me a lot like the sars epidemic. People were freaking out – so worried, and then they had all these sars stock concerts. I went to the Toronto one when I was like 19. Took a limo there with about 15 of us. A great time with some fantastic bands. Acdc, Rolling stones, Rush, The tea party, Justin Timberlake, Jim Belushi and Dan Akroyd, bunch of others and the incredible Sam Roberts Band……. Yeah it was big time! Best Concert I have ever been too.
The fear factor can change pretty quickly. Currently we are high up on that bar. After these concerts no one cared about sars, just remembered the good times.
So what am I doing?
I’m just sitting here, sticking to the plan. Buying like I normally do (if not more) and focusing on increasing that passive income! Did I like disney at 130? Yup. Do I like it more cheaper, of course. This is where the mental game comes into play though. The hardest part of investing in my opinion.
It’s going down for a reason, parks and movies are getting hurt short term. Do I buy some now and then they close another park and the stock drops again? Covid is spreading like mad people say, they will be closing sooo many parks. What about next quarters earnings? Its hard to buy at these prices with that kind of narrative. Even I find myself kind of trying to time the market.
With all these fears, would I of been better off selling the portfolio at the start of the week last week and buying back in? The math seems like that, but would you buy back in when everyone continues to say the sky is falling? I still have some cash to deploy and I find myself debating to buy now or end of the week etc etc
Like I said, I’ll continue to keep my portfolio invested and enjoy those cheaper drips in the meantime. This is the main benefit of having the drips right? Reinvesting those dividends no matter the market sentiment. It takes the emotions right out of it.
Alright that concludes my thoughts at the moment on this.
Life
Life continues to be great. Our son turned 7 at the beginning of the month and we setup a lazer tag/ arcade birthday for him. There was about 20 kids including all the cousins, so always crazy! Either way I went full force dad and destroyed them in lazer tag. They didn’t stand a chance. Kids were crying everywhere, your dad’s too good! He must be cheating…… Kid’s need to learn how to lose these days. haha.
The ice rink was nice for most of the month so we continued to tear that up and hosted a cousins day to skate and play some hockey. Good times.
On Friday our son (along with our niece and nephew) went with my dad and stepmom to Florida for 9 days. They will be doing the Disney thing for 5 days and poolside for the other 4. So far they are having a blast. I miss him, but at the same time things are sooo much simpler with just one kid. Our daughter probably enjoys the one on one time and we enjoy the quieter household.
I look forward to hearing about how Disney was and loading up on more shares… Let’s get to the money!
Raises or Cuts
Que Oprah Winfrey – You want a raise? You get a raise, you get a raise, and you get a raise! We got 7 raises in our portfolio last month. Fantastic stuff and may be a record for just one month. Clearly focusing more on dividend growth companies, pays off.
- 3m bumped theirs 2% which adds – 1.44$ usd
- Brookfield Property came through with the weakest raise ever haha increasing theirs .76%. This adds 2.58 usd
- Bell Canada’s raise of 5.05% adds – $13.92
- Restaurant Brands International – raise of 4% adds 3.68 usd
- Cisco pumped theirs 2.9% which adds 5.36 usd
- Td had the highest one this month of 6.8% adding 25.00 to that income!
- Transcontinental recent raise of 2.3% adds $2.37
In total these 7 raises boosted that income by $54.35 – Gotta like that.
Total Added Income from Dividend Raises in 2020 – $90.05
Dividend Income
11 Companies paid us this month.
| Stocks | Feb 2019 Income | Feb 2020 Income |
|---|---|---|
| Altagas | 2.40 | 2.40 |
| Sienna Senior | 2.45 | sold |
| CVS Healthcare - USD | 15.50 | 15.50 |
| BMO | 17.00 | 18.02 |
| Proctor and Gamble - USD | 17.21 | 17.90 |
| National Bank of Canada | 23.40 | 25.56 |
| Abbvie - USD | 36.38 | 57.82 |
| Dream Global Reit | 20.33 (One Drip) | bought out |
| Shaw | 31.21 (One Drip) | sold |
| Extendicare | 17.16 (2 Drips) | 18.08 (2 Drips) |
| Riocan | 28.44 (One Drip) | 29.88 (1 Drip) |
| Inter Pipeline | 20.38 | 28.93 (1 Drip) |
| Emera | 54.64 (One Drip) | 59.41 (1 Drip) |
| General Mills - USD | 64.19 (1 Drip) | 66.15 (1 Drip) |
| Totals | 350.69 | 339.65 |
6 stocks Dripped in January.
Another negative year over year report. Kinda depressing but Dream Global got bought out and I sold some stocks. The money was deployed elsewhere. Without those moves it would be up. These months continue to be our lowest, but I’m not focusing on pumping up a off month just because.
If your interested check out our Previous Dividend Income Reports.
Our Drips (Dividend Reinvestment Program) added $8.52 to our yearly forward dividend’s this month.
Trailing 12 Month Return
Our trailing 12 month return dropped pretty hard this month. That’s to be expected though.
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 January (We always get paid a month later) our solar panel system generated 140 kWh. Since we bring in a fixed rate of 28.8 cents per kilowatt hour, Hydro One deposited $40.32 into our chequing account this month.
Last January the system generated $65.66, but 2018 brought in 48.96. This our our lowest income generated in January yet. Unfortunately weather is a big factor though. Snow can easily build up on the panels and diminish the power produced.
Total Income for 2020 – $77.18
System Installed January 2018
Total System Cost ——–$32,396.46
Total Income Received ——–$5046.59
_____________________________________________
Amount to Break even —- $-27,349.87
Total February 2020 Passive Income – $ 879.97
February 2019 Passive Income – $916.35
Total Passive Income Increase over last year. – 3.97
A negative growth rate. Horrible stuff. Solar was lower as well as dividends. I’m sure this wont continue though.
Totals For 2020
Dividends Year To Date Total – $889.33
Other Passive Income Year to date – $1476.1
Total Passive Income for 2020 —– $2,365.43
Year End Goal – $17,200 ——– %13.75
Disappointing to see a negative growth rate overall, but with new capital and all these raises we should be back to growth in no time.
February 2020 Purchases
Before the market pulled back IBM got some good news announcing a new ceo. With the news we decided to grow our current position in them by 10 shares. You can read my thoughts on this here. The added shares added $68.40 usd to our dividend portfolio.
I decided to get rid of cvs for its lack of dividend growth. We added new capital as well and started a position in jnj and boosted our position in Abbvie. Keeping it all in the healthcare sector. Overall these moves increased our forward income by $86.52 usd. Read that article here.
Then the market started trending down. I added 10 more shares to another dividend king, 3m. Love the company and it set a new 52 week low at the time of purchase. We also added 10 more shares of xaw etf. These new shares bumps those dividends by another $58.80 usd. Feel Free to read about that purchase here.
Overall all these purchases adds $213.72 usd to that yearly income and strengthens the portfolio with solid dividend growth stocks.
Goals Update
Read 3 Books I normally Wouldn’t Consider
- I started reading Why we sleep by Matthew Walker this month. What a fantastic book and really makes you think about how important sleep is for us. Then I got a notification a library book I have been on the wait list for came in so had to start reading that..
Go 3 Times and Pick Up Garbage
- Last year picking up garbage was one of my goals. We did it but didn’t go out of our way to drive somewhere. This year I want to make 3 trips to do just that. The ground is covered in snow, so that ain’t happening at the moment.
Charities
- Our goal for 2020 was to give more to charities. This month I called The Nature Conservancy of Canada and bumped our monthly giving from $50 a month up to $75. Nature needs us.
Increase Dividends by $1,713.42 this year. (bringing our forward income from dividends to $7,500 a year)
- With New Purchases, Drips and Dividend Raises this month we added $276.59 to our dividend Portfolio. Total increased so far in 2020 is $395.94. 23.10% of our goal.
Etf Monthly Purchase of $250
- We added 10 more shares of xaw etf this month for roughly 280 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.
180 Pounds
- I started working out again. The first time I did a small workout with generally the same weights I used a year ago. I absolutely destroyed my upper body and couldn’t work out for roughly a week after that. Since then I have been working out 3-4 times a week. Definitely getting bigger, looking better, feeling good and standing straighter. It feels good to not have those twig like arms any more. Unfortunately my weight hasn’t dropped much as I’m not doing much cardio. I’m still around the 204 mark. Muscle weighs more than fat though and it seems like my handles have decreased slightly. haha
Diet
- We have been eating better for sure and rocking the crock pot. Always love these meals, so simple and yet they make the house smell so good. The first half of the month was bad though, we had a dq ice cream log cake for my sons bday at our house for his birthday. Then we bought a full dq cake for the kids party, half of it was left and I’m not one to waste food. Pretty safe to say I got my calories for the month in the first half.. haha The second half I have generally cut late night snacks.
Conclusion
A negative year over year passive income month and a red portfolio. It wasn’t a great one from a net worth point of view. The income keeps coming in though and good times continue to be had. Make sure your enjoying life. Heck if this really is the end of the world as the market seems to think, you better be!
Anyways that concludes our February 2020 Passive Income update, Have a great March everyone. Also thanks and welcome to all the new followers the last couple months. Seeing the growth in that area really makes me feel good and keeps me motivated to keep writing. I don’t create these posts to brag, but to encourage others that it indeed can be done. If we can turn things around, You can do it as well. Slowly but surely.
Cheers!
What are your thoughts on the virus? Did you sell everything? or Are you doing the same thing dollar cost averaging? I Always Appreciate Your Comments.
“Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment or the smallest act of caring, all of which have the potential to turn a life around ” – Leo Buscaglia
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.
Hey Rob,
In my opinion, I think it’s important to separate the emotions from investing. With the spread of the virus, it is very concerning, no doubt. However, this isn’t changing the way I invest. As I wrote about in my Feb update on my blog, I will continue to focus on maintaining my asset allocation consistently as I have since Day 1.
How the market reacts to news, I can’t control. However, I can control how and when I invest, so I tend to focus on that. I let my financial model sort out my allocation based on market movements and invest accordingly. Keeping it simple.
– DGX Capital
hey dgx
No question your right. Now I don’t necessarily think its changing the way I invest. Ill continue to buy every month but at the moment I will be keep a little cash to the sideline. Essentially the fundamentals seem to be getting worse for the market then better. Of course some sectors can benefit ie Utilitys, telcos and real estate.
The feds are doing what they can to prop the market but I wonder how long that will hold. Here in Canada housing and consumer debts are massive issues, yet we just lowered interest rates .5% Propping one thing up while making the other a lot more dangerous.
I’m still fully invested and continuing to invest but its getting hard to ignore what is going on atm.
cheers dgx
Hey! Looks like a solid month report with those divvy increases, inspiring stuff – keep it up man. Like those mmm and ibm pickups, I should add to those if prices can stay down.
Cheers-
Divcome
hey div
Thanks, always unforetunate to be lower yr over yr but quarter over quarter should show some solid growth. 3m was a steal imo. See what the market decides to do this month. Sure will be interesting.
cheers Div
There are highs and there are lows spread across year at times. Either way, congrats on a very impressive month! Nice series of dividend increases too! Keep it up! 🙂
Thanks Dynasty
If we look quarter over quarter im sure there has got to be some growth there! haha
cheers man
Congrats on the 3 US stock purchases and XAW ETF purchase.
I tried to make some money trading Aurora Cannibis stock in TFSA. First time made a small profit but the second time I sold at a lost to take advantage of falling prices. This led to purchasing more TD in my TFSA the day of earnings was released. Didn’t have any other money to invest to make any other purchases.
Since your fan of CN Rail, I saw on average 2 trains every half our either entering or leaving Edmonton on the east side this past Tuesday. They were long trains. They were distracting me while I was working LOL.
hey Ip
I love cnr, I have been tempted to buy more at these prices. Time will tell the market has some nice options out there at the moment.
Td is a solid pickup, one of my largest holdings as well. The banks seem like a steal, but this lower interest environment should hurt even more. Well expect for the mortgage demands. Ahhhh our housing problem keeps growing….
cheers man always appreciate the comments
PCI,
There is so much great stuff packed into this monthly summary. First – the dividend income is looking great, even though there was a decrease. Acquisitions are tough for that reason, it can be hard to find the right combination of yield to reinvest in. Second – you know we love that solar income that you receive. I wish I could find a way to make that work here. It would be awesome! Third – the purchases were excellent. Way to push yourself towards your dividend income goal and take advantage of some discounts. I agree, stay consistent and stick to your investing principles, in good times or bad. That will help drive you towards successful purchases. Lastly, love the progress on your goals. MY wife and I have been making crock pot recipes once a week. This week was a delicious turkey chili. It was cheap, created a ton of meals for us, and delicious. Like you said, it also makes your house smell great. The extra charity donations are icing on the cake.
Keep pushing and hopefully you’ll have a strong March.
Bert
haha love it Bert
Chili is such a good meal. Healthy and like you said it lasts for awhile. Solars nice but clearly in the winter it could be better =)
The lack of year over year growth sucks but thats to be expected in the coming months all those sales will be removed from those charts and we should be back to growth.
cheers Bert
PCI –
Nice job and don’t sweat the 4% decline, you’ll be back in action this month, I have a feeling.
Continue investing and keep taking in those dividend increases, the best part! Sun will come out soon for that solar…
-Lanny
hey Lanny
exactly, it was soooo nice yesterday but then today its a snow storm again. arg! If we keep throwing money into the portfolio surely we will be back to gains.
cheers man
Do you have an instant pot or a crock pot? The instant pot is my best friend especially with two kids. We have two now. One is kept clean and used for rice, got rid of the chipped teflon rice cooker.
Great update, keep up the great job with both life and your investment portfolio!
hey gym
Thanks, yeah we got everything. Wifes got to make sure all our cupboards are full of all that stuff. Got to love when there is no room for actual food!
Rice cookers are the best and definitely gets its use here. The instant pot we used to use more but since its the biggest when we do use it theres food for days.
haha cheers gym =)
Hi Rob. Nice! Looks like you added about $275 in forward dividend income this month thanks to reinvestment, raises and capital investment. That’s the way to do it.
Sounds like the household is very busy these days. How’d you find the time to pump out such a detailed post? 😃
hey Paul
Thanks. Haha it is a long one eh? Sometimes I spit fire. Plus our son away on vacation makes things quite a bit easier!
cheers
Hey Rob,
Nice perspective on the Sars comparison. I like that you’re sticking to the plan. And nice job on your dividend income. I missed YoY growth in January and likely will miss a few more months this year. But as long as the overall income is increasing, it’s alright for the month to month income to fluctuate. Looking forward to more of your 2020 income updates!
hey Graham
Thanks man, hey it could be a whole lot worse than sars. But who really knows at the moment… Yeah just got to stick to the plan and focus on growing those dividends. Long term I’m sure prices will follow.
Its unfortunate to be down yr over yr but the growth is there, just in other months. haha
cheers man!
Your experience is inspiring! Really looks like a solid monthly report with these increases. I love investing in passive income because they have more advantages than disadvantages. Dividends are cool.
hey Victoria
Thanks, yeah got to love when you get that many dividend raises in a month. Passive income is the best kind of income!
all the best
cheers