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January 2021 Income Report – $3,434 Total Income – Dividend Income 67% Increased from January 2020

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Hello everyone, welcome to our first income report for 2021.  January 2021 was our our busy month for our buying and selling.   

Our city has been locked down since December so the kids are schooling at home.  Nothing major happening in the city in January, but our favourite Leafs are doing well this early season.

Passive Income

For the month of January 2021, we have received $1,387.48 of dividend income and some income from writing options.  The total passive income for the month of January 2021 was $3,434.23 .  This passive income included both incomes from dividends and option calls.  

Dividend Income

mark, marker, hand

January was good month for dividend income.  The following companies have paid us in January 2021:

No Name Ticker Dividend Income Jan 2020 Dividend Income Jan 2021 Dripped
1
Algonquin Power & Utilities Corp.
AQN
$33.89
$175.18
7
2
The Bank of Nova Scotia
BNS
$135.90
$208.80
2
3
Brookfield Property Partners
BPY
$62.75
4
Cisco
CSCO
$25.28
5
Capital Power Corporation
CPX
$103.01
2
6
goeasy Ltd.
GSY
$6.82
$69.75
7
Iron Mountain Incorporated
IRM
$61.89
$68.65
2
8
Main Street Capital
MAIN
$26.43
$38.75
1
9
Northland Power Inc.
NPI
$14.40
10
New Residential Investment
NRZ
$62.00
6
11
Realty Income
O
$11.15
$34.94
12
Pepsi Co
PEP
$24.48
$31.70
13
Telus
T
$172.41
6
14
TD Bank
TD
$162.06
$249.64
3
15
TC Energy
TRP
$144.99
2
16
Vanguard FTSE Canadian Capped REIT Index ETF
VRE
$13.26
17
STAG Industrial
STAG
$12.29
18
Vanguard FTSE Canada All Cap Index ETF
VCN
$149.33
19
Vanguard S&P 500 Index ETF
VFV
$134.32

Total:

$826.59

$1,387.48

31

We received total of $1,387.48, an 67.30% increased from January, 2010 from 14 companies.   Out of $1,387.48 received, $1,151.44 is in CAD and $236.04 is in US dollar or 80 to 20 split.  For simplicity of this calculation, we are using 1:1 rate for the currency approach.   

By the end of 2021, our Projected Annual Dividend Income (PADI) was $16,919. Our goal for 2021 was able to receive $20,000 in the Project Annual Dividend Income. 

My top 3 dividends for January were TD, BNS and AQN.  They were combined for total of $633.62 or 45% of the dividend income this month.  Ideally, we wanted the top 3 companies of our monthly dividend no greater than 50% of the monthly dividend income because we wanted to  minimize the risk of dividend cut.  

Jan 2021 Dividend

Options Income

ball, round, globe

Selling covered calls  is perhaps the best options strategy for extra income while waiting for the stock to grow.  While selling put option is strategy for extra income designed to buy stocks at a lower cost. 

For our growth stocks in my portfolio, we decided to enhance my passive income with selling covered call/put options.  The following transaction were expired in the month of January 2020:

Date Transaction Expired Date Amount
1
18-Dec-2020
PUT FUBO35
15-Jan-2021
$1,028.02
2
31-Dec-2020
PUT FUBO35
15-Jan-2021
$949.02
3
31-Dec-2020
CALL SQ255
18-Dec-2020
$94.04

The total income for selling Call/Put option for the month of January 2021 was $2,071.08 US dollar compared to $1146.20 US from January 2020.   Our plan going forward is continue to sell Monthly covered call/ far out of the money Put for extra passive income.  Our strategy of selling options is using the short expiry time.  (i.e.  Monthly option)

Dividend Snowball Update

Dividend Snowball

Our Dividend Snowball Portfolio was able to accumulate more Dividends in January for growing to a bigger Dividend Snowball. The $3,458.56 total income that we received in January were used to reinvest in dividend growing companies to generate more dividends.

Our Dividend Snowball investing is relying on 3 things:

  • Dividend Growth
  • Reinvest Dividends
  • Additional Contribution

 

Passive Dividend Income Growth

In January 2021, our dividends increased 67.30% YoY compared to January 2020.  We had 1 dividend increases in January. Therefore the growth of the our dividend income depended on Dividend Reinvestment and Additional Contribution to purchase of new stocks.

Dividend Increases

January 2021, we have only 1 company increased the dividend. 

Ticker # of Shares Original Dividend Original Dividend % Change Dollar Change
CNR
100
$2.30
$2.46
7.0%
$16.00

The total Dividend increases were $16.00.  At 4% dividend rate, these increases were equivalent to additional $400 invested in our portfolio in order to generate $16 of dividend income.  We were happy with the increase. 

Month 2019 2020 2021 YoY%
Jan
$303.30
$829.32
$1,387.48
67.30%
Feb
$195.63
$409.79
Mar
$365.59
$878.85
April
$413.77
$947.88
May
$259.79
$483.04
Jun
$397.69
$1086.17
July
$611.83
$1074.04
Aug
$215.28
$539.82
Sep
$288.39
$1518.41
Oct
$896.64
$1271.16
Nov
$512.08
$652.66
Dec
$512.08
$2,076.88

Total

$4757.74

$11,768.02

$1,387.48

 Our current Projected Annual Dividend Income (PADI) is $16,919.   For the year 2021, we are planning to have $20,000 in the PADI.

Stock Transactions

sell, buy, trade

Details of the transactions for the month of January 2021 were posted in the post ‘January Buys/Sells‘. 

This month, we added $532.35 to our annual dividend from our buys/sells in January.

Dividend Reinvestment Plan (DRIP)

In January, we were able to drip 31  shares for the total of $977.54 of the dividend income.  We are enrolled in DRIP Plan whenever it is possible. Using DRIP Plan, we increased

Portfolio Update

By the end of December 2020, our portfolio was $497,278.  Our portfolio at the end of January 2021 was $542,925.  The total capital increase for the month of January 2021 was $45,646 or +9.18%.  Our biggest gain came from our Questrade Account (Growth Stocks portfolio)$19,458 or 15.36%.8

Below is the chart of all accounts from January 1, 2021 to January 31, 2021

January 2021

Summary

January was a good month for us.  We were able to generate total of $3,434.23 in passive income.  Our portfolio increased 9.18% to $542,925.

Our options were doing well for us.  We would like to continue to sell more options to supplement our income.

Our Dividend Snowball portfolio is progressing well for us.  We are happy with our buy/sell transactions in January.

How was your passive income in January? 

Let the Dividend Snowball rolling!!!

Thanks everyone for reading.  Feel free to leave comment below.

Thanks,

Sam8

Disclaimer

I am not a licensed investment Advisor or Tax professional; Therefore all content posted on this blog represents my personal views and opinions and should never be considered as professional advice.  This blog should be viewed for entertainment or educational purposes only. Not as recommendation to buy/sell certain stocks.  Please do your own research before buy/sell stocks.  

I am just sharing my journey of buying and holding certain stocks for my journey to financial freedom.  My thoughts, opinions and research are my own;therefore they should not be taken as a reason for you buying or selling certain stocks.

3 thoughts on “January 2021 Income Report – $3,434 Total Income – Dividend Income 67% Increased from January 2020”

  1. Joe
    Loved your update and congrats on a really solid month. I’m wanting to start options as well but struggling with a strategy. Have you written any blogs on your strategy?
    1. mydividendsnowball
      Hi Joe, I hav not written any blogs about writing options yet. My strategy is to make sure I am comfortable with a possibility of losing my shares with a big enough premium. If I like the company that much, I may buy back the call I wrote.

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