Hello everyone, welcome to our income report for May 2021. May 2021 was our lower month for dividend income.
Passive Income
For the month of May 2021, we have received $913.40 of dividend income and some income from writing options. The total passive income for the month of May 2021 was $1,231.02. This passive income included both incomes from dividends and option calls.
Dividend Income
May was slower month for dividend income. The following companies have paid us in May 2021:
| No | Name | Ticker | Dividend Income May 2020 | Dividend Income May 2021 | Dripped | |
|---|---|---|---|---|---|---|
|
1 |
Abbvie Inc. |
ABBV |
$139.30 |
$247.00 |
2 |
|
|
2 |
Apple Inc. |
AAPL |
$28.59 |
$36.16 |
|
|
|
3 |
Bank of Montreal |
BMO |
|
$254.40 |
2 |
|
|
4 |
Enghouse Systems Limited |
ENGH |
|
$26.56 |
|
|
|
5 |
Main Street Capital |
MAIN |
$42.70 |
$46.33 |
1 |
|
|
6 |
New Residential Investment |
NZL |
$20.97 |
|
|
|
|
7 |
Realty Income |
O |
$24.37 |
$41.83
|
|
|
|
8 |
Royal Bank of Canada |
RY |
$152.52 |
$258.12 |
2 |
|
|
9 |
Starbucks Corp. |
SBUX |
$27.69 |
|
|
|
|
10 |
Texas Instruments Inc. |
TXN |
$43.90 |
|
|
|
|
|
|
Total: |
$483.04 |
$913.40 |
7 |
New Residential Investment and Starbucks used to pay in May, but they had changed to pay their dividend in April and June. Also, we didn’t received the dividend for Texas Instruments because we sold this stock sometime at the end of last year.
We received total of $913.40 an 89.09% increased from May, 2010 from 7 companies. Out of $913.40 received, $542.08 is in CAD and $371.32 is in US dollar or 60 to 40 split. For simplicity of this calculation, we are using 1:1 rate for the currency approach.
By the end of May 2021, our Projected Annual Dividend Income (PADI) was $19,851. Our goal for 2021 was able to reach $20,000 in the Project Annual Dividend Income. We can reach this goal in June, we are going to increase our target to $22,000 by the end of 2021.
My top 3 dividends for May were RY, BMO and ABBV. They were combined for total of $759.52 or 83% 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.
Options Income
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 May 2021:
| Date | Transaction | Expired Date | Amount | |
|---|---|---|---|---|
|
1 |
18-May-2021
|
CALL SE 260 |
28-May-2021
|
$74.66
|
|
2 |
18-May-2021
|
CALL PLTR 23 |
28-May-2021
|
$48.83
|
|
3 |
24-May-2021 |
CALL SQ 220 |
28-May-2021 |
$59.21 |
|
4 |
26-May-2021 |
PUT NIO 37 |
28-May-2021 |
C$134.92 |
The total income for selling Call/Put option for the month of May 2021 was $317.62 US dollar. 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
Our Dividend Snowball Portfolio was able to accumulate more Dividends in May for growing to a bigger Dividend Snowball. The $1,231.02 total income that we received in May 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
In May 2021, our dividends increased 89.09% YoY compared to May 2020. We had 2 dividend increases in May. Therefore the growth of the our dividend income depended on Dividend Reinvestment and Additional Contribution to purchase of new stocks.
Dividend Increases
In May 2021, we have only 2 companies increased the dividend.
| Ticker | # of Shares | Original Dividend | Increased Dividend | % Change | Dollar Change |
|---|---|---|---|---|---|
|
AQN |
1655 |
$0.6204 |
$0.6824 |
9.99% |
$102.61 |
|
ABR |
458 |
$1.32 |
$1.36 |
3.03%
|
$18.32
|
The total Dividend increases were $120.93. At 3.6% dividend rate for my dividend portfolio , these increases were equivalent to additional $3,300 invested in our portfolio in order to generate $120 of dividend income. We were happy with the dividend increases for the month of May.
| Month | 2019 | 2020 | 2021 | YoY% |
|---|---|---|---|---|
|
Jan |
$303.30 |
$829.32 |
$1,387.48 |
67.30% |
|
Feb |
$195.63 |
$409.79 |
$944.54 |
130.49% |
|
Mar |
$365.59 |
$878.85 |
$1,661.87 |
89.10% |
|
April |
$413.77 |
$947.88 |
$1,616.23 |
70.62% |
|
May |
$259.79 |
$483.04 |
$913.40 |
89.09% |
|
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 |
$6,524.72 |
Our current Projected Annual Dividend Income (PADI) is $19,851. For the year 2021, we are planning to increase our Dividend Income to $22,000 in the PADI.
This month, the total amount $25,472.93 were used to purchase dividend growth stocks to increase our annual dividend come by $1,150.19. For completion of our portfolio, please click the link to our Dividend Growth Portfolio.
See the list below for all Dividend Growth Stock transactions were made in May 2021:
| Date | Number of Shares | Ticker | Amount | Dividend |
|---|---|---|---|---|
|
May 05/2021 |
Buy 21 |
TSM |
$2445.78 |
$36.75 |
|
May 13/2021 |
Buy 197 |
ABR |
$3368.15 |
$267.92 |
|
May 18/2021 |
Buy 300 |
TSE:AQN |
$5,582.00 |
$204.72 |
|
May 18/2021 |
Buy 100 |
TSE:T |
$2,651.00 |
$126.00 |
|
May 21/2021 |
Buy 100 |
TSE:ENB |
$4,666.00 |
$316.00 |
|
May 27/2021 |
Buy 70 |
TSE:NA |
$6,760.09 |
$198.80 |
Dividend Reinvestment Plan (DRIP)
In May, we were able to drip 7 shares for the total of $770.80 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 April 2021, our portfolio was $573,144. Our portfolio at the end of May 2021 was $571,780. The total capital decrease for the month of May 2021 was –$1,334 or -0.23%. The main reason for the small decrease of our portfolio because of the correction in some growth stocks in May.
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Summary
May was a slow month for us. We were able to generate total of $1,231.02 in passive income. Our portfolio decreased 0.23% to $571,780.
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 May. Our dividend income almost reaches our $20,000 goal for 2021.
How was your passive income in May?
Let the Dividend Snowball rolling!!!
Thanks everyone for reading. Feel free to leave comment below.
Thanks,
Sam
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.
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