We can’t believe that August has gone. September is here and the kids are getting ready to go back to school. This summer would be the most memorial one because we did take any summer vacation. Our tradition summer cruise has been postponed till the government allowing cruises to sail again.
August started well for us with a long weekend Civic holiday. We ate very well in August. Here are a few photo shots we took in August…
Passive Dividend Income
For the month of August 2020, we have received $539.82 of dividend income and some income from writing options. The total passive income for the month of August 2020 was $1329.02 . This passive income included both incomes from dividends and option calls.
Dividend Income
August was our slow month for dividend. The following companies have paid us in August 2020:
| Company | Amount | Dripped Share | |
|---|---|---|---|
|
1 |
ABBV |
$101.48 |
1 |
|
2 |
AAPL |
$26.24 |
|
|
3 |
BEP |
$46.45 |
|
|
4 |
BMO |
$106 |
1 |
|
5 |
MAIN |
$37.72 |
1 |
|
6 |
O |
$21.48 |
|
|
7 |
RY |
$180.36 |
1 |
|
8 |
SBUX |
$20.09 |
|
We have received total of $539.82, an 150% increase from August, 2019. This is significant increase from 2019 because of the new postions in BMO and RY in 2020. Out of $539.82 received, $332.81 is in CAD and $207.01 is in US dollar or 60 to 40 split. For simplicity of this calculation, we are using 1:1 rate for the currency approach. Year to Date, we have received total of $6248.91 in Dividend Income. Please check the Dividend Income 2020 for details.
My top 3 dividends for August were RY, BMO and ABBV. They were combined for total of $387.84 or 72% of the dividend income this month. Therefore, I will add more money to Realty Income (O) and Starbuck (SBUX) or other stocks to diversity our income.
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, I decided to enhance my passive income with selling covered call/put options. The following transaction were made in the month of August 2020:
| Date | Transaction | Expired Date | Amount | |
|---|---|---|---|---|
|
1 |
31-Jul-2020
|
Put LMND 50 |
21-Aug -2020
|
$199.04
|
|
2 |
08-Aug-2020
|
Call LVGO 170 |
07-Aug-2020
|
$289.04
|
|
3 |
21-Aug-2020
|
Call NET 42
|
21-Aug-2020
|
$98.04 |
|
4 |
21-Aug-2020 |
Call LVGO 145 |
21-Aug-2020 |
$104.04 |
|
5 |
26-Aug-2020 |
Call LVGO 140
|
28-Aug-2020
|
$99.04 |
The total passive income for selling Call/Put option for the month of August 2020 is $789.20 US dollar compared to 230.10 US from July 2020. Our plan going forward is continue to sell weekly 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. Weekly option)
Dividend Snowball Update
Our Dividend Snowball Portfolio was able to accumulate more Dividends in July for growing to a bigger Dividend Snowball. The $1329 passive dividend income that we received in August 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 August 2020, our dividends increased 150% YoY compared to August 2019. We have no dividend increase this month. Therefore the growth of the our dividend income came from the purchase of new stocks.
| Month | 2019 | 2020 | YoY% |
|---|---|---|---|
|
Jan |
$303.30 |
$829.32 |
171.64% |
|
Feb |
$195.63 |
$409.79 |
109.47% |
|
Mar |
$365.59 |
$878.85 |
140.39% |
|
April |
$413.77 |
$947.88 |
129.08% |
|
May |
$259.79 |
$483.04 |
85.93% |
|
Jun |
$397.69 |
$1086.17 |
173.12% |
|
July |
$611.83 |
$1074.04 |
75.55% |
|
Aug |
$215.28 |
$539.82 |
150% |
|
Sep |
$288.39 |
|
|
|
Oct |
$896.64 |
|
|
|
Nov |
$512.08 |
|
|
|
Dec |
$512.08 |
|
|
|
Total |
$4757.74 |
$6248.91 |
31.34% |
So far, our YTD Dividend Income is already over 31% the entire 2019 year. There are 4 more months till the end of 2020, hopefully our dividend income will be more than $10,000 in 2020
Details of the transactions for the month of August 2020 were posted in the post ‘August Buys‘.
The following stocks have been added to our portfolio in August:
| Date | Ticker | Transaction | Amount | Dividend | |
|---|---|---|---|---|---|
|
1 |
Aug 04, 2020 |
TSE:WCN |
Buy 22 |
$2992.88 |
$21.78 |
|
2 |
Augt 04, 2020 |
TSE:BNS |
Buy 28 |
$1563.99 |
$100.80 |
|
3 |
Aug 04, 2020 |
TSE:SHOP |
Buy 1 |
$1434.99 |
|
|
4 |
Aug 13, 2020 |
PEP |
Buy 11 |
$1528.49 |
$44.88 |
|
5 |
Aug 13, 2020 |
JMIA |
Buy 500 |
$8519.85 |
|
|
6 |
Aug 13, 2020 |
NET |
BUY 100 |
$3684.95 |
|
|
7 |
Aug 17, 2020 |
JMIA |
Buy 100 |
$1230.00 |
|
|
8 |
Aug 19, 2020 |
TSE:WELL |
Buy 600 |
$3108.00 |
|
|
9 |
Aug 26, 2020 |
RKT |
Buy 100 |
$2754.96 |
|
The total 9 transactions were made for the month of August. We have deployed $26,818 for these transactions. Only $6085 .36 were used to purchase dividend stocks to increase our annual dividend come by $167. 46. The rest of the money were deployed to buy growth stocks.
Dividend Reinvestment Plan (DRIP)
In August, we were able to drip 4 shares for the total of $308.14 of the dividend income. We are enrolled in DRIP Plan whenever it is possible. Using DRIP Plan, we increased
Summary
August was a good month for us. We were able to generate total of $1329 in passive income. Our Dividend Snowball already has surpassed the amount we collected in the whole 2019 year.
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 transactions in August.
How was your passive income in August?
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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