We can’t believe that we are one month away from the end of the year. We are excited to welcome December because Christmas is around a corner. Also, December will be our best month for dividend income.
In November, we had the first snowfall, Our city has been locked down because of the second wave for Covid-19. The malls were closed in our city on Black Friday therefore there was no shopping for us. Here are a few photo shots we took in November..
Sample of foods we ate for my wife’s birthday November 2020..
Passive Income
For the month of November 2020, we have received $652.66 of dividend income and some income from writing options. The total passive income for the month of October 2020 was $2968.39 . This passive income included both incomes from dividends and option calls.
Dividend Income
November was smallest month for our dividend income with over $1,000 a month in dividends. The following companies have paid us in November 2020:
| No | Name | Ticker | Dividend Income | Dripped |
|---|---|---|---|---|
|
1 |
Abbvie |
ABBV |
$193.52 |
1 |
|
2 |
Apple |
APPL |
$26.24 |
|
|
3 |
Bank of Montreal. |
BMO |
$107.60 |
1 |
|
4 |
Main Street Capital |
MAIN |
$38.34 |
1 |
|
5 |
Realty Income |
O |
$30.42 |
|
|
6 |
Royal Bank |
RY |
$216.00 |
1 |
|
7 |
Starbucks |
SBUX |
$24.19 |
|
|
8 |
Waste Connections Inc |
WCN |
$8.95 |
|
|
|
|
Total: |
$652.66 |
4 |
We received total of $626.66, an 120% increased from November, 2019. Out of $626.66 received, $313.95 is in CAD and $312.71 is in US dollar or 50 to 50 split. For simplicity of this calculation, we are using 1:1 rate for the currency approach. Year to Date, we have received total of $9691.14 in Dividend Income. This is 103% more than the dividends we received for the year 2019. Please check the Dividend Income 2020 for details. Our goal for 2020 is $10,000 dividend income. There are 1 months till the year end, We are confident that our goal will exceed our goal.
My top 3 dividends for October were RY, ABBV and BMO. They were combined for total of $517.12 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. Therefore, we will add more money to Realty Income (O) , Apple (AAPL) and Starbucks (SBUX) or other dividend 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, we decided to enhance my passive income with selling covered call/put options. The following transaction were made in the month of October 2020:
| Date | Transaction | Expired Date | Amount | |
|---|---|---|---|---|
|
1 |
18-Aug-2020
|
Put JMIA6 |
20-Nov-2020
|
$379.44
|
|
2 |
13-Oct-2020
|
CALL DKNG65 |
06-Nov-2020
|
$104.05
|
|
3 |
13-Oct-2020 |
CALL DKNG65 |
06-Nov-2020 |
$198.05 |
|
4 |
06-Nov-2020 |
PUT LMND60
|
13-Nov-2020 |
$379.04 |
|
5 |
06-Nov-2020
|
CALL SQ200
|
06-Nov-2020
|
$89.04 |
|
6 |
10-Nov-2020 |
PUT NET60
|
13-Nov-2020 |
$139.05 |
|
7 |
20-Nov-2020 |
CALL SQ200
|
20-Nov-2020 |
$69.04 |
The total income for selling Call/Put option for the month of November 2020 was $1357.35 US dollar compared to 1697.23 US from October 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
Our Dividend Snowball Portfolio was able to accumulate more Dividends in November for growing to a bigger Dividend Snowball. The $2010.01 total income that we received in November were used to reinvest in dividend growing companies to generate more dividends.0
Our Dividend Snowball investing is relying on 3 things:
- Dividend Growth
- Reinvest Dividends
- Additional Contribution
In November 2020, our dividends increased 120% YoY compared to November 2019. We had 1 dividend increase in November. Therefore the growth of the our dividend income depended on Dividend Reinvestment and Additional Contribution to purchase of new stocks.
Dividend Increases
November 2020, we have only 1 company increased the dividend.
| Ticker | # of Shares | Original Dividend | Original Dividend | % Change | Dollar Change |
|---|---|---|---|---|---|
|
TSE:T |
554 |
$1.16 |
$1.24 |
6.89% |
$44.32 |
The total Dividend increases were $44.32. At 4% dividend rate, these increases were equivalent to additional $1,100 invested in our portfolio in order to generate $44 of dividend income. We were happy with the increase.
| 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 |
$1518.41 |
426.51% |
|
Oct |
$896.64 |
$1271.16 |
41.77% |
|
Nov |
$512.08 |
$652.66 |
120.68% |
|
Dec |
$512.08 |
|
|
|
Total |
$4757.74 |
$9691.14 |
103.69% |
So far, our YTD Dividend Income is already over 103.69% of the entire 2019 year. Our Projected Annual Dividend Income (PADI) is $15,246. We have reached our milestone in the PADI. There are 1 more month till the end of 2020. Hopefully, we are positive that we would reach our goal of dividend income $10,000 in 2020
Details of the transactions for the month of November 2020 were posted in the post ‘November Buys/Sells‘.
This month, the total amount $18,744 were used to purchase dividend stocks to increase our annual dividend come by $690.60.
Dividend Reinvestment Plan (DRIP)
In November, we were able to drip 4 shares for the total of $331.72 of the dividend income. We are enrolled in DRIP Plan whenever it is possible. Using DRIP Plan, we increased
Portfolio Update
In November, we had a best month ever. Our portfolio was up $84,110 or 23% for the month of November. Our biggest gain came from our Questrade Account (81.15%) for the month of November 2020. Most of gain came from the our growth stocks.
Summary
November was a good month for us. We were able to generate total of $2010.01 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 buy/sell transactions in November.
How was your passive income in November?
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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