Hello everyone, welcome to MydividendSnowBall’s income report for August 2021. August 2021 was our lower month for dividend income. However, we were able to add more income and reached our goal for our Projected Annual Dividend Income.
Passive Income
For the month of August 2021, we have received $1,675.49 of dividend income and $573.78 income from writing options. The total passive income for the month of August 2021 was $2,249.27. This passive income included both incomes from dividends and option calls.
Dividend Income
There were 11 companies have paid us in August 2021:
| No | Name | Ticker | Dividend Income Aug 2020 | Dividend Income Aug 2021 | Dripped | |
|---|---|---|---|---|---|---|
|
1 |
Abbvie Inc. |
ABBV |
$101.48 |
$262.60 |
2 |
|
|
2 |
Arbor Realty Trust |
ABR |
|
$243.60 |
13 |
|
|
3 |
Apple Inc. |
AAPL |
$26.24 |
$39.16 |
|
|
|
4 |
Bank of Montreal |
BMO |
$106.00 |
$436.72 |
|
|
|
5 |
BlackRock Science and Technology Trust |
BST |
|
$58.31 |
1 |
|
|
6 |
BlackRock Science and Technology Trust II |
BSTZ |
|
$70.97 |
1 |
|
|
7 |
Main Street Capital |
MAIN |
$37.72 |
$46.95 |
1 |
|
|
8 |
National Bank of Canada |
NA |
|
$120.70 |
1 |
|
|
9 |
Pembina Pipeline Corporation |
PPL |
|
$90.30 |
1 |
|
|
10 |
Realty Income |
O |
$21.48 |
|
|
|
|
11 |
Royal Bank of Canada |
RY |
$180.36 |
$260.28 |
1 |
|
|
12 |
Starbucks Corp. |
SBUX |
$20..09 |
$45.90 |
|
|
|
|
|
Total: |
$539.82 |
$1,675.49 |
22 |
Arbor Realty Trust(ABR) used to pay in the first of September, but they had changed to pay their dividend in August 31. Also, we didn’t received the dividend for Realty Income because we sold this stock recently. There were 4 new dividend companies paid us in August: BlackRock Science and Technology Trust (BST), BlackRock Science and Technology Trust II (BSTZ), National Bank of Canada (NA) and Pembina Pipeline Corporation (PPL). BST, BSTZ and PPL are paying their dividend monthly.
We received total of $1,675.49 an 210.39% increased from August, 2010 from 11 companies. Out of $1,675.49 received, $908.00 is in CAD and $767.49 is in US dollar or 54 to 46 split. For simplicity of this calculation, we are using 1:1 rate for the currency approach.
My top 3 dividends for August were RY, BMO and ABBV. They were combined for total of $959.60 or 57% 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. Interactive Broker didn’t drip the dividend for BMO. Instead of the automatic drip, we bought more shares of BMO.
By the end of August 2021, our Projected Annual Dividend Income (PADI) was $30,412 or monthly $2,534. Our goal for 2021 was able to reach $30,000 in the Project Annual Dividend Income and we’ve reached this goal in August 2021. Again, we are going to increase our dividend income target to $32,000 by the end of 2021.
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 | Exercised | |
|---|---|---|---|---|---|
|
1 |
05-Aug-2021
|
CALL NVDA 210 |
06-Aug-2021
|
$48.94
|
N |
|
2 |
05-Aug-2021
|
CALL SQ 300 |
06-Aug-2021
|
$59.24
|
N |
|
3 |
05-Aug-2021 |
CALL SE 315 |
06-Aug-2021 |
$112.24 |
N |
|
4 |
09-Aug-2021 |
CALL SQ 300 |
13-Aug-2021 |
$59.24 |
N |
|
5 |
16-Aug-2021 |
CALL NVDA 220 |
20-Aug-2021 |
$48.94 |
N |
|
6 |
16-Aug-2021 |
PUT RVLV 60 |
20-Aug-2021 |
$158.94 |
Y |
|
7 |
18-Aug-2021 |
CALL SE 330 |
20-Aug-2021 |
$86.24 |
N |
The total income for selling Call/Put option for the month of Aug 2021 was $573.78 US dollar compared to $$799.69 US from in July 2021. The PUT RVLV 60 got exercised, however we were able to sell RVLV more than the amount we paid for exercised amount. 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 August for growing to a bigger Dividend Snowball. The $2,249.27 total 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 2021, our dividends increased 210.38% YoY compared to August 2020. The main reason the the increases was our new buys in PPL, NA, BST and BTSZ. In addition to the new buys, we had 3 dividend increases for the month of August. Therefore, the growth of the our dividend income depended on Dividend Reinvestment, Dividend Increase and purchase of new stocks.
Dividend Increases
In August 2021, we have only 3 companies increased the dividend.
| Ticker | # of Shares | Original Dividend | Increased Dividend | % Change | Dollar Change |
|---|---|---|---|---|---|
|
TSM |
59 |
$1.7824 |
$1.9832 |
11.27% |
$11.85 |
|
ABR |
709 |
$1.36 |
$1.40 |
2.94%
|
$28.36
|
|
MAIN |
230 |
$2.46 |
$2.52 |
2.44% |
$13.80 |
The total Dividend increases were $54.01. At 3.5% dividend rate for my dividend portfolio , these increases were equivalent to additional $1,500 invested in our portfolio in order to generate $52.50 of dividend income. We were happy with the dividend increases for the month of August.
| 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 |
$1,778.32 |
62.71% |
|
July |
$611.83 |
$1074.04 |
$2,878.45 |
169.71% |
|
Aug |
$215.28 |
$539.82 |
$1,675.49 |
210.38% |
|
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 |
$12,856.98 |
This month, the total amount $45,365.56 were used to purchase dividend growth stocks to increase our annual dividend come by $2,186.04. 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 August 2021:
| Date | Number of Shares | Ticker | Amount | Dividend |
|---|---|---|---|---|
|
Aug 06/2021 |
Buy 21 |
TSE:EQB |
$3177.99 |
$31.08 |
|
Aug 06/2021 |
Buy 123 |
TSE:MFC |
$3097.29 |
$137.76 |
|
Aug 09/2021 |
Buy 100 |
TSE:POW |
$4,214.99 |
$179.00 |
|
Aug 09/2021 |
Buy 100 |
TSE:BCE |
$6,350.00 |
$350.00 |
|
Aug 09/2021 |
Sell 100 |
NIO |
-$4,409.00 |
|
|
Aug 09/2021 |
Buy 100 |
TSE:PPL |
$3,976.00 |
$252.00 |
|
Aug 16/2021 |
Buy 12 |
TSE:QQC-F |
$1,493.44 |
$11.40 |
|
Aug 18/2021 |
Buy 200 |
TSE:PPL |
$7,861.00 |
$504.00 |
|
Aug 18/2021 |
Buy 100 |
TSE:BCE |
$6,471.00 |
$350.00 |
|
Aug 18/2021 |
Buy 100 |
TSE:T |
$2,888.00 |
$126.00 |
|
Aug 23/2021 |
Sell 100 |
NIO |
-$3,887.97 |
|
|
Aug 23/2021 |
Buy 10 |
MSFT |
$3042.20 |
$22.40 |
|
Aug 23/2021 |
Buy 60 |
AAPL |
$8,896.60 |
$52.80 |
|
Aug 26/2021 |
Sell 100 |
MGNI |
$2,801.97 |
|
|
Aug 30/2021 |
Buy 40 |
TSE:BMO |
$5,055.99 |
$169.60 |
Dividend Reinvestment Plan (DRIP)
In August, we were able to drip 22 shares for the total of $933.63 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 July 2021, our portfolio was $629,319. Our portfolio at the end of August 2021 was $674,802. The total capital increase for the month of August 2021 was $45,482 or 7.23%. The main reason for the increase of our portfolio because we used the profit in our growth stocks to buy dividend stocks.
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Summary
August was a good month for us. We were able to generate total of $2,249.27 in passive income. Our portfolio increased 7.23% to $674,802.
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 August. Our dividend income has passed our $30,000 goal for 2021.
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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