Hello everyone, welcome to our income report for February 2021. February 2021 was our lowest month for dividend income.
Our city has been locked down since December so the kids are schooling at home. Nothing major happening in the city in February, but our favourite Leafs are doing well this early season.
Passive Income
For the month of February 2021, we have received $944.54 of dividend income and some income from writing options. The total passive income for the month of February 2021 was $3,451.76 . This passive income included both incomes from dividends and option calls.
Dividend Income
February was smallest month for dividend income. The following companies have paid us in February 2021:
| No | Name | Ticker | Dividend Income Feb 2020 | Dividend Income Feb 2021 | Dripped | |
|---|---|---|---|---|---|---|
|
1 |
Abbvie Inc. |
ABBV |
$129.90 |
$231.40 |
2 |
|
|
2 |
Apple Inc. |
AAPL |
$31.26 |
$36.49 |
|
|
|
3 |
Bank of Montreal |
BMO |
|
$109.20 |
1 |
|
|
4 |
Enghouse Systems Limited |
ENGH |
|
$265.68 |
4 |
|
|
5 |
Main Street Capital |
MAIN |
$26.87 |
$38.95 |
1 |
|
|
6 |
New Residential Investment |
NZL |
$103.31 |
|
|
|
|
7 |
Realty Income |
O |
$11.58 |
$34.94
|
|
|
|
8 |
Royal Bank of Canada |
RY |
$31.32 |
$277.88 |
2 |
|
|
9 |
Starbucks Corp. |
SBUX |
$21.49 |
|
|
|
|
10 |
Texas Instruments Inc. |
TXN |
$41.44 |
|
|
|
|
11 |
Stag Industrial Inc. |
STAG |
$12.72 |
|
|
|
|
|
|
Total: |
$409.79 |
$944.54 |
10 |
New Residential Investment and Starbucks used to pay in February, but they had changed to pay their dividend in March. Also, we didn’t received the dividend for Texas Instruments because we sold this stock sometime at the end of last year. In addition, ENGH paid a special dividend $1.50 this year; therefore the amount was greater than normal dividend.
We received total of $944.54 an 130.49% increased from February, 2010 from 8 companies. Out of $944.54 received, $602.76 is in CAD and $341.78 is in US dollar or 64 to 36 split. For simplicity of this calculation, we are using 1:1 rate for the currency approach.
By the end of February 2021, our Projected Annual Dividend Income (PADI) was $16,497. Our goal for 2021 was able to receive $20,000 in the Project Annual Dividend Income.
My top 3 dividends for February were RY, ENGH and ABBV. 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.
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 January 2020:
| Date | Transaction | Expired Date | Amount | |
|---|---|---|---|---|
|
1 |
04-Feb-2021
|
PUT FUBO50 |
19-Feb-2021
|
$699.02
|
|
2 |
09-Feb-2021
|
PUT FUBO50 |
26-Feb-2021
|
$1,828.00
|
The total income for selling Call/Put option for the month of February 2021 was $2,507.22 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 January for growing to a bigger Dividend Snowball. The $3,451.76 total income that we received in February 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 February 2021, our dividends increased 130.49% YoY compared to February 2020. We had 6 dividend increases in February. Therefore the growth of the our dividend income depended on Dividend Reinvestment and Additional Contribution to purchase of new stocks.
Dividend Increases
In February 2021, we have only 6 companies increased the dividend.
| Ticker | # of Shares | Original Dividend | Original Dividend | % Change | Dollar Change |
|---|---|---|---|---|---|
|
BIP |
134 |
$1.94 |
$2.04 |
5.15% |
$13.40 |
|
BEP |
421 |
$1.1573 |
$1.215 |
4.99%
|
$24.33
|
|
GSY |
155 |
$1.80 |
$2.64 |
46.67% |
$130.20 |
|
NEE |
213 |
$1.40 |
$1.54 |
10% |
$29.82 |
|
TRP |
281 |
$3.24 |
$3.48 |
7.41% |
$67.44 |
|
MPW |
149 |
$1.08 |
$1.12 |
3.70% |
$5.96 |
The total Dividend increases were $271.15. At 3.6% dividend rate for my dividend portfolio , these increases were equivalent to additional $7,500 invested in our portfolio in order to generate $270 of dividend income. We were happy with the dividend increase for the month of February.
| 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 |
|
|
|
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 |
$2,332.22 |
Our current Projected Annual Dividend Income (PADI) is $16,497. For the year 2021, we are planning to have $20,000 in the PADI.
This month, the total amount $14,573 were used to purchase dividend growth stocks to increase our annual dividend come by $382.04. However, we sold total of $10,173 of dividend stocks and lost total of $64.00 dividend income. As the result, our total dividend increased by $318.04 in February 2021. 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 February 2021:
| Date | Number of Shares | Ticker | Amount | Dividend |
|---|---|---|---|---|
|
February 02/2021 |
Buy 14 |
O |
$852.79 |
$39.39 |
|
February 02/2021 |
Buy 23 |
TSE:BIP_UN |
$1080.43 |
$63.94 |
|
February 05/2021 |
Buy 34 |
TSE:BEP_UN |
$1,991.51 |
$52.70 |
|
February 24/2021 |
Sell 50 |
V |
-$10,173.79 |
-$64.00 |
|
February 24/2021 |
Buy 100 |
NEE |
$7,714.99 |
$154.00 |
|
February 24/2021 |
Buy 5 |
AVGO |
$2,433.72 |
$72.00 |
Dividend Reinvestment Plan (DRIP)
In February, we were able to drip 10 shares for the total of $810.17 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 January 2021, our portfolio was $542,925. Our portfolio at the end of February 2021 was $552,009. The total capital increase for the month of February 2021 was $9,083 or +1.67%. Our biggest gain came from our TD (Dividend Growth Stocks portfolio)$10,198 or 4.74%.
Below is the chart of all accounts from January 1, 2021 to February 28, 2021.
Below is the chart of all accounts from February 1, 2021 to February 28, 2021.
Summary
February was a ok month for us. We were able to generate total of $3,451.76 in passive income. Our portfolio increased 1.67% to $552,009.
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 February.
How was your passive income in February?
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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