It’s hard to believe that 2020 Summer is already half over. Also, It is impossible thinking that the locked down is still in effect in my city. In addition, I have been working from home more than 4 months.
July started off with Canada day on July 1st. First time in many years, we didn’t go anywhere. We just stayed at home and celebrated with delicious BBQ square ribs cooked by my wife.
We did eat very well in July. I really enjoyed the foods my wife cooked for us. Here’s a few photo shots of my favorite meals from July…
We celebrated our 15 years anniversary with Ginger Green Onion Lobsters.
E-fu noodles with my wife special lobsters sauce.
Homemade Tonkotsu Ramen
Passive Dividend Income
For the month of July 2020, for the second time, we have received over $1000/month of dividend income and some income from writing options. The total passive income for the month of July 2020 was $1297.14 . This passive income included both incomes from dividends and option calls.
Dividend Income
For the month of July 2020, for the second time, we have received over $1,000/month of dividend income. The following companies have paid us in July 2020
| Company | Amount | Dripped Share | |
|---|---|---|---|
|
1 |
TSE:AQN |
$183.88 |
9 |
|
2 |
TSE:ATD-B |
$6.79 |
|
|
3 |
TSE:BNS |
$191.70 |
3 |
|
4 |
TSE:GSY |
$55.35 |
1 |
|
5 |
IRM |
$50.10 |
|
|
6 |
TSE:KL |
6.39 |
|
|
7 |
MAIN |
$37.72 |
|
|
8 |
NZL |
$30.40 |
|
|
9 |
O |
$17.51 |
|
|
10 |
TSE:T |
$58.25 |
2 |
|
11 |
TSE:TD |
$255.96 |
3 |
|
12 |
TSE:TRP |
$141.75 |
2 |
|
13 |
TSE:VFV |
$38.24 |
We have received total of $1074.04, an 75% increase from July, 2019. This is huge increase from 2019 because we have deployed lots of cash in March and April of 2020. Out of $1074.04 received, $983.31 is in CAD and $135.73 is in US dollar or 87 to 13 split. For simplicity of this calculation, we are using 1:1 rate for the currency approach. Year to Date, we have received total of $5709.09 in Dividend Income. Please check the Dividend Income 2020 for details.
Options Income
Among the best options strategies for income are covered call writing and put selling. Writing covered calls is perhaps the best options strategy for income while put selling is an options income strategy designed to buy stocks at a lower cost basis.
Because of the addition of growth stocks in my portfolio, I decided to enhance my passive income with selling call/put options. The following transaction were made in the month of July 2020:
| Date | Transaction | Expired Date | Amount | |
|---|---|---|---|---|
|
1 |
07/28/2020 |
PUT FSLY 80 |
07/31/2020 |
$164.05 |
|
2 |
07/28/2020 |
CALL LVGO $125 |
07/31/2020 |
$59.05 |
The total passive income for selling Call/Put option for the month of July 2020 is $233.10 US dollar. 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
The reason we love Dividend Snowball Investing is the passive income. The money deposited right to our accounts while we were sitting at our couch watching Youtube. Our plan is to use our dividends to cover our living expenses when we are not working anymore.
Our Dividend Snowball Portfolio was able to accumulate more Dividends in July for growing to a bigger Dividend Snowball. The $1297 passive dividend income that we received in July 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
Passive Dividend Income Growth
In July 2020, our dividends increased 75% YoY compared to July 2019. July is a slow month for Dividend increase. We were expecting Telus to announce their bi-annual increase, but it didn’t happen. Therefore the growth of the our dividends came from the purchase of new stocks transactions. Money buys Dividend Income.
| 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% |
|
Apr |
$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 |
|
|
|
Sep |
$288.39 |
|
|
|
Oct |
$896.64 |
|
|
|
Nov |
$295.75 |
|
|
|
Dec |
$512.08 |
|
|
|
Total |
$4757.74 |
$5709.09 |
So far, our YTD Dividend Income already passed the entire 2019 year. There are 5 more months till the of 2020, hopefully our dividend income will able to collect more than $10,000 of dividends income.
Stock Transactions
The following stocks have been added to our portfolio in July:
| Date | Ticker | Transaction | Amount | Dividend | |
|---|---|---|---|---|---|
|
1 |
07/09/2020 |
TSE:KL |
Buy 25 |
$1565.74 |
$13 |
|
2 |
07/09/2020 |
TSE:ATD-B |
Buy 33 |
$1491.69 |
$9.24 |
|
3 |
07/09/2020 |
O |
Buy 17 |
$973.19 |
$46.92 |
|
4 |
07/09/2020 |
JNJ |
Buy 9 |
$1318.93 |
$36.36 |
|
5 |
07/09/2020 |
LVGO |
Buy 100 |
$10284.95 |
|
|
6 |
07/23/2020 |
TXN |
Sell 35 |
-$4491.96 |
-$126.00 |
|
7 |
07/23/2020 |
MSFT |
Buy 10 |
$2039.30 |
$20.40 |
|
8 |
07/23/2020 |
AAPL |
Buy 7 |
$2603.21 |
$22.96 |
|
9 |
07/30/2020 |
NET |
Buy 100 |
$4199.95 |
$18,268 were deployed in July 2020. However $14,848 were deployed to growth stocks instead of Dividend Stocks because we wanted to add more growth stocks to the portfolio. To generate extra passive income from growth stock, we had to sell options (Call/Put) on these stocks.
In July, we sold 35 shares of TXN which we had since 2018. We took profit of 30% (not including dividends collected since 2018) from this transaction, but it would decrease $126 from our annual dividend income. The proceed of the sale was used to buy shares of Microsoft and Apple because there was an opportunity to buy these stocks after the Microsoft’s earning.
The total of all transactions in July was $148.88. Subtracting the loss of income from the sell of TXN, our forward annual income would increase by $22.88.
Dividend Reinvestment Plan (DRIP)
In July, we were able to drip 20 shares for the total of $746 of the dividend income. We are enrolled in DRIP Plan whenever it is possible. However our US investment didn’t drip this month. We will check with my brokerage to see why. Using DRIP Plan, we increased
Summary
July 2020 was an exciting month. We started off with Canada day on the First of July and American Independence day on the Fourth of July. We were able to collect total of $1297 in passive income. Our Dividend Snowball already has surpassed the amount we collected in the whole 2019 year. Our Dividend Snowball has already surpassed the amount of dividend income for the whole year of 2019. We are very happy with the progress of our Dividend Snowball portfolio.
Also, we have started another stream of passive income by selling Call/Put options. We will continue selling options going forward to supplement our passive income.
How was your passive income in July?
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.