Hello everyone, welcome to our income report for July 2021. July 2021 was not a good month for our growth stocks. Growth stocks were in down in April. However, our dividend stocks performed much better in July 2021. This is our highest dividend income ever.
Passive Income
For the month of July 2021, we have received $2,878.45 of dividend income and $799.69 of income from writing options. The total passive income for the month of July 2021 was $3,678.14 . This passive income included both incomes from dividends and option calls.
Dividend Income
July was our best month ever for dividend income. The following companies have paid us in July 2021:
We received total of $2,878.45, an 169.71% increased from July 2020 from 15 companies. Out of $2,878.45 received, $2,643.63 is in CAD and $234.82 is in US dollar or 92 to 8 split. For simplicity of this calculation, we are using 1:1 rate for the currency approach.
| No | Name | Ticker | Dividend Income April 2020 | Dividend Income April 2021 | Dripped | Dividend Income from Dripped | |
|---|---|---|---|---|---|---|---|
|
1 |
Algonquin Power & Utilities Corp. |
AQN |
$183.88 |
$325.78 |
6 |
$5.03 |
|
|
2 |
Alimentation Couche-Tard Inc. |
ATD-B |
|
$55.13 |
|
|
|
|
3 |
The Bank of Nova Scotia |
BNS |
$191.70 |
$235.80 |
2 |
$7.20 |
|
|
4 |
Capital Power Corporation |
CPX |
|
$105.07 |
2 |
$4.08 |
|
|
5 |
Cisco |
CSCO |
$52.51 |
|
|
||
|
6 |
goeasy Ltd. |
GSY |
$55.35 |
$102.30 |
|
|
|
|
7 |
Iron Mountain Incorporated |
IRM |
$50.10 |
|
|
||
|
8 |
Kirkland Gold |
KL |
$6.39 |
|
|
|
|
|
9 |
Labrado Iron Ore Royalty |
LIF |
|
$631.75 |
12 |
$84.00 |
|
|
10 |
Main Street Capital |
MAIN |
$37.72 |
$46.74 |
1 |
$2.46 |
|
|
11 |
Medical Properties Trust |
MPW |
|
$42.00 |
2 |
$2.24 |
|
|
11 |
New Residential Investment |
NRZ |
|
$85.00 |
8 |
$6.40 |
|
|
12 |
Realty Income |
O |
$17.51 |
$41.92
|
|
||
|
13 |
Invesco NASDAQ 100 Index |
QQC-F |
|
$2.62 |
|
|
|
|
14 |
Telus |
T |
$58.25 |
$267.82 |
8
|
$10.08 |
|
|
15 |
TD Bank |
TD |
$255.96 |
$494.54 |
5 |
$15.80 |
|
|
16 |
TC Energy |
TRP |
$141.75 |
$422.82 |
6 |
$20.88 |
|
|
17 |
Taiwan Semiconductor |
TSM |
|
$19.16 |
|
|
|
|
18 |
Vanguard S&P 500 Index ETF |
VFV |
$38.24 |
|
|||
|
|
|
Total: |
$1,067.25 |
$2,878.45 |
52 |
$158.53 |
By the end of July 2021, our Projected Annual Dividend Income (PADI) was $27,748. Our monthly dividend income is $2,312. We have increased our dividend goal for the year 2021 again. This time, we would love to increase our Projected Annual Dividend Income to $30,000 by the end of 2021.
My top 3 dividends for July were TRP, TD and LIF. They were combined for total of $1549.11 or 54% 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 July 2021:
| Date | Transaction | Expired Date | Amount | Exercised | |
|---|---|---|---|---|---|
|
1 |
10-Junel-2021
|
PUT CELH65 |
16-July-2021
|
$799.69
|
No |
The total income for selling Call/Put option for the month of July 2021 was $799.69 US dollar compared to $2,517.19 US from June 2021. 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 $3,678.14 total 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
In July 2021, our dividends increased 169.71% YoY compared to July 2020. We had 2 dividend increases in July. Therefore the growth of the our dividend income depended on Dividend Reinvestment and Additional Contribution to purchase of new stocks.
Dividend Increases
July 2021, we have only 2 company increased the dividend.
| Ticker | # of Shares | Original Dividend | Increased Dividend | % Change | Dollar Change |
|---|---|---|---|---|---|
|
CPX |
207 |
$2.04 |
$2.19 |
7.35% |
$31.05 |
|
ABR |
696 |
$1.36 |
$1.40 |
2.94% |
$27.84 |
The total Dividend increases were $58.89. At 4% dividend rate, these increases were equivalent to additional $1,450 invested in our portfolio in order to generate $58 of dividend income. So far, ABR has increased the dividend 5 quarters in a row. We were quite happy with the dividend increases.
| Month | 2019 | 2020 | 2021 | YoY% |
|---|---|---|---|---|
|
Jan |
$303.30 |
$829.32 |
$1,387.48 |
67.30% |
|
Feb |
$195.63 |
$409.79 |
$944.54 |
130.23% |
|
Mar |
$365.59 |
$878.85 |
$1,661.87 |
89.10% |
|
April |
$413.77 |
$947.88 |
$1,617.43 |
70.64% |
|
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 |
|
|
|
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 |
$11,181.49 |
This month, we spent $57,273 to increase our dividend income by $2,942.80. However, we sold total of $37,789.93 which decreased our dividend income by $850.24. Totally, $19,483 were used to purchase dividend growth stocks to increase our annual dividend come by $2,092.56. 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 July 2021:
| Date | Number of Shares | Ticker | Amount | Dividend |
|---|---|---|---|---|
|
July 05, 2021 |
Buy 100 |
PPL |
$3,968.00 |
$252.00 |
|
July 05, 2021 |
Buy 50 |
BMO |
$6,374.50 |
$212.00 |
|
July 06, 2021 |
Buy 40 |
TD |
$3,490.60 |
$126.40 |
|
July 06 2021 |
Buy 100 |
PPL |
$3,956.00 |
$252.00 |
|
July 07, 2021 |
Buy 258 |
BST |
$14,621.39 |
$699.70 |
|
July 07, 2021 |
Sell 178 |
O |
-$12,114.41 |
-$503.74 |
|
July 07, 2021 |
Buy 10 |
ABBV |
$1,178.29 |
$52.00 |
|
July 09, 2021 |
Buy 16 |
TSM |
$1,897.99 |
$28.48 |
|
July 19, 2021 |
Sell 5 |
SHOP |
-$9,259.06 |
|
|
July 19, 2021 |
Buy 54 |
TD |
$4,418.55 |
$170.64 |
|
July 19, 2021 |
Buy 100 |
ENB |
$4804.99 |
$334.00 |
|
July 22, 2021 |
Sell 225 |
NEE |
-$16,415.92 |
-$346.50 |
|
July 22, 2021 |
Buy 415 |
BSTZ |
$16,518.69 |
$815.58 |
|
July 22, 2021 |
Sell 100 |
CELH |
-$6,798.96 |
|
Dividend Reinvestment Plan (DRIP)
In July we were able to drip 52 shares for the total of $2,112.20 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 June 2021, our portfolio was $635,101. Our portfolio at the end of July 2021 was $629,319. The total capital decrease for the month of July 2021 was $5,781 or -0.91%. The main reason for this decrease was our investment in Chinese Growth stocks. Chinese growth stocks had a terrible month in July.
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Summary
July was not a good month for growth stocks. However, our dividend income continued to grow. In July, we were able to generate total of $3,678.14 of passive income. In addition, our projected annual dividend income has increased to $27,748 annually or $2,312 monthly.
This month, we sold less option because we didn’t see good opportunity to sell option call/put. If we see the opportunity, we would like to continue to sell more options to supplement our income in the future.
Our Dividend Snowball portfolio is progressing well for us. We are happy with our buy/sell transactions in July.
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.
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