Hello everyone, welcome to our income report for March 2021. March 2021 was one of the better month for our dividend income.
Passive Income
For the month of March 2021, we have received $1,661.87 of dividend income and some income from writing options. The total passive income for the month of March 2021 was $2,908.94 . This passive income included both incomes from dividends and option calls.
Dividend Income
March was a better month for dividend income. The following companies have paid us in March 2021:
| No | Name | Ticker | Dividend Income March 2020 | Dividend Income March 2021 | Dripped | |
|---|---|---|---|---|---|---|
|
1 |
Arbor Realty Trust |
ABR |
$83.01 |
|
|
|
|
2 |
Alimentation Couche-Tard Inc. |
TSE:ATD-B |
$2.73 |
|
|
|
|
3 |
Broadcom Inc. |
AVGO |
$31.88 |
$90.00 |
|
|
|
4 |
Brookfield Renewable Partners |
BEP-UN |
$24.68 |
$162.21 |
2 |
|
|
5 |
Brookfield Infrastructure Partners |
BIPC |
|
$1.91 |
|
|
|
6 |
Brookfield Infrastructure Partners |
BIP-UN |
$248.70 |
$86.69 |
1 |
|
|
7 |
Canadian National Railway |
CNR |
$34.50 |
$61.50 |
|
|
|
8 |
Enbridge Inc. |
ENB |
$127.98 |
$827.49 |
17 |
|
|
9 |
Fortis Inc. |
FTS |
$72.10 |
$78.28 |
1 |
|
|
10 |
Johnson & Johnson |
JNJ |
|
$36.36 |
|
|
|
11 |
LyondellBasell Industries N.V. |
LYB |
$46.97 |
|
|
|
|
12 |
Main Street Capital |
MAIN |
$28.30 |
$39.16 |
1 |
|
|
13 |
McDonald Corporation |
MCD |
$25.85 |
|
|
|
|
14 |
Manulife Financial |
MFC |
|
$76.44 |
2 |
|
|
15 |
Microsoft Corp. |
MSFT |
$34.69 |
$35.70 |
|
|
|
16 |
3M Corporation |
MMM |
$30.00 |
|
|
|
|
17 |
NextEra Energy |
NEE |
|
$82.01 |
1 |
|
|
18 |
Realty Income |
O |
$12.09 |
$38.22
|
|
|
|
19 |
Pepsi |
PEP |
$26.77 |
|
|
|
|
20 |
Starbucks Corp. |
SBUX |
|
$45.90 |
|
|
|
21 |
Visa Inc. |
V |
$11.47 |
|
|
|
|
|
|
Total: |
$881.58 |
$1,661.87 |
25 |
Starbucks used to pay in February, but they had changed to pay their dividend in March. Also, we didn’t received the dividend for MCD, MMM, PEP and Visa because we sold these stocks sometime at the end of last year.
We received total of $1,661.87 an 89.10% increased from March, 2010 from 14 companies. Out of $1,661.87 received, $1330.22 is in CAD and $331.65 is in US dollar or 80 to 20 split. For simplicity of this calculation, we are using 1:1 rate for the currency approach.
By the end of March 2021, our Projected Annual Dividend Income (PADI) was $17,600. Our goal for 2021 was able to receive $20,000 in the Project Annual Dividend Income.
My top 3 dividends for March were ENB, BEP-UN and AVGO. They were combined for total of $1,079.70 or 65% 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 March 2021:
| Date | Transaction | Expired Date | Amount | |
|---|---|---|---|---|
|
1 |
22-Feb-2021
|
CALL MGNI80 |
19-Mar-2021
|
$448.03
|
|
2 |
02-Mar-2021
|
PUT DMTK70 |
19-Mar-2021
|
$799.04
|
The total income for selling Call/Put option for the month of Marh 2021 was $1,247.07 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 $2,908.94 total income that we received in March 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 March 2021, our dividends increased 89.10% YoY compared to March, 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 March 2021, we have only 1 company increased the dividend.
| Ticker | # of Shares | Original Dividend | Original Dividend | % Change | Dollar Change |
|---|---|---|---|---|---|
|
ENGH |
166 |
$0.54 |
$.64 |
18% |
$16.60 |
The total Dividend increases were $16.60. At 3.5% dividend rate for my dividend portfolio , these increases were equivalent to additional $500 invested in our portfolio in order to generate $17 of dividend income. We were happy with the small dividend increase for the month of March.
| 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 |
|
|
|
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 |
$3,993.89 |
Our current Projected Annual Dividend Income (PADI) is $17,726. For the year 2021, we are planning to have $20,000 in the PADI.
This month, the total amount $25,598 were used to purchase dividend growth stocks to increase our annual dividend come by $1,374.76 However, we sold total of $5,717 of dividend stocks and lost total of $145.44 dividend income. As the result, our total dividend increased by $1,229.32 in March 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 March 2021:
| Date | Number of Shares | Ticker | Amount | Dividend |
|---|---|---|---|---|
|
March 01/2021 |
Buy 15 |
O |
$906.38 |
$42.30 |
|
March 01/2021 |
Buy 28 |
TSE:BNS |
$2128.83 |
$100.80 |
|
March 01/2021 |
Buy 80 |
TSE:T |
$2,081.99 |
$99.20 |
|
March 01/2021 |
Buy 51 |
MPW |
$1,092.91 |
$57.12 |
|
March 10/2021 |
Buy 400 |
AQN |
$7,863.99 |
$330.16 |
|
March 10/2021 |
Buy 100 |
TRP |
$5,749.99 |
$348.00 |
|
March 15/2021 |
Sell 36 |
JNJ |
-$5717.58 |
-$154.44 |
|
March 15/2021 |
Buy 55 |
MAIN |
$1298.64 |
$81.18 |
|
March 15/2021 |
Buy 200 |
ABR |
$3,364.99 |
$264.00 |
|
March 15/2021 |
Buy 10 |
ABBV |
$1,110.89 |
$52.00 |
Dividend Reinvestment Plan (DRIP)
In March, we were able to drip 25 shares for the total of $1,140.53 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 February 2021, our portfolio was $552,009. Our portfolio at the end of March 2021 was $569,190. The total capital increase for the month of March 2021 was $17,181 or +3.11%. Again, our biggest gain came from our TD (Dividend Growth Stocks portfolio)$21,667 or 4.74%
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Summary
March was a good month for us. We were able to generate total of $2,908.94 in passive income. Our portfolio increased 3.11% to $569,190.
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 March.
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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