We can’t believe that we are in November already. Christmas music already is playing in the malls and snow is ready to fall any day soon.
October started well for us with our Canadian Thanksgiving long weekend. We didn’t do much for Thanksgiving this year, just our own small family dinner. Here are a few photo shots we took in October..
Sample of foods we ate in October…
Passive Income
For the month of October 2020, we have received $1271.16 of dividend income and some income from writing options. The total passive income for the month of October 2020 was $2968.39 . This passive income included both incomes from dividends and option calls.
Dividend Income
October was another month with over $1,000 a month in dividends. The following companies have paid us in October 2020:
| No | Name | Ticker | Dividend Income | Dripped |
|---|---|---|---|---|
|
1 |
Algonquin Power & Utitlities |
AQN |
$180.61 |
8 |
|
2 |
Bank of Nova Scotia |
BNS |
$206.00 |
3 |
|
3 |
Capital Power Corp. |
CPX |
$51.25 |
1 |
|
4 |
goEasy |
GSY |
$69.30 |
1 |
|
5 |
Iron Mountain Inc. |
IRM |
$50.10 |
1 |
|
6 |
Main Street Capital |
MAIN |
$38.13 |
1 |
|
7 |
New Residential Investments |
NZL |
$45.60 |
6 |
|
8 |
Realty Income |
O |
$27.14 |
|
|
9 |
Telus |
T |
$147.71 |
5 |
|
10 |
TD Bank |
TD |
$312.05 |
3 |
|
11 |
TC Energy Corporation |
TRP |
$143.27 |
2 |
|
|
|
Total: |
$1271.16 |
31 |
We received total of $1271.16, an 42% increase from October, 2019. Out of $1271.16 received, $1111.19 is in CAD and $160.97 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 $9038.48.32 in Dividend Income. This is 90% more than the dividends we received for the year 2019. Please check the Dividend Income 2020 for details. Our goal for 2020 is $10,000 dividend income. There are 2 months till the year end, We are confident that our goal will exceed our goal.
My top 3 dividends for October were TD, BNS and AQN. They were combined for total of $698.66 or 55% 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. Therefore, we will add more money to Realty Income (O) , Iron Mountain (IRM) and Telus (T) or other dividend stocks to diversity our income.
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 made in the month of October 2020:
| Date | Transaction | Expired Date | Amount | |
|---|---|---|---|---|
|
1 |
10-Sept-2020
|
Put LVGO130 |
02-Oct -2020
|
$869.03
|
|
2 |
21-Sept-2020
|
Put LMND50 |
16-Oct-2020
|
$329.04
|
|
3 |
23-Sept-2020 |
Call NET45 |
16-Oct-2020 |
$133.04 |
|
4 |
08-Oct-2020 |
Buy Call NET45 |
16-Oct-2020 |
-$251.95 |
|
5 |
09-Oct-2020
|
Put LVGO140
|
16-Oct-2020
|
$499.03 |
|
6 |
12-Oct-2020 |
Put DKNG50 |
16-Oct-2020 |
$119.04 |
The total income for selling Call/Put option for the month of October 2020 was $1697.23 US dollar compared to 406.13 US from September 2020. There was one transaction (Call NET45), we had to recover the Call because the stock was passing our target price.
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 October for growing to a bigger Dividend Snowball. The $2968.39 total income that we received in October 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 October 2020, our dividends increased 42% YoY compared to October 2019. We had 3 dividend increases in October. Therefore the growth of the our dividend income depended on these 3 Dividend Increases, Dividend Reinvestment and Additional Contribution to purchase of new stocks.
Dividend Increases
The following companies increased their Dividend in October 2020:
| Ticker | # of Shares | Original Dividend | New Dividend | % Change | Dollar Change |
|---|---|---|---|---|---|
|
V |
50 |
$1.20 |
$1.28 |
6.7 |
$4 |
|
WCN |
34 |
$0.98 |
$1.09 |
10.8 |
$3.96 |
|
MCD |
20 |
$5.00 |
$5.16 |
3.2 |
$3.20 |
|
ABBV |
164 |
$4.72 |
$5.20 |
10.16 |
$78.72 |
The total Dividend increases were $89.88. At 4% dividend rate, these increases were equivalent to additional $2,500 invested in our portfolio in order to generate $100 of dividend income. The dividend increased from Abbvie was impressive. We were very happy with 10.16% increase in dividend coming from Abbvie. However, we were a little disappointed with 6.7% increase from Visa. This company had consistently increased its dividend around 20% annually. However, in the pandemic, any increase is proving that the company is doing ok.
| 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% |
|
April |
$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 |
$539.82 |
150% |
|
Sep |
$288.39 |
$1518.41 |
426.51% |
|
Oct |
$896.64 |
$1271.16 |
41.77% |
|
Nov |
$512.08 |
|
|
|
Dec |
$512.08 |
|
|
|
Total |
$4757.74 |
$9038.48 |
90% |
So far, our YTD Dividend Income is already over 90% of the entire 2019 year. Our Projected Annual Dividend Income (PADI) is $15,036. We have reached our milestone in the PADI. There are 2 more months till the end of 2020. Hopefully, we are positive that we would reach our goal of dividend income $10,000 in 2020
Details of the transactions for the month of October 2020 were posted in the post ‘October Buys/Sells‘.
This month, the total amount $12,609 were used to purchase dividend stocks to increase our annual dividend come by $687.10.
Dividend Reinvestment Plan (DRIP)
In September, we were able to drip 31 shares for the total of $924.27 of the dividend income. We are enrolled in DRIP Plan whenever it is possible. Using DRIP Plan, we increased
Summary
October was a good month for us. We were able to generate total of $2968.39 in passive income. Our Dividend Snowball already has surpassed the amount we collected in the whole 2019 year.
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 October.
How was your passive income in October?
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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