We can’t believe that kids are back to school since the beginning of September. This year, Tyler is going to grade 8 and Ella is going to grade 3. Since this is Tyler’s last year in Elementary School, we have decided that it would be important for him to attend classes in person. Ella is in Grade 3. She would have more time in her elementary school, so she is doing a virtual class for now.
October is the start of Autumn, the “Cooling off” season. Nighttime arrives earlier, temperatures begin to drop and most garden growth decreases. Autumn is a gorgeous season where the leaves change to a golden color. We just love the season of Autumn because the changing colors of the leaves, the freshness in the fall air . And best of all is Halloween…
September started well for us with Labour Day long weekend. We didn’t do much in September besides the kids were back to their school schedules (no more playing game late at night). However, we ate very well in September, especially we tried the battle of Spicy Chicken Sandwich. Here are a few photo shots we took in September…
We had a chicken sandwich battle and the winner is…..
The unanimous winner of the Chicken Sandwich battle was Mary Brown’s. Both, my wife and the kids liked Mary Brown’s better. I still liked the Spicy Chicken Sandwich from Popeyes.
Passive Income
For the month of September 2020, we have received $1518.41 of dividend income and some income from writing options. The total passive income for the month of September 2020 was $1924.54 . This passive income included both incomes from dividends and option calls.
Dividend Income
September was our biggest month for dividend. The following companies have paid us in September 2020:
| No | Name | Ticker | Dividend Income | Dripped |
|---|---|---|---|---|
|
1 |
Alimentation Couche-Tard Inc |
ATD-B |
$9.10 |
|
|
2 |
Broadcom |
AVGO |
$32.50 |
|
|
3 |
Brookfield Renewable Partners |
BEP |
$116.04 |
1 |
|
4 |
Brookfield Infrastructure Corporation |
BIPC |
$1.98 |
|
|
5 |
Brookfield Infrastructure Partners |
BIP |
$69.62 |
1 |
|
6 |
Brookfield Property Partners |
BPY |
$193.82 |
12 |
|
7 |
Canadian National Railway |
CNR |
$57.50 |
|
|
8 |
Enbridge Inc. |
ENB |
$614.79 |
13 |
|
9 |
Fortis Inc. |
FTS |
$73.06 |
1 |
|
10 |
Johnson & Johnson |
JNJ |
$31.31 |
|
|
11 |
LyondellBasell Industries |
LYB |
$60.90 |
|
|
12 |
Main Street Capital |
MAIN |
$37.93 |
1 |
|
13 |
McDonald's Corporation |
MCD |
$25.00 |
|
|
14 |
Manulife Financial |
MFC |
$74.48 |
4 |
|
15 |
3M |
MMM |
$29.40 |
|
|
16 |
Microsoft Corporation |
MSFT |
$30.60 |
|
|
17 |
Realty Income |
O |
$21.48 |
|
|
18 |
Pepsi Co. |
PEP |
$31.70 |
|
|
19 |
Visa |
V |
$12.00 |
|
|
|
|
Total: |
$1518.41 |
33 |
We received total of $1518.41, an 426.51% increase from September, 2019. This is a significant increase from 2019 because of the new money were added to buy shares of $ENB in 2020. Out of $1518.41 received, $1131.05 is in CAD and $387.36 is in US dollar or 74 to 26 split. For simplicity of this calculation, we are using 1:1 rate for the currency approach. Year to Date, we have received total of $7767.32 in Dividend Income. This is 63% more than entire year of 2019. Please check the Dividend Income 2020 for details.
My top 3 dividends for September were ENB, BPY and BEP. They were combined for total of $924.65 or 61% 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) , Johnson & Johnson (JNJ), Pepsi (PEP) and Starbuck (SBUX) 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 September 2020:
| Date | Transaction | Expired Date | Amount | |
|---|---|---|---|---|
|
1 |
26-Aug-2020
|
Call RKT40 |
18-Sept -2020
|
$109.04
|
|
2 |
26-Aug-2020
|
Call NET45 |
18-Sept-2020
|
$148.05
|
|
3 |
02-Sept-2020
|
Put LMND50
|
18-Sept-2020
|
$149.04 |
The total passive income for selling Call/Put option for the month of September 2020 is $406.13 US dollar compared to 789.20 US from August 2020. 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 September for growing to a bigger Dividend Snowball. The $1924.54 total income that we received in September 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 September 2020, our dividends increased 426.51% YoY compared to September 2019. We had 4 dividend increases in September. Therefore the growth of the our dividend income depended on these 4 Dividend Increases, Dividend Reinvestment and Additional Contribution to purchase of new stocks.
Dividend Increases
The following companies increased their Dividend in September 2020:
The total Dividend increases were $99.18. At 4% dividend rate, these increases were equivalent to additional $2,500 invested in our portfolio in order to generate $100 of dividend income. In addition, we were very happy with 50% increase in dividend coming from New Residential Investment. Reminding, this company used to pay $2 of annual dividend before the pandemic.
| 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 |
|
|
|
Nov |
$512.08 |
|
|
|
Dec |
$512.08 |
|
|
|
Total |
$4757.74 |
$7767.32 |
61% |
So far, our YTD Dividend Income is already over 61% of the entire 2019 year. Our Projected Annual Dividend Income (PADI) is $14,439. We hope the our PADI would close the year with $15,000. There are 3 more months till the end of 2020. Hopefully, our dividend income will reach our goal of $10,000 in 2020
Details of the transactions for the month of September 2020 were posted in the post ‘September Buys/Sells‘. However, in the income report, we only detailed about transactions of dividend stocks, not growth stocks.
This month, the total amount $24,101 were used to purchase dividend stocks to increase our annual dividend come by $1054.19. However, we sold in total of $16,108.45 of dividend stocks in September which decreased our dividend income by $297.82. With all the selling and buying, we were able to increase our dividend income by $756.36. The following dividend stocks were bought/sold during September 2020:
| Ticker | Transaction | Amount | Dividend | |
|---|---|---|---|---|
|
1 |
TSE:WCN |
Buy 12 |
$1569.63 |
$11.88 |
|
2 |
TSE:BNS |
Buy 19 |
$1070.57 |
$68.40 |
|
3 |
TSE:BEP-UN |
Buy 26 |
$1515.39 |
$61.10 |
|
4 |
SBUX |
Buy 10 |
$855.59 |
$18.90 |
|
5 |
TSE:GSY |
Buy 30 |
$1806.99 |
$54.00 |
|
6 |
TSE:RY |
Buy 32 |
$3010.63 |
$138.24 |
|
7 |
ABBV |
Buy 77 |
$6811.40 |
$363.44 |
|
8 |
TSE:T |
Buy 47 |
$1107.91 |
$54.99 |
|
9 |
TSE:CPX |
Buy 100 |
$2935.99 |
$204.00 |
|
10 |
V |
Buy 10 |
$1974.62 |
$12.00 |
|
11 |
O |
Buy 24 |
$1442.54 |
$67.24 |
|
12 |
TSE:VFV |
Sell 114 |
-$8,888.71 |
-$152.94 |
|
13 |
TSE:KL |
Sell 63 |
-$4022.01 |
-$41.58 |
|
14 |
MMM |
Sell 20 |
-$3197.73 |
-$103.30 |
Dividend Reinvestment Plan (DRIP)
In September, we were able to drip 33 shares for the total of $1008.27 of the dividend income. We are enrolled in DRIP Plan whenever it is possible. Using DRIP Plan, we increased
Summary
September was a good month for us. We were able to generate total of $1924.54 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 September.
How was your passive income in September?
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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