Hello everyone, welcome to our income report for September 2021. September was a good dividend month for us with 18 companies in our portfolio paid out in the month of September.
Passive Income
For the month of September 2021, we have received $2,221.06 of dividend income and $470.88 income from writing options. The total passive income for the month of September 2021 was $2,691.94. This passive income included both incomes from dividends and option calls.
Dividend Income
September was a good month for dividend income . The following companies have paid us in September 2021:
| No | Name | Ticker | Dividend Income September 2020 | Dividend Income September 2021 | Dripped |
|---|---|---|---|---|---|
|
1 |
Alimentation Couche-Tard Inc. |
TSE:ATD-B |
$9.10 |
$55.13 |
|
|
2 |
Broadcom Inc. |
AVGO |
$32.50 |
$90.00 |
|
|
3 |
Brookfield Renewable Partners |
BEP-UN |
$116.04 |
$162.21 |
2 |
|
4 |
Brookfield Infrastructure Partners |
BIPC |
$1.93 |
$1.91 |
|
|
5 |
Brookfield Infrastructure Partners |
BIP-UN |
$69.62 |
$83.45 |
1 |
|
6 |
Brookfield Property Partners |
BPY-UN |
$189.07 |
|
|
|
7 |
BlackRock Science and Technology Trust |
BST |
|
$58.53 |
1
|
|
8 |
BlackRock Science and Technology Trust II |
BSTZ |
|
$71.14 |
1 |
|
9 |
Canadian National Railway |
CNR |
$57.50 |
$61.50 |
|
|
10 |
Enbridge Inc. |
ENB |
$614.79 |
$996.16 |
7
|
|
11 |
Equitable Group Innc. |
EQB |
|
$15.17 |
|
|
12 |
Fortis Inc. |
FTS |
$73.06 |
$79.29 |
1 |
|
13 |
Johnson & Johnson |
JNJ |
$16.16 |
|
|
|
14 |
Home Depot Inc. |
HD |
|
$107.25 |
|
|
15 |
LyondellBasell Industries N.V. |
LYB |
$60.90 |
|
|
|
16 |
Main Street Capital |
MAIN |
$37.93 |
$47.15 |
1 |
|
18 |
McDonald Corporation |
MCD |
$25.00 |
|
|
|
19 |
Manulife Financial |
MFC |
$74.48 |
$101.36 |
4 |
|
20 |
Microsoft Corp. |
MSFT |
$30.60 |
$67.20 |
|
|
21 |
3M Corporation |
MMM |
$29.40 |
|
|
|
22 |
NVIDIA Corporation |
NVDA |
|
$5.57 |
|
|
22 |
Realty Income |
O |
$21.48 |
|
|
|
23 |
Pepsi |
PEP |
$31.70 |
|
|
|
24 |
Pembina Pipeline Corp |
PPL |
|
$174.72 |
|
|
25 |
UnitedHealth Group Inc. |
UNH |
|
$43.50 |
|
|
26 |
Visa Inc. |
V |
$12.00 |
|
|
|
|
|
Total: |
$1,518.41 |
$2,221.06 |
18 |
We received total of $2,221.06 an 46.28% increased from September, 2010 from 18 companies. Out of $2,221.06 received, $1730.72 is in CAD and $490.34 is in US dollar or 78 to 22 split. For simplicity of this calculation, we are using 1:1 rate for the currency approach.
New dividend payments for this month were: EQB, HD, NVDA and UNH. These were companies that we bought recently. We didn’t drip the dividends came from our taxable account this month.
My top 3 dividends for September were ENB, BEP-UN and PPL. They were combined for total of $1,309.09 or 60% 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.
By the end of September 2021, our Projected Annual Dividend Income (PADI) was $33,767 or monthly $2,813. Our goal for the year 2021 was able to reach $30,000 in the Project Annual Dividend Income and we reached this goal in August 2021.
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 September 2021:
| Date | Transaction | Expired Date | Amount | Exercised | |
|---|---|---|---|---|---|
|
1 |
23-Aug-2021
|
CALL SQ 300 |
03-Sept-2021
|
$75.94
|
No |
|
2 |
23-Aug-2021
|
CALL RVRL 65 |
03-Sept-2021
|
$68.94
|
No |
|
3 |
23-Aug-2021 |
CALL SE 350 |
03-Sept-2021 |
$148.94 |
Yes |
|
4 |
23-Aug-2021 |
CALL DMTK 45 |
17-Sept-2021 |
$45.94 |
No |
|
5 |
23-Aug-2021 |
CALL NVDA 250 |
10-Sept-2021 |
$52.95 |
No |
|
6 |
03-Sept-2021 |
CALL PLTR 29 |
10-Sept-2021 |
$40.10
|
No |
|
7 |
10-Sept-2021 |
CALL SE 370 |
17-Sept-2021 |
$74.25 |
No |
|
8 |
15-Sept-2021 |
CALL SQ 270 |
17-Sept-2021 |
$28.25 |
No |
|
9 |
21-Sept-2021 |
CALL PLTR 29 |
24-Sept-2021 |
$76.01 |
No |
|
10 |
22-Sept-2021 |
PUT SOFI 17 |
24-Sept-2021 |
$140.61 |
No |
The total income for selling Call/Put option for the month of September 2021 was $751.93 US dollar. However our call for SE was exercised, we had to buy back 1 Call of SE at the cost of $281.03 in order to keep our shares. As a result, our total option income for the month of Sept 2021 was reduced to $470.88. 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 June for growing to a bigger Dividend Snowball. The $2,691.94 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 2021, our dividends increased 46.28% YoY compared to September, 2020. We had 4 dividend increases in September. Therefore the growth of the our dividend income depended on Dividend Reinvestment and Additional Contribution to purchase of new stocks.
Dividend Increases
In September 2021, we have only 4 companies increased the dividend.
| Ticker | # of Shares | Original Dividend | Increased Dividend | % Change | Dollar Change |
|---|---|---|---|---|---|
|
FTS |
200 |
$2.02 |
$2.14 |
5.9% |
$24.00 |
|
MSFT |
147 |
$2.24 |
$2.48 |
10.7% |
$35.28 |
|
SBUX |
102 |
$1.80 |
$1.96 |
8.88% |
$16.32 |
|
LIF.TO |
594 |
$7.00 |
$8.40 |
20% |
$831.60 |
The total Dividend increases were $907.20. At 4.0% dividend rate for my dividend portfolio , these increases were equivalent to additional $22,000 invested in our portfolio in order to generate $880.00 of dividend income. LIF.TO dividend is based on the price of Iron Ore. Therefore, we are not expecting this company can keep the dividend at this rate. However, we were happy with the dividend increases for the month of September.
| 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 |
$1,617.43
|
70.62% |
|
May |
$259.79 |
$483.04 |
$913.40 |
89.09% |
|
June |
$397.69 |
$1086.17 |
$1,778.32 |
62.71% |
|
July |
$611.83 |
$1074.04 |
$2,878.45 |
169.71% |
|
Aug |
$215.28 |
$539.82 |
$1,675.49 |
210.38% |
|
Sep |
$288.39 |
$1518.41 |
$2,221.06 |
46.28% |
|
Oct |
$896.64 |
$1271.16 |
|
|
|
Nov |
$512.08 |
$652.66 |
|
|
|
Dec |
$512.08 |
$2,076.88 |
|
|
|
Total |
$4757.74 |
$11,760.66 |
$15,078.04 |
This month, the total amount $41,464 were used to purchase dividend growth stocks to increase our annual dividend come by $2,555.44. We sold total of $31,287 of growth stocks in September 2021. Therefore, the actual amount that we deposited in our portfolio to buy stock for September was $10,177. 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 September 2021
| Date | Number of Shares | Ticker | Amount | Dividend |
|---|---|---|---|---|
|
Sept 02/2021 |
Buy 10 |
MSFT |
$3010.40 |
$24.80 |
|
Sept 02/2021 |
Sell 300 |
NIO |
-$11,752.91 |
|
|
Sept 02/2021 |
Buy 10 |
AAPL |
$1,529.20 |
$8.80 |
|
Sept 10/2021 |
Buy 20 |
EQB |
$3,052.79 |
$29.60 |
|
Sept 10/2021 |
Sell 100 |
RVRL |
-$6,299.96 |
|
|
Sept 10/2021 |
Sell 100 |
MGNI |
-$2,997.97 |
|
|
Sept 13/2021 |
Sell 500 |
TIGR |
-$6,749.91 |
|
|
Sept 15/2021 |
Buy 50 |
IIPR |
$11,731.60 |
$300.00 |
|
Sept 17/2021 |
Buy 10 |
MSFT |
$3,002.70 |
$24.80 |
|
Sept 17/2021 |
Sell 100 |
DMTK |
-$3,514.97 |
|
|
Sept 17/2021 |
Buy 221 |
LIF.TO |
$8,717.59 |
$1,856.40 |
|
Sept 19/2021 |
Buy 35 |
RY |
$4,498.40 |
$151.20 |
|
Sept 20/2021 |
Buy 20 |
AAPL |
$2,918.00 |
$17.60 |
|
Sept 20/2021 |
Buy 127 |
MFC |
$3,004.60 |
$124.40 |
Dividend Reinvestment Plan (DRIP)
In September 2021, we were able to drip 18 shares for the total of $796.79 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 August 2021, our portfolio was $674,802. Our portfolio at the end of September 2021 was $642,248. The total capital decrease for the month of September 2021 was –$32,553 or -4.82%. Even though, our portfolio was down in September, but our dividend income continued to grow higher. We still raked in total of $2,221.06 in dividends.
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Summary
September was a good month for passive income. We were able to generate total of $2,691 in passive income. Even though, our portfolio was down in September, but our projected dividend income increased to $33,767 annually. Also, we continued buying good companies at a better price with our consistent contributions!!
Our options were doing well for us in September. 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 June.
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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