Passive Income Update – Oct 2013

Welcome to my October 2013 monthly passive income update. This is part of the series where I track my monthly dividends and other sources of passive income. Passive income for the month of October 2013 was a whopping $470.06, another all-time high (6th one of the year), this time crossing the $400 mark!!

 

My passive income this month is much higher than anticipated as my healthcare mutual fund paid out its annual 1.1% distribution in October instead of the usual December. My passive income YTD is currently at $2,088.41. I have now crossed my passive income target of $2,000 for 2013. Woohoo!! 🙂

Passive income contributing entities:

Stocks:

  • BCE Inc (BCE)
  • Cineplex Inc (CGX)
  • CPFL Energia (CPL)
  • Husky Energy (HSE)
  • Inter Pipeline Ltd (IPL)
  • Medtronic Inc (MDT)
  • RioCan REIT (REI.UN)
  • The Bank of Nova Scotia (BNS)
Options:

  • Husky Energy (HSE) – I wrote a Nov 16 2013 covered call on HSE and collected a premium
  • IAMGold Corp (IMG) – I wrote a Nov 16 2013 covered call on IMG and collected a premium

Funds:

  • iShares 1-5 Yr Laddered Government Bond Fund (CLF)
  • Claymore S&P US Dividend Growers ETF (CUD)
  • iShares Canadian Financial Monthly Income Fund (FIE.A)
  • BMO S&P/TSX Capped Composite Index ETF (ZCN)
  • BMO Equal Weight Utilities Index ETF (ZUT)
  • A mutual fund yielding approximately 6%
  • Healthcare mutual fund annual distribution of 1.1%
Other:

  • Advertising revenue from this blog
  • MBNA Smartcash credit card cashback
  • Interest on cash
 
Initiated position
I initiated a new position in Johnson & Johnson (JNJ) – details here. JNJ is a giant in the healthcare and consumer goods sector and fits into my plan of building my own healthcare fund in order to reduce my mutual funds fees (see My Goals for details).
Added positions
I added to my positions in: IAMGold (IMG), Husky Energy (HSE), Omega Healthcare Investors Inc (OHI), iShares Canadian Financial Monthly Income Fund (FIE.A), Vanguard Total International Stock ETF (VXUS) and two globally diversified mutual funds.
Reduced position
I decided to take profits in Claymore S&P US Dividend Growers ETF (CUD) with partial sell. I continue to hold some of my funds in this ETF, but decided to take profits after this fund hit all-time highs. At the time of trade, the ETF was up 24.5% YTD with a yield of 1.64%.

Closed position
  • I closed my position in CPFL Energia SA (CPL) – details here. I held the stock for over three years and after some decent profits, I decided to end my position as there were no dividend growth. Also the fact that the semi-annual dividend amount varies was a contributing factor in exiting this position.
  • I closed my position in Consumer Staples Select Sector SPDR (XLP). It is still a great defensive play on the market in case of downturns. This trade was purely some profit taking after the recent all time highs.
  • My Oct 19 IMG $6.00 call option that I wrote in September expired out-of-the-money. By finishing out-of-the-money, I was able to keep the premium on the option contract without being called generating income in my portfolio.
My full list of holdings can be found here.
 

4 thoughts on “Passive Income Update – Oct 2013

  1. Wow, what a great month! Never hurts to see a big bump income from an annual distribution or two. Definitely a fan of OHI and am looking forward to the next 20-30 years as the number of individuals needed residential medical facilities increases drastically with the baby boomers aging.

    • Didnt expect October to be so massive, but here we are 🙂
      Thats right, writing2reality. I am extremely bullish on the healthcare sector as the prospects for medical care, drug use, medical equipment, assisted medical facilities etc are very bright. I have been picking the healthcare stocks up slowly over the months in each of those subsectors.

      Thanks for stopping by.

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