Passive Income Update – Apr 2014

Welcome to my April 2014 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 April 2014 was $259.56.

 

Starting Apr 2014, I have decided to differentiate the different currencies when reporting my passive income. For this month, my passive income is $220.81 CAD and $35.23 CAD totaling the $256.05 CAD with the exchange rate of $1 USD = $1.10 CAD. All currencies in the rest of this article default to CAD$ unless otherwise noted.

My passive income YTD is $1,582.03 and achieves 39.5% of my 2014 goal of $4,000. This month’s passive income is 55.45% higher than a year ago (Apr 2013 passive income was $166.98).

Passive income contributing entities:

Stocks:

  • BCE Inc (BCE.TO)
  • Cineplex Inc (CGX)
  • Inter Pipeline Ltd (IPL)
  • Medtronic Inc (MDT)
  • Realty Income Corp (O)
  • RioCan REIT (REI.UN)
  • Rogers Communications Inc (RCI.B.TO)
  • The Bank of Nova Scotia (BNS.TO)
Funds:
  • BMO Equal Weight Utilities Index ETF (ZUT.TO)
  • Claymore S&P US Dividend Growers ETF (CUD.TO)
  • iShares Canadian Financial Monthly Income Fund (FIE.A.TO)
  • Scotia Diversified Monthly Income Fund (mutual fund)

Other:

  • Advertising revenue from this blog
  • Interest on cash
  • MBNA Smartcash cashback credit card
  • Seeking Alpha – one new article published!
My “other” sources of passive income have been growing this year as part of my plan to grow that revenue stream in 2014. The breakdown of my passive income contributing entities is shown below: my dividends totaled $144.90 and my other passive income totaled $114.67 in April.

 

Portfolio Update

Dividend Increases

April saw dividend increase announcements from my portfolio holdings.

Over the course of the month, I have added to some of my positions. The following are the details of my portfolio changes.

 

Added positions
I added to my positions in:

  • Claymore S&P US Dividend Growers ETF (CUD.TO)
  • iShares Canadian Financial Monthly Income Fund (FIE.A.TO)
  • Scotia Canadian Balanced Fund (mutual fund)
  • The Bank of Nova Scotia (BNS.TO)
Closed positions
I have finally closed my positions in the mutual funds I owned – something that I intended to do for the past few years in order to reduce my management fee expenses. However, due to the extraordinary returns over the last couple of years, I kept my positions open and profited well from the investments. My wife and I intend to buy a house sometime this year and the plan has always been to use these funds as part of our downpayment – so, moving these funds into a cash position was long overdue. I have decided that it was a good time for some profit-taking while the markets are at an all-time high. Read details about this transaction here.My full list of holdings can be found here.

16 thoughts on “Passive Income Update – Apr 2014

  1. Great job R2R! $260 is great for a relatively slow dividend paying month. And that’s a great YoY increase for April! Keep up the good work! Just curious how much of the increase is from dividends vs your other sources?

    • hah! You caught me. Actually my dividends have gone down for April (last year it was all dividends – I didnt have any other sources of passive income). Selling that mutual fund last month and some of the bond holdings end of 2013 has dropped my monthly distributions (the mutual funds accounted for $32 per month). So, last years April dividend income was $166.98 and this April’s dividend income is $144.90.

      regards

  2. A nice increase over last year, however one could argue that writing articles on SA isn’t really a form of passive income as you actually need to “work” for that 🙂

    Best,

    DW

    • Thanks for stopping by and the comment, D&W.
      Yes it is work, but it is similar to something akin to royalty collection from book writing. Besides, these are the stocks that I am researching anyway – so, its like getting paid to pursue my hobby (writing). I agree its not completely passive – I guess its semi-passive in a way.
      That gives me an idea for a post – I might write a blog post discussing this.

      regards
      R2R

  3. Anonymous says:

    ALways nice to see the divs increasing without any effort on our part.
    Congrats on the incoming income.
    My big months are Jan, Apr, Jul, Oct so while I do own som eof the same equities as you, the differential in the holdings probably make the difference ex. I have a significant amount of BCE which pays in the months I mentioned.
    My objective is to increase divs Y2Y by 10%. Last year, 2013) I managed 17%. Mind you that is with contributing to my RRSP and TFSA.
    I am not trying to pig out as I do hold some stocks pay well under 5%. But who can complain when the yield on cost is well above that. ALL dividends get re-invested so that is how I get to the 10% div increase on a yearly basis. I am not taking in to account any capital gain increases. I do at times sell off some stocks but the capital is re-invested as well

    • Thanks for the input, Anon. That is a good increase year over year. I hope to reach that some day in the future. Most of the stocks I pick are for the long term and I intend to add to the positions every year going forward increasing my position gradually.

      Thanks for stopping by.
      cheers
      R2R

  4. R2R,

    Great job. The YOY growth was mighty impressive, and that’s some fantastic passive income you’re generating.

    I’m currently looking at BCE and RCI.B right now, and I see you’re long both. Do you favor either one? I know they operate in different areas of Canada, and have different asset mixes. I’m keen on RCI, but the balance sheet leaves a bit to be desired.

    Keep up the great work!

    Best wishes.

    • Thanks Jason.
      Both BCE and RCI are doing well. They have cornered the wireless market completely and theres no growth left there anymore. In fact, they face headwinds in the wireless market – as the Canadian government is pushing to get new entrants in order to encourage competition…the government sees this as a way of getting more popular votes with the consumers.

      Both BCE and RCI have pushed hard into the media business and that’s where all their future revenue growth will probably come from.
      As far as favoring goes, BCE has a major part of its business in traditional telephone (wireline) which I am not a fan of. Think of BCE as the equivalent of AT&T. RCI has some really good media deals (NHL broadcasting, a very vast print/magazine business etc), there have been some rumors for a netflix equivalent type of service (but no confirmations of any kind).

      I am halfway through writing a post with my case for data pipelines – so, stay tuned 🙂

      regards
      R2R

    • Thanks for the wishes, FFD. I will be selling some more positions in the near future to fund our home down payment. It’ll be close but Im hoping to meet the goals this year.

      Thanks for stopping by
      R2R

    • It is good to see the numbers rising slowly and even if we dont see big jump from month to month, watching the growth over a year or multiple years is very rewarding.

      Thanks for stopping by
      R2R

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