Passive Income Update – Sep 2014

Welcome to my monthly passive income update for September 2014. This is part of the series where I, as a dividend growth investor, track my monthly dividends and also other passive income sources. Passive income for the month of Sep 2014 was $235.07 (down 27.70% from a year ago).
  Passive Income - September 2014
Starting Apr 2014, I have decided to differentiate between the currencies when reporting my passive income. For this month, my passive income is US $84.43 and CA $140.51 and the exchange rate is $1 USD = $1.12 CAD.

I saw a drop in passive income this month as I decided that I did not want to sell my shares in The Jean Coutu Group (PJC.A.TO), which were in-the-money and decided to buy the call option back for $75.00. I had written the call for the wrong reasons and realized that I made a mistake. Lesson learned. My passive income YTD is $3,329.43 and achieves 83.23% of my 2014 goal of $4,000. Passive income contributing entities:
Stocks:
  • Archer Daniels Midland (ADM)
  • Chevron (CVX)
  • Cineplex Inc (CGX.TO)
  • Inter Pipeline Ltd (IPL.TO)
  • Johnson & Johnson (JNJ)
  • Qualcomm Inc (QCOM)
  • Realty Income Corp (O)
  • RioCan REIT (REI.UN.TO)
  • Thomson Reuters Corp (TRI.TO)
  • Wells Fargo & Co (WFC)

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)

Options:

  • I bought back the Sep20 call option on The Jean Coutu Group Inc (PJC.A.TO) for a loss of $45.00 (STO for $30.00. BTC for $75.00)

Other:

  • Advertising revenue from this blog
  • Interest on cash
  • MBNA Smartcash cashback credit card
  • Seeking Alpha

Portfolio Update

Dividend Increases

September saw one dividend increase announcement from my current holdings.

Added positions

Over the course of the month, I have added to some of my positions:

  • iShares Canadian Financial Monthly Income Fund (FIE.A.TO)
  • iShares US Dividend Growers Index ETF (CUD.TO)
  • Scotia Canadian Balanced Fund (mutual fund)
  • The Bank of Nova Scotia (BNS.TO)

Closed positions

I closed my positions in the following options

  • IAMGold Corp (IMG.TO) call options (7) – expired worthless, netting me a profit of $49.00 in Sep.
  • The Jean Coutu Group (PJC.A.TO) call option (1) – BTC for a loss of $45.00.
My full list of holdings is available here.
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22 thoughts on “Passive Income Update – Sep 2014

  1. JC says:

    Looking pretty good R2R! Just chalk that up as a one time hit against your eps! At 83% of your goal you’re well ahead of your target! How much do you think you’ll beat it by? Keep up the good work!

    • Its a learning experience indeed.
      About the goal, yes I am pleased to have reach this stage so far. I dont think I will be exceeding it by too much. Maybe 5-10% more? We’ll see. I am already thinking about 2015 and wondering what goal to set.

      cheers
      R2R

    • I felt like I was reading a quarterly report. Very well documented. Lots of income streams to keep up with. It gets harder to keep up with the streams as they become more complicated, but it looks like you are doing a fabulous job. Keep up the good work.

      Keep cranking,

      Robert the DividendDreamer

      • Hi Robert,
        Thanks for the complement….I have most of it pretty streamlined, so its not that hard and takes only a few minutes to stay on top of things.
        Of course, investing in individual companies means that I need to dedicate a bit more time and stay on top of each instead of using funds where risks are much more mitigated, but with just 20 stocks in my portfolio, I find that its not that hard.

        Thanks for stopping by.
        Ive added you to my reading list…will be looking forward to reading your blog going forward.

        cheers

    • Hi AD,
      Yes I think I will be able to reach my goal of $4K. For a while in the summer, I was thinking that the goal was unachievable, but things stabilized after I sold off some of my holdings for the home purchase financing. Although my passive income took a hit, things are starting to look up already.

      Thanks for stopping by
      R2R

  2. Oops about the call option mistake but hopefully you learned from your mistake. 🙂

    83.23% of your 2014 goal is HUGE! You should hit your goal no problem.

    • Yeah I dont know what I was thinking. I shouldnt have written that call option in the first place. I got carried away and got a bit greedy thinking that I could make some free money. Lesson learned indeed.

      Yes, I think I will be able to meet my $4K goal this year. Already setting my eyes for next year’s goal.

      Thanks for the wishes
      R2R

  3. You’re doing great. I’m sure you will reach your passive income goal for the year.
    I just beat my goal of 400$ in dividends for 2014 and extended my goal to 500$.
    The value of my portfolio have taken a hit this past month because I’m not that well diversified jet.
    I have been reading about writing calls and puts, do you have any recommendations for where I can get good info about how to minimize risk this way?

    • Congrats on beating you goal, Sindre. I think everyone has taken a bit of a hit recently…my net worth went a bit negative as well – with the market downturn and some big expenses at home combined. Oh well…thats the name of the game.

      Hmm I dont think I have found a great enough resource to recommend anything. I have been learning simply by reading stuff online and trying now and then how to do it. Sorry, I cant recommend anything good for you regarding options trading. Maybe someone else can. Bloggers such as writing HelloSuckers, AllAboutInterest probably have more experience in this and could possibly suggest something. I would try contacting them for some input.

      Hope that helps
      R2R

    • haha You are right, w2r. Back in the fall of 2013, I was thinking more in the range of $3600 as a goal but decided to stretch myself to $4000 and seems like I made it. For next year, I have to think whats realistically achievable and stretch myself a bit 🙂

      Thanks for stopping by

  4. Great progress! One of the nicer benefits of DGI is the ablility to easily track your month (and yearly progress) with nothing more than a simple spreadsheet. September was a great month for me as well!

    Keep following the road!

    Take care!

    • Thats right, ILG. It must’ve been so hard before the Internet and the computer days. Now, we get caught up between pennies and what not. So much convenience for no cost. Cant complain 🙂
      Sep wasnt that great a month for me due to the option loss, but still it was a good learning experience. Thanks for stopping by

      R2R

  5. I didn’t know you did call options?

    That is something I have not done yet, a little worried and fearful I will mess it up.

    Keep up the good work, seems you have some good diversification building.
    Mark

    • I dabble occasionally. But its experiences like this one that stop me from doing it more often. I was just being greedy and realized that I should only write options if I truly want to sell the shares of a company. But in the fast moving world today, it seems like news changes and perspectives change fast – so, what you think when you write the option and what happens before the expiry can be quite different. But thats where the money’s to be made, I guess.

      Thanks for stopping by
      R2R

    • Thanks for the wishes, DM. I should be happy that I still generated over $200 in passive income…but I keep bashing myself up for being greedy and making that mistake.

      Thanks for stopping by and the comment
      R2R

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