Passive Income Update – May 2015

Welcome to my monthly passive income update for May 2015. This is part of the scorecard series where I track my dividends and other sources of passive income. I also include changes and updates related to my portfolio during the month.

Passive Income  Update

Passive income for the month of May 2015 was C$648.60. The passive income comprised of US$326.34 and C$240.67 (exchange rate is US$1 = C$1.25).

Passive Income - May 2015

With this, my passive income YTD is $2,817.93, which achieves 51.23% of my annual goal of earning $5,500 in passive income.

Passive income contributing entities:

Stocks:

  • Apple Inc (AAPL)
  • AT&T Inc (T)
  • Cineplex Inc (CGX.TO)
  • Inter Pipeline Ltd (IPL.TO)
  • Kinder Morgan Inc (KMI)
  • Main Street Capital (MAIN)
  • Realty Income Corp (O)
  • Omega Healthcare Investors Inc (OHI) – pro-rated dividend
  • RioCan REIT (REI.UN.TO)
  • The Jean Coutu Group (PJC.A.TO)

Funds:

  • BMO Aggregate Bond Index ETF (ZAG.TO)
  • BMO Equal Weight Utilities Index ETF (ZUT.TO)
  • iShares Canadian Financial Monthly Income Fund (FIE.A.TO)
  • Scotia Diversified Monthly Income Fund (mutual fund)

Other:

The breakdown of my passive income contributing entities: dividends from stocks and funds totaled $232.07 and other passive income totaled $416.53. Read more about why I consider this as passive income in Passivity Index post.

Portfolio Update

Dividend Increases

May saw dividend increase announcement from the following in my current holdings.

Closed Position

We sold our position in

Added Positions

We initiated/added to our positions in

Due to the pro-rated dividends from Omega Healthcare (OHI) this quarter, I missed out on DRIPping one share. Nevertheless, I am happy to collect the dividends in cash from OHI.

In addition, we continued adding to my wife’s portfolio’s positions in the following ETFs. Details of our combined portfolio strategy can be found here.

  • BMO S&P/TSX Capped Composite Index ETF (ZCN.TO)
  • Vanguard FTSE All World Ex-Canada Index ETF (VXC.TO)
  • BMO Aggregate Bond Index ETF (ZAG.TO)

That’s all folks! Hope you had a great May as well. Be sure to share your thoughts, comments or concerns below. I love hearing from the readers.

Disclosure: My Full list of holdings is available here.

< Passive Income

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35 thoughts on “Passive Income Update – May 2015

  1. fantastic stuff. Just a though, I think you should look at more US dividend plays (provided You find them) as I believe the canadian dollar could depreciate more against the USD in the coming year. That way you dont loose dividend gains to exchange rate risk.

    • Thanks Rajveer.
      I have been investing in US dividend plays but its getting harder and harder to find. One way I am trying to exploit good finds is by looking for Canadian companies that trade on the Canadian exchange, but have a lot of their operations in the US – and their financial reporting (and more importantly – dividends) are in US$. This way, I can take advantage of the rising greenback.

      R2R

  2. Very nice! It’s a good feeling to be ahead of yourself when working toward an income goal. I constantly chastise myself for waiting until my late fifties to begin DG investing. Considering your age, retirement should be a financial piece of cake. Keep up the good work.

    Steve

    • Better late than never, DG. I still worry about my retirement – even though things look like they are on track for a decent return over the next couple of decades.

      Thanks for stopping by
      R2R

    • Thanks Amber. A little bit from each avenue – thats what Ive been working on…with each passing month – its grows by a little….and hopefully it will be significant enough.

      Best
      R2R

  3. Great stuff R2R, solid passive income for the month of May. Would love to hear further breakdown on your non-dividend incomes. Keep up the good work.

    • Thanks Dividend Lord. Your blog is new to me – will add it to my reading list and check it out.

      CU has a long track record of raising dividends – but I still havent come around and looked at it closely. Maybe your question will motivate me to go and do that. Ive been reading up on Atco (ACO.X.TO) and really like it, and I realize that CU.TO is part of Atco, but Im not sure I understand what the corporate structure is like. I will have to read up on that and will be sure to share it on the blog when I complete it. Thanks for pointing out an interesting company that has been on the backburner for me.

      R2R

  4. Tim Collet says:

    R2R, on your U.S. Investment in KMI type investments. How do you avoid the double taxation on the distributions? At source, the IRS insist on a non-refundable 30% withholding tax, and then in Canada these distributions are taxed as income, which could be another 30%. Are you able to avoid the 30% withheld by the IRS by way of a dividend re-investment strategy?

    • Tim,
      Kinder Morgan Inc (KMI) is a US corporation and the distributions paid are considered a stock dividend. If you hold the stock in a RRSP account, no withholding taxes from US corporations apply. If you are being withheld taxes by your broker, get in touch with them – as this is clearly a violation of the tax treaty between US and Canada.

      Best
      R2R

      • Tim Collet says:

        Thanks RR, I clearly need to better understand which U.S. Investments are subject to the 30% withholding tax, regardless if held inside an RRSP. As an example, NRP on New York is subjected to 30% withholding tax, regardless of RRSP tax treaty or not. Thanks for the clarification on KMI as I was seriously considering adding that to my portfolio…Tim

        • Tim,
          Good luck with the investment – KMI is a great company and I think its still at a very good valuation level for initiation. I am not familiar with NRP…I will have to check it out.

          cheers
          R2R

  5. Congratulations R2R. Solid income my friend. We’re all happy for you. Keep it up and keep up the awesome momentum. Thank you for sharing with us and always a pleasure visiting you. Take care bud.

  6. Thanks for sharing this inspiring update. That’s an awesome total for a ‘quiet’ dividend paying month. I just started looking at MDT myself as I’m interested in increasing my health stocks in my portfolios. Nice to read a reason for a sale ans why it doesn’t fit in your portfolio anymore. Keep the snowball rolling.

    • Hey DivHut,
      Things are coming along, arent they? Actually the second month of my quarter is the high dividend payer – thanks to the heavy hitters such as KMI and OHI.

      MDT is still a great company and I would’ve loved to own it, but considering there are so many other options out there which are more tax friendly, I figured I can sell MDT and better invest elsewhere.

      Best wishes
      R2R

    • DivBeginner,
      I havent looked at valuation for CGX in a while – maybe I should check to see if it warrants some additional $s. But yeah, the PE looks high on surface.

      Thanks for stopping by
      R2R

  7. JC says:

    Great job R2R! Solid month of passive income for you. I still need to tally up my passive income for May, been a bit preoccupied. Your other passive income is quite hefty and the best part about that is that it will help to grow your truly passive dividend income. Keep up the good work and great job reaching the halfway mark of your goal for the year a month early. Plans to increase that after June’s done?

    • Thanks for stopping by and the comment, JC. Yes, the “other” semi-passive income should help in accelerating my fully passive income over the coming years. I am considering increasing my target for the year…will re-evaluate as the end of year draws closer.

      Best
      R2R

  8. Excellent income and great progress in your annual goal in dividend income. Since we are in the middle of the year (sigh) then it lookms like you are well on track to meet your goal this year. Congrats! And thanks for posting the results.

    • Thanks Martin. This year is just flying by…cant believe we are almost halfway done with 2015. Its good to have reached over 50% of the goal though…hope things are well on your end.

      cheers
      R2R

  9. R2R,

    Great job with the dividend income – $232 for doing absolutely nothing is pretty sweet! 🙂

    The other income is rocking along as well. Looks like you’re going to smash your goal this year. Keep it up!

    Best regards.

    • DM,
      Thanks for the comment. Its a pretty sweet gig when money just shows up in the account, doesnt it? I get more excited by these than my active income deposits in my account.

      cheers
      R2R

  10. Wow, we have had almost the exact same amount of passive income for 2015 (I’ve had $2,879 thru May). We also hold several of the same positions (KMI, AAPL, O, T).

    Wanna race? First to $10,000? jk

    Eric

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