Quarterly Update – Q2 2016

Welcome to the quarterly update for Q2 2016. This is part of  a series where I track our financial progress on a quarterly basis. I present four parts in this series: (i) Investment & Portfolio Update, (ii) Passive Income Update, (iii) Blog Update, and (iv) Goals Update.

1. Investment & Portfolio Update

Q2 2016 saw a lot of activity in our portfolio.
We initiated/added to the following positions.
We closed the following positions.
  • Apple Inc (AAPL)
  • Amgen Inc (AMGN)
  • Agrium Inc (AGU.TO)
  • AT&T (T)
  • Care Capital Properties Inc (CCP)
  • Chevron Corp (CVX)
  • Cineplex Inc (CGX.TO)
  • General Electric (GE)
  • Main Street Capital (MAIN)
  • Power Corp of Canada (POW.TO)
  • Thomson Reuters Corp (TRI.TO)
  • Wells Fargo & Co (WFC)

All sales that arent linked above are detailed in this post with the reasoning for exiting those investments.

Q2 saw 8 dividend increase announcements in our portfolios. The companies from our portfolios increasing their dividends and details of portfolio changes are summarized below.

DivGrowth-H12016

2. Passive Income Update

A great quarter on the passive income front. During the quarter, we managed to earn a passive income of $2,404.43. On a quarterly basis, our passive income saw another all-time high!! 🙂

Year

Q1 Q2 Q3 Q4

2013

$383.65 $516.32 $718.33 $1,063.97

2014

$1,322.47 $951.18 $1,055.79 $1,803.90

2015

$1,546.87 $1,960.10 $2,076.81 2,256.01

2016

2,167.95 2,404.43

image (5)

You can read our previous quarterly updates here.

“Other” Passive Income

Passive income that we achieve is split between investments from dividend paying companies and what I call other sources of passive income, which includes cash back rewards credit card, advertising revenue from this blog, interest on cash and writing premium articles for Seeking Alpha. As you can see from the chart below, our other category has performed well. Our passive income from the ‘other’ sources saw continued traction in Q2 2016, providing us with some great overall passive income – which we proceed to invest into stocks and funds to compound our growth.

  image (6)
I realize that some of our sources of passive income are not completely passive, as it requires us to put some time and effort into it. However, I consider these sources to be semi-passive and I wrote an article to capture my thoughts on the scale of passivity of each income type. Be sure to check out Passivity of Income.

3. Blog Update

Based on the pageviews, the following were the most popular posts on Roadmap2Retire.

I am still lagging in meeting my goal of reaching 15K pageviews consistently 🙁 I am currently averaging 12-13K pageviews per month and hope to bring that number up in the coming quarters.

4. Goals Update

Right. Onto the goals that I set and see how we did overall on that front.

  • Earn $9,000 in annual passive income On target, but will probably miss goal
    • As of Q2, we have achieved $4,572.38, which achieves 50% of the goal. Right on cue at mid year, but after selling a big portion of our portfolio, I am almost certain that we will fail to achieve this goal for the year.
  • Achieve better balance across asset classes and sectors Completed!
    • For the time being, I am happy with our asset allocation…we are close to 1/3 cash, 1/3 real assets (gold/silver and real estate) and 1/3 in other DGI stocks. I have detailed the reasons for picking this in this post. This is a short term allocation, and I will be slowly adjusting our portfolio going forward to align with our long term goals.
  • Take atleast two finance related courses On Target
    • I took one course so far. The course is Financial Markets taught by none other than Robert Shiller, Sterling Professor of Economics at Yale University. Prof Shiller is a Nobel Prize winner in Economics (won the prize in 2013). I am learnt a lot about diversification and other theoretical aspects. In addition, Prof Shiller discussed some very interesting aspects of behavioral (psychological and sociological) aspects in human beings which affect investing – something I wasn’t expecting from the course. It’s a fantastic course and I highly recommend it.
    • I am still undecided on the second course…something that I will need to look into during the second half of the year.
  • Blog Growth: Achieve 15K pageviews consistently through 2015 Needs Improvement
    • Blog traffic continues to lag and the consistent 15K pageviews remain elusive. Needs further improvement.
  • Write an e-book On Target
    • I have started putting some of my thoughts down on certain ideas. I still don’t have a firm idea on when I will finish, but thinking back to last year where I failed on this goal – the hardest part has been just getting started. I have overcome that hurdle and once I got started, some ideas have started flowing. Stay tuned for updates on this front in the coming quarters.
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That’s all folks! Thanks for reading. Be sure to leave a comment at the bottom – I love to hear from the readers on your thoughts and opinions.

12 thoughts on “Quarterly Update – Q2 2016

  1. Looking good buddy. Those sales will whack your dividend income, but I like that you raised cash and are preserving capital. You’ll redeploy it when we get better opportunities. I hope you have a great week!

    -Bryan

    • Thanks Bryan. Yeah…the forward dividend has taken quite a hit, but Im ok with that for now. For me, I am looking to preserve my capital while this market lunacy passes.

      R2R

  2. Hey congrats on the big quarterly dividend income. 2400 dollars is pretty good I must say. I am now going to find my excel spreadsheet to see what I made in the 2nd quarter myself. DO you always reinvest dividends or get cash to apply elsewhere in the markets?

    • Thanks moneywatch101. That is a decent chunk of money isnt it? I am happy with the progress.

      Hope you had a great Q2 as well. I have a couple of companies that DRIP regularly, but other than that..I let the cash accumulate in my accounts.
      R2R

  3. Fantastic quarter R2R. You may miss the annual dividend target, but it was by design. I like that your diversifying into metals and holding some cash back for the next market dip. Keep up the good work.

    Question on Seeking Alpha. How many premium articles do you average in a month? I used to write them under my old blog, but I haven’t done so as Investment Hunting. Do you see the same or higher numbers of visitors now compared to a year ago? I ask because it seems to me like SA readership has dropped, at least my leads from SA are not what they used to be.

    Thanks,
    Nathan

    • Thanks Nathan.
      SA pageviews have gone down quite a bit over the years…not sure what to make of it, but I keep writing some anyway. I am averaging two premium articles per month. Its companies that I am interesting learning more about and finding out the bull/bear cases and evaluating them, so I dont mind the low pageviews anyway.

      R2R

  4. Hey R2R,

    Awesome job on growing your quarterly income, those are trends that any company would be happy with. I think you’re taking the right move to sell down some of your positions, though of course for every seller there’s a buyer, so someone thinks they are buys!

    Good luck with Q3 🙂

    Tristan

    • Thanks Tristan,
      Yup…theres someone out there buying these companies that I am selling. Probably the company itself — doing their share buybacks. Fine by me 🙂 I will be going to cash and wait for better opportunities. Its a weird world that investors are buying bonds for capital appreciation and stocks for income.

      R2R

  5. I can’t wait to see your ebook. I also must say I envy your blogging results. 12-13,000 monthly views is pretty amazing. My highest ever was about 2,500.

    I hope the recent portfolio renovation works out for you!

    Sincerely,
    ARB–Angry Retail Banker

    • Hi ARB,
      Thanks for the wishes. The ebook has taken a backseat thanks to a busier family life with the arrival of our daughter this year. But I will keep plugging away at it when I can.

      Im sure those pageviews will pick up. Keep blogging away.

      The recent portfolio changes are doing great 🙂 My precious metal positions have done really well lately, and I want to add more, but waiting for some more consolidation before adding more.

      Thanks for stopping by
      R2R

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