Passive Income Update – Jul 2016

Welcome to our monthly passive income update for July 2016. This is part of the scorecard series where we track our dividends and other sources of passive income. We also include changes and updates related to our investments during the month – showing the growth of our dividends going forward.

Passive Income  Update

Passive income for the month of July 2016 was C$759.31. The passive income for the month comprised of US$282.46 and C$389.29 (exchange rate is US$1 = C$1.31).

PassiveIncome-Aug2016

Passive income change is +19.12% QoQ and +6.7% YoY for the month. The passive income YTD is $5,331.69, which achieves 59.24% of our annual goal of earning $9K.

Passive income contributing entities:

Stocks:

  • Algonquin Power & Utilities Corp (AQN.TO)
  • Bank of Nova Scotia (BNS.TO)
  • BCE Inc (BCE.TO)
  • General Electric (GE)
  • Inter Pipeline Ltd (IPL.TO)
  • Realty Income Corp (O)
  • Toronto-Dominion Bank (TD.TO)

Options:

  • One covered call option on The Jean Coutu Group (PJC.A.TO). Strike price: $19.00.
    • I wrote a short term covered call which ended up being  in-the-money when it expired (July 15, 2016) and the stock was called away.

Funds:

  • BMO Aggregate Bond Index ETF (ZAG.TO)
  • BMO S&P/TSX Capped Composite Index ETF (ZCN.TO)
  • Scotia Diversified Monthly Income Fund (mutual fund)

Other:

The breakdown of our passive income contributing entities: dividends & options totaled $282.47 and other passive income totaled $476.84. Read more about why we consider this as passive income in the Passivity Index post.

Portfolio Update

Dividend Increases

July saw two dividend increase announcements in our portfolio.

  • Omega Healthcare Investors Inc (OHI) raised its dividend by 3.45%
  • Realty Income Corp (O) raised its dividend by 1%

Added Positions

During the month, we added the following position to our portfolio

Closed Positions

During the month, we closed the following position to our portfolio

  • The Jean Coutu Group Inc (PJC.A.TO)

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

Disclosure: Our full list of holdings is available here.

< Passive Income

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17 thoughts on “Passive Income Update – Jul 2016

  1. Wow, really nice income! And nice growth with that 19%. I see you have quite a lot of payers in the first month of the quarter, so that’s nice also.

    Do you think you will manage your annual goal set for this year? Should be doable I guess.

    Keep up the good work!

    • Thanks P2F. The start of the quarter is usually a slower one, but I recently sold off a bunch of my investments (the only one that shows up in this list that I dont currently own is GE), so I expect to fail meeting my annual goal. Im ok with that. But in June and July, I have also received some nice options premium from writing covered calls — so thats a nice bump 🙂

      R2R

  2. JC says:

    That’s some huge growth QoQ and I’m guessing a big chunk of that was from your other passive income sources. Great stuff R2R! Over $5k in non-work income is impressive for just 7 months of the year. I’m hoping I can bump ours up to $10k between dividends and the blog but it’ll probably be close.

    • Hi JC,
      Its been another good month thanks to the ‘other’ and options premium coming in. And also finally getting some traction on the affiliate marketing.

      That sounds great that you will get close to $10K in dividends and blog income. That should cushion the blow a bit from the employment front. Hope things are going great otherwise with the little one.
      R2R

  3. A very solid performance for a “quiet” month as we all know. Again, I’m always happy to see Canadian banks paying out in so many dividend growth portfolios. Makes me feel good being a fellow shareholder. It will be interesting to see how the metals do going into the second half of 2016. So far silver has been on a tear. Thanks for sharing.

    • Thanks DivHut. It was a good month and I didnt expect it to be so good…but I’ll take it 🙂
      The Canadian banks are moving along nicely and I am keeping a close eye on the housing market and its effects on the banks. Looks like Vancouver may have pricked its own bubble finally last month with the new tax introduction.

      Safety is what I am focusing on these days and no better place than gold and silver 🙂
      R2R

  4. Very inspiring results. I love the data going all the way back to 2013. Looks like my data in 2015 when I started, so I have something to shoot for over the coming years. Thanks for sharing and nice work!

  5. Solid growth R2R. With you liquidating 1/3 of your dividend portfolio recently do you expect more passive income coming from the other sources rather than dividends?

  6. Awesome job R2R, getting such a big % of your target is great and you must be getting closer to FI? You could live pretty basically in many parts of the world on that income 🙂 Good luck next month.

    Tristan

    • Thanks. I expect future months to drop quite a bit as my dividend income will decrease and I dont intend to keep writing options as I did this month. But its a marathon, not a sprint…I will be working away at building that income and protecting my assets

      R2R

    • Thanks IH.
      It was a great month thanks to some added tailwind from affiliate program and option writing premiums. Your July looked pretty good too, and now that we both have significant portion sitting in cash, we just sit back and wait for the fireworks 🙂

      R2R

  7. rob says:

    Hi R2R,

    First time commentor. Just wondering about opening up a position with OHI and when I read that you have it in your portfolio, I wondered if its in a rasp? Perhaps you could give me your take on it and whether its worth to start at this current price. Thanks and good luck on your continued div. results. Rob.

    • Hi Rob,
      OHI is a good company and is fairly priced right now. However, it is a bit more riskier play specializing in the SNF space, but you do get rewarded with a juicy yield for that risk. If you are looking for safer plays, I recommend looking into HCN and VTR. Both are well run diversified healthcare companies. The yield is slightly lower, but that comes with the safety. I personally own VTR — which is one of the best run companies in the sector. OHI gives me some added yield but as I said, its slightly riskier.

      Best
      R2R

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