Quarterly Update – Q2 2017

Welcome to the quarterly update for Q2 2017. This is part of  a series where I track our financial progress on a quarterly basis. I present three parts in this series: (i) Investment & Portfolio Update, (ii) Passive Income Update, and (iii) Goals Update.

1. Investment & Portfolio Update

Q2 2017 saw very little activity in our portfolio.
We added to the following positions.

We continued adding to the following funds

  • BMO S&P/TSX Capped Composite Index ETF (ZCN.TO)
  • Vanguard All-World Ex-Canada Index ETF (VXC.TO)
  • BMO Aggregate Bond Index ETF (ZAG.TO)
  • BMO Emerging Bond Index ETF (ZEF.TO)
  • Vanguard Emerging Market Bond ETF (VWOB)
  • US Equity Index (Seg) Fund
  • Intl Equity Index (Seg) Fund
  • Scotia Monthly Income (Mutual) Fund

Reduced/Closed positions: We reduced/closed positions in the following in Q2 2017

Q2 saw 4 dividend increase announcements in our portfolios. The companies from our portfolios increasing their dividends and details of portfolio changes are summarized below.

Overall, the portfolio performance has been pretty good so far in 2017. The following is a screenshot from StockRover where I track my portfolio and as you can see, the YTD performance for all of our holdings have been pretty fantastic. Keep in mind that this does not show the closed position (realized profit) in CRE.V, which if included takes my YTD performance to 12.8%.

2. Passive Income Update

A great quarter on the passive income front. During the quarter, we managed to earn a passive income of $2,159.57.

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 1,965.95 2,561.37
2017 2,067.19 $2,159.57  

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 2017, providing us with some great overall passive income – which we proceed to invest into stocks and funds to compound our growth.

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. Goals Update

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

  • Earn $10,000 in annual passive income
    • Passive income YTD is $4,227 (achieved 42.2% of goal)
  • Start two portfolios for our daughter – one for post-secondary education via RESP (Registered Education Savings Plan) and the other- a DRIP plan Achieved!
    • I started the two portfolios mentioned and have been making regular contributions to grow these accounts. See the details here.
  • Pay down an extra 25% towards mortgage debt
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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.

8 thoughts on “Quarterly Update – Q2 2017

  1. Not bad, but what’s up with the two consecutive quarters of slightly lower passive income? Is that purely due to the options trading? Good luck getting to the $10K by the end of the year, still possible!

    • Had some really good quarters last year due to increased dividends (sold off some of my portfolio last year) and also had more options income in those quarters. Hoping to hit the goal this year, lets see if it works out.

      R2R

  2. Hi R2R,

    My kids RESP is with TD Waterhouse. Can I opt in for DRIPs for their holdings; AGT Food and Ingredients, Dollarama, EnerCare Inc., Extendicare, Manulife Financial Corp., Royal Bank of Canada and Sun Life Financial Inc. If so, what do I do?

    Another question, I bought Manulife (after already holding Sunlife) and am not sure why I did that. I haven’t sold because it’s doing well and pays a reasonable dividend. Thoughts on owning two competitors?

    Looking forward to following along #newsubscriber.

    P.S. I live in Ottawa too.

    Sarah.

    • Hi Sarah,
      Great to hear from a fellow Ottawa resident.

      I dont have an account with TD, but I would be very surprised if TD Waterhouse doesnt offer synthetic DRIPs. Almost all brokerages provide that feature. You can check with them to make sure that you can take advantage of it.

      MFC and SLF, even though insurance companies, will give you concentration in the sector. I think their diversification models are slightly different, although I havent researched them in the last couple of years. As far as you are well diversified across different sectors and different asset classes, I think its ok.

      cheers
      R2R

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