Passive Income – January 2019 / Goals for 2019

Once in a month I will publish a Passive Income Report. This will show you what changes happened in my portfolio and how much passive income I collected during the month. This month I received 104,5 € in passive income, which is a 128 % increase compared to last January.

I have also included a short summary about my goals for this year. I was going to write a separate post about my annual goals, but I have been too busy for the past few weeks so I decided to include them in this post.

Goals for 2019

As some of you might remember, last year I was able to reach my annual passive income goal in November. This year I am not going to be so modest and I won’t be able to achieve my annual passive income goal that easily!

Let’s take a look what kinds of goals I set up for this year.

  • Receive 3 500 € in passive income – In 2018 I received 2 411 € in passive income, which means that this year I am aiming for 45 % growth. At the moment my projected income for the year is approximately 3 165 €.
  • Invest at least 14 000 € – This amount includes reinvested dividends. Usually I deposit about 8 500 € in a year, so I have to find a way to make a couple additional deposits.
  • Use less than 150 € in trading fees – I am trying to keep my brokerage fees under 1 %. This was my goal in 2018 as well, which I unfortunately failed (158 €). 
  • Increase Net Worth to 140 000 € – It is pretty hard to guess if I am going to achieve this goal or not. My net worth is obviously affected by market movements and our apartments roof also needs renovation in the coming years. If we decide to renovate it this year, I will have to value our apartment again. 
  • Sell Norwegian stocks from my portfolio – There are two reasons for this decision. First of all, neither one of these stocks (NOM and NOFI) currently pays dividends and for that reason these stocks don’t really fit into my portfolio. The second reason is the taxation. Norway recently changed their tax policy and now foreigners have to pay a 25 % withholding tax for dividends. You can apply for refund of withholding tax, but this application means extra work and the progress can take a really long time.

Achieving these goals won’t be easy, but I rather set up hard goals than readjust them in the middle of the year. Hopefully I won’t have any surprising major expenses this year, which would wreck my chances of reaching these goals.

Passive Income

Now that we have covered the goals for 2019, it’s time to move on to the usual month in review:

  • Gilead (GILD): 12,5 €
  • Medtronic (MDT): 11,9 €
  • Mintos (P2P loans): 28,9 €
  • Realty Income Corporation (O): 12,2 €
  • W.P.Carey (WPC): 39,0 €

To keep things as simple as possible, I have converted all currencies to Euros.

This year I have received 104,5 € in passive income, which is 3 % of new my annual goal (3 500 €). I guess I better start earning a lot more passive income if I want to reach my goal!

Passive Income

If you are interested to read more about my passive income history, you can access older reports for more details.

Dividend Increases

Three companies in my portfolio announced dividend increases in January:

  • Realty Inc. (O): +2,0 %
  • Telia (TELIA): +2,6 %
  • UPM-Kymmene (UPM): +13,0 %

These raises increase my projected annual income by 22,1 €Canadian Utilities also announced a dividend increase this month, but I really can’t include that to my calculations, since I bought my shares after the announcement.

Buys/sells

As I mentioned in the previous paragraph, I purchased 75 shares of Canadian Utilities (CU.TO) in January. You can read more about the purchase here.

Summary

The goals for 2019 look hard, but achievable. Market saw a small relief rally and as a result my portfolio value increased about 10 %. I didn’t receive that much passive income in January, but it has always been a slow month for me. Fortunately the coming months will be much better.

I would like to improve my sector allocation and buy stocks from industrial and consumer cyclical sectors, but I don’t know is it a smart move to do. It feels like we are in the late-cycle phase and these sectors usually don’t perform that well in recession.

I will try to write a separate post for my goals next time, because this post was a way longer than I anticipated. Thanks for reading!

How was your month? How much passive income did you receive? Please share your thoughts in the comment section below!

10 thoughts on “Passive Income – January 2019 / Goals for 2019

  1. DivHut Reply

    It is a dividend deluge with triple digits year over year gains. Keep buying and growing that passive income stream. Seeing your GILD payment I’m reminded of that holding in my own portfolio and how I’d like to add a bit more to that stock. Right now it’s a tiny piece of my pie. Strong start to 2019!

    • Dividend Deluge Post authorReply

      Thanks DH! GILD is a small piece of my portfolio too, but I think it has been a good purchase even though the stock has been performing poorly for years now. The dividend looks safe and they also announced a 10% dividend increase a few days ago!

  2. DivvyDad Reply

    That is some great growth you’ve had, and you’ve got to be happy seeing that nice pop on the chart for January. You’ve set some nice goals as well, and I am in agreement with you on trying to set aggressive goals that might be a bit of a stretch. I like the mention on trading fees too, as that is something that can easily be overlooked but can definitely have an impact.

    Looking forward to your progress on the goals and growth of the portfolio & dividends!

    • Dividend Deluge Post authorReply

      The recent YoY-growth has been nice for sure and I hope I can keep up the pace! I think that I had to set hard goals, because reaching easy goals doesn’t even feel like an achievement.

      Thanks for the comment!

  3. Snugfortune Reply

    Hi DD,
    I’ve recently discoved your blog and like it how you’ve managed to grow the income stream over the course of past few years.
    Interestingly we share some similarities in terms of some figures. So is your realized passive income of the last two years (2018 and 2017) exactly in line with my passive income targets for the next two years (2019 and 2020). I guess I’m two years behind you haha:)
    Congrats on your January results btw!
    Look forward to following your path in the future.
    Cheers

    • Dividend Deluge Post authorReply

      Hi SF and thanks for the comment!

      It’s always interesting to find people who are approximately in the same phase on their investing journey.
      I look forward to following your progress towards financial independence as well!

  4. Div.Income Reply

    Hi,

    nice income streams, I especially like your p2p income. I am as well invested at mintos but just a very small investment (250 EUR). What is your experience so far with this kind of investment?

    Cheers

    • Dividend Deluge Post authorReply

      Hi DI,

      It has been a very positive experience so far! My average interest rate has been 10,8 % and I have been purchasing loans with buyback guarantee. This means that the loan originator has to repurchase the investment, if the loan payment is delayed more than 60 days. They also have to pay the interest for the delayed time, so there is no default risk for me.

  5. Passivecanadianincome Reply

    nice deluge.

    Way to double up your income from last year.

    Those look like some nice goals and the sale of those norweign funds should propel you to that passive income goal.

    nice addition of cu.

    keep it up, all the best in 2019
    cheers

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