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