Passive Income April 2018

Thanks to our steadily growing portfolio of stocks, bonds and cash, we’re enjoying the benefits of a regular passive income. In April, we earned212.70 ($260). After the abundant capital inflow in March, this time only two of our portfolio companies paid out a dividend.

Passive Income Monthly
Passive Income Monthly

From Stuttgart and Munich with Love

In April, our passive income included the yearly dividends of the German premium car and truck manufacturer Daimler (€109.50) and the world’s largest reinsurer Munich Re (€103.20).

After doubling both positions in March, we were very happy to see that Stuttgart-based Daimler raised its dividend per share from €3.25 to €3.65 (+12.3%).

Passive Income Monthly
Passive Income Monthly

By the end of April 2018, we made exactly €722.03. This corresponds to an average passive income of €180.51 per month (previous month: €169.78) or €2,166.09 calculated on an annual basis. Up to now, 95 percent of the revenues were accounted for by dividends and 5 percent by interest payments.

Passive Income Total
Passive Income Total

We obviously moved slightly closer to our annual goal, which is to generate an average passive income of €250 per month. And the next dividends are fortunately not that far away, as many of our German portfolio companies pay out their dividends only once a year in May.

Passive Income Target-vs.-Actual
Passive Income Target-vs.-Actual

Recent portfolio additions in April 2018

On our way to financial independence we constantly try to improve our income situation. To that end, we pursue a twin-track investment strategy.

At its core stands a broadly diversified ETF portfolio, which we manage through value averaging. In April, no additions were necessary.

Our ETF portfolio is complemented by a high-yielding stock portfolio, which we manage according to our own valuation metric. However, we didn’t initiate any new position in April.

Our passive income for 2018 is now expected to hit €2,773.90 (previous estimate: €2,763.46). That would be an increase of 35.9% compared to 2017.

How did your passive income develop in April? Please let me know and leave a comment or get in touch with me on Facebook or Twitter!

8 Replies to “Passive Income April 2018”

  1. You’re very early in posting the monthly update, I love this period of the month to see all the progress everyone has made! That’s a hefty increase from Daimler, congratulations! Also, averaging €155 a month so far this year that’s so amazing! Keep killing it!

    DI

    1. Hi DI,

      Thanks for your comment. As I knew from the beginning, that only one of our portfolio companies would pay out its dividend, I could have published our monthly passive income update even earlier. How was your April?

      – David

  2. Hey David congrats!

    Nice income and some solid dividend raises especially after doubling up your position.
    Interesting how some companies only pay out once a year. Guess may will be a sweet month for ya!

    keep it up
    Cheers

    1. Hi Rob,

      It’s great to have you here on my blog!

      I actually have no clue why German companies pay out their dividends only once per year. I would really appreciate if they could change the frequency at least to semi-annual payments. Nevertheless, the dividend yield of most of our German portfolio companies is pretty decent. So, I don’t want to complain.

      – David

    1. timeinthemarket – thanks for stopping by!

      Shouldn’t there be any unexpected dividend cuts, I guess we will actually be able to reach our annual goal this year. All it needs is another €5,000 position in a dividend stock with a 4-5% yield. I’m already excited which company will put us beyond an annual income of €3,000. What is your favorite dividend stock now?

      – David

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