Passive Income August 2018

Thanks to our steadily growing portfolio of stocks, bonds and cash, we’re enjoying the benefits of a regular passive income. Once a month I keep track of our recent earnings. This is our update for August 2018.

Passive Income Monthly
Passive Income Monthly

Last month, we earned 496.82 ($575) in passive income. That is a 1,006% YoY increase compared to 2017 (last year: €44.92). At the same time, August was also our most profitable month in 2018.

Our passive income included the quarterly dividend payments from the world’s largest telecommunications company AT&T (€57.61) and US retail pharmacy and health care company CVS Health (€14.94) as well as the interim dividend from Danish insulin specialist Novo Nordisk (€30.09).

In addition, we surprisingly earned dividends from our STOXX Europe 600 (€230.10), MSCI North America (€120.13) and MSCI Pacific (€43.95) ETFs, as the fund manager recently switched its distribution policy from accumulating to distributing.

Passive Income August 2018
Passive Income August 2018

Since January, we earned exactly €2,060.70 in passive income (previous month: €1,563.88) or €257.59 per month (previous month: €223.41). Up to now, 90% of our earnings came from dividends and 10% from interest payments.

Passive Income Total
Passive Income Total

We just made a huge step towards our annual goal, which is to generate an average passive income of €250 per month. And September will be another fantastic month in terms of dividend income, as we not only expect the quarterly distributions from US utility and biotech companies Southern Co and Gilead Sciences as well as the interim dividend from Japanese tobacco group Japan Tobacco, but also the dividend payment of our largest holding Royal Dutch Shell.

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

Recent portfolio additions in August 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 August, it became necessary to add to our STOXX Europe 600 ETF. Last month, we bought additional shares for €606.00.

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

Our passive income for 2018 is now expected to hit €3,157.53 (previous estimate: €2,758.98). That would be an increase of 55% compared to 2017.

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

2 Replies to “Passive Income August 2018”

  1. Huge payout by the Europe Stoxx wow! Can’t wait to see your Shell payout, must be quite nice to look forward too! I’m looking to buy into Shell at slightly lower prices myself! Thanks for sharing the update, keep it up.

    DI

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