Passive Income December 2018

Thanks to our steadily growing portfolio of stocks, bonds, options and savings accounts, 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 December 2018.

Passive Income Monthly
Passive Income Monthly

Last month, we earned €686.96 ($785) in passive income. That’s a 14% YoY increase compared to 2017 (last year: €603.70).

Our passive income included the quarterly dividend payments from British-Dutch oil and gas giant Royal Dutch Shell (€227.89), US electric and gas utility company Southern Co (€52.78) and US biotech company Gilead Sciences (€17.35).

Furthermore, several interest payments from different savings accounts at ING-DiBa, MoneYou and Hoist Finance (€32.07), Sberbank (€167.50) as well as Schwäbisch-Hall (€155.96) increased our cash position.

In December, we were also able to realize €33.41 in premiums by selling put options on Altria, British American Tobacco and Philip Morris.

We were also pleased to find out that one company increased its dividend. AT&T raised its DPS from $0.50 to $0.51 (+2.0%). This dividend increase will boost our annual passive income by $5.40.

Passive Income December 2018
Passive Income December 2018

In 2018, we earned exactly €3,651.91 in passive income (previous year: €2,041.53) or €304.33 per month (previous year: €170.13). Around 71% of our earnings came from dividends, 17% from interest payments and another 11% from option premiums.

Passive Income Total
Passive Income Total

Therefore, we over-accomplished our annual goal, which was to generate an average passive income of €250 per month. Thanks to the golden finish in December, our actual income even exceeded our initial target by a large margin. This makes me optimistic about 2019.

Recent portfolio additions in December 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 December, it was necessary to add to our STOXX Europe 600 and FTSE North America ETFs. Last month, we bought additional shares for €1,870.50.

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 December.

In 2019, we expect our passive income to hit €4,037.02. This would be an increase of 11% compared to 2018.

How did your passive income develop in 2018? Please let me know and leave a comment or get in touch on Facebook or Twitter!

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