Passive Income February 2018

Thanks to my steadily growing portfolio of stocks, bonds and cash, I’m enjoying the benefits of a regular passive income. In February, I earned €68.02 ($85). That’s a much better result than in January.

Passive Income Monthly
Passive Income Monthly

First dividend payments in 2018

In February, my passive income included the quarterly dividends of the world’s largest telecommunications company AT&T (€54.03) and US retail pharmacy and health care company CVS Health (€13.99).

However, due to the recently announced $69 billion acquisition of US health insurance company Aetna, CVS will neither increase its dividend nor continue its share buyback program for the time being.

Passive Income February 2018
Passive Income February 2018

The above-mentioned dividend payments by AT&T (T) and CVS Health (CVS) were my first investment earnings in 2018. Up to now, I made exactly €68.02. This corresponds to an average passive income of €34.01 per month (previous month: €0.00) or €408.12 calculated on an annual basis.

Passive Income Total
Passive Income Total

Therefore, it’s still a long way to go until I reach my goal for 2018, which is to generate an average passive income of €250 per month. However, I already look forward to the first quarterly dividend payment of Royal Dutch Shell, which is supposed to boost my investment earnings in March.

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

Recent portfolio additions in February 2018

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

At its core stands a broadly diversified ETF portfolio, which I manage through value averaging. In February, it became necessary to add to my STOXX Europe 600 and MSCI North America ETFs. In total, I had to buy additional shares for €1,715.76.

My ETF portfolio is complemented by a high-yielding stock portfolio, which I manage according to my own valuation metric. However, I didn’t initiate any new position in February.

Including last month’s portfolio additions, my passive income for 2018 is now expected to hit €2,364.36. That would be an increase of 15.8% compared to 2017.

What do you think of CVS’ intention to avoid dividend increases in the short term? Please let me know and leave a comment or get in touch with me on Facebook or Twitter!

Leave a Reply

Your email address will not be published. Required fields are marked *