Passive Income June 2018

Thanks to our steadily growing portfolio of stocks, bonds and cash, we’re enjoying the benefits of a regular passive income. In June, we earned 366.23 ($430). This was one of our 3 most profitable months in 2018.

Passive Income Monthly
Passive Income Monthly

Energy is dominating

In June, our passive income included the quarterly dividend payments of British-Dutch oil and gas giant Royal Dutch Shell (€223.90), US electric and gas utility company Southern Co (€50.96) and US biotech company Gilead Sciences (€17.16). In addition, my DAX-tracking ETF (€52.40) paid out its dividend in June as well. Furthermore, MoneYou increased my cash position thanks to quarterly due day-to-day interest (€21.81).

We were also happy to see that one company increased its dividend. Southern Co raised its DPS from $0.58 to $0.60 (+3.4%).

Passive Income June 2018
Passive Income June 2018

In the first half-year of 2018, we made exactly €1,563.88. This corresponds to an average passive income of €260.65 per month (previous month: €239.53) or €3,127.76 calculated on an annual basis. Up to now, 86 percent of the revenues were accounted for by dividends and 14 percent by interest payments.

Passive Income Total
Passive Income Total

In terms of our annual goal, which is to generate an average passive income of €250 per month, we’re now right on target. However, we don’t expect any dividend or interest payments in July. This will definitely set us back a bit.

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

Recent portfolio additions in June 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 June, 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 June.

Our passive income for 2018 is now expected to hit €2,798.18 (previous estimate: €2,764.68). That would be an increase of 37.1% compared to 2017.

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

2 Replies to “Passive Income June 2018”

  1. Hi David,

    Great summary and congratulations on your nice passive income. I’m sure, that you will achieve your goal for 2018.

    I only received 5.84€ in dividends in June which is actually a pretty weak month for me. I also earned some interest payments from MoneYou.

    I got a question, how many years have you been building your portfolio so far? I’m also curious what your target monthly passive income would be before you quit your job.

    Best wishes
    Sir Budget

    1. Hello Sir Budget and welcome to our blog Jung in Rente.

      First of all, thank you very much for your comment! I always appreciate any kind of constructive feedback.

      June has indeed been a very good month for us. However, we currently don’t have any stock in our portfolio that pays out its dividend in July. So, our average passive income for 2018 will drop a bit in the foreseeable future.

      Concerning your 1st question, it’s hard to give you an exact date. I started to invest in equity funds around my 16th birthday. However, if we are just talking about our current dividend portfolio, we bought our first stock on August 26, 2015, which was Royal Dutch Shell by the way. That being said, I think it’s also worth mentioning that we don’t really invest on a regular basis. That’s why we currently still have a fair bit of cash on the sideline.

      Regarding your 2nd question, there is no precise amount that we have in mind. As you correctly stated, our final goal is to achieve financial independence and retire early. To get an idea of how much passive income we need before we could quit our jobs, we started to track our expenses (only available in German) back in January 2015.

      By looking at our average expenses since then, we would need about €2,350. But this number is somewhat dynamic, as it changes with every additional month that we continue to track our monthly expenses. I certainly don’t expect any tremendous changes in our spending habits. However, I would make sure that we have some kind of financial buffer before retiring. So, I guess €2,500 is the closest thing in terms of a target monthly passive income (also only available in German) that I could think of at the moment.

      I hope I was able to answer all of your questions.

      – David

Leave a Reply

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