Passive Income March 2018

Thanks to my steadily growing portfolio of stocks, bonds and cash, I’m enjoying the benefits of a regular passive income. In March, I earned441.31 ($545). This was my best result in 2018.

Passive Income Monthly
Passive Income Monthly

Old Economy surpasses New Economy

In March, my passive income included six dividend and interest payments. The major part of those earnings came from old-economy companies. It included the quarterly dividend payments of British-Dutch oil and gas giant Royal Dutch Shell (€216.17) and US electric and gas utility company Southern Co (€46.92) as well as the final dividend of Japanese tobacco group Japan Tobacco (€79.80). However, new-economy companies like US biotech company Gilead Sciences (€16.13) and Danish insulin specialist Novo Nordisk (€48.72) also paid out their quarterly or half-yearly dividend last month.

I was also happy to see that two companies increased their dividends. Gilead Sciences raised its DPS from $0.52 to $0.57 (+9.6%) and Novo Nordisk from DKK4.60 to DKK4.85 (+5.4%). In addition, MoneYou credited my savings account with its quarterly interest payment (€33.57).

Passive Income March 2018
Passive Income March 2018

In Q1 2018, I made exactly €509.33. This corresponds to an average passive income of €169.78 per month (previous month: €34.01) or €2,037.32 calculated on an annual basis. More than 90 percent of the revenues were accounted for by dividends and less than 10 percent by interest payments.

Passive Income Total
Passive Income Total

After the first three months of 2018, my annual goal, which is to generate an average passive income of €250 per month, is becoming more realistic again. Unfortunately, there is only one company in my portfolio which is going to pay out its dividend in April – the German premium carmaker Daimler.

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

Recent portfolio additions in March 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 March, it became necessary to add to my STOXX Europe 600 and MSCI North America ETFs. In total, I had to buy additional shares for €1,317.73.

My ETF portfolio is complemented by a high-yielding stock portfolio, which I manage according to my own valuation metric. On March 16, I made use of a special offer by the Frankfurt Stock Exchange, as it allowed everybody to order shares of the 30 largest German companies free of charge.

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On the one hand, I added to my existing positions in the premium carmakers BMW and Daimler as well as in the world’s largest reinsurer Munich Re. On the other hand, I initiated new positions in the global healthcare group Fresenius and the largest European software manufacturer SAP. I bought shares for just over €1,000 of each of those five German companies.

Including last month’s portfolio additions, my passive income for 2018 is now expected to hit €2,763.46 (previous estimate: €2,364.36). That would be an increase of 35.4% compared to 2017.

How did your passive income develop in Q1 2018? Please let me know and leave a comment or get in touch with me on Facebook or Twitter!

2 Replies to “Passive Income March 2018”

  1. Quite a portfolio you have here to generate such a solid passive income 🙂
    I am so far a way for reaching targets like yours. For now my only passive income is from P2P and few stocks. Dividends are my weak part right now but looking forward for improvement.
    See you next time, David!

    1. Hi GNB,

      Thanks for your comment. I just noticed that “Jung in Rente” is on your blog roll, too. I really appreciate that!

      After looking at your blog and reading about your goals, I think our plans to retire early are similar. Just be frugal and put your savings in worthwhile investments and you should be able to leave the rat race well before the age of 65.

      If this blog can be of any help to you, I’m more than happy to contribute to your targets.

      – David

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