Thanks to our steadily growing portfolio of stocks, bonds and cash, we’re enjoying the benefits of a regular passive income. In May, we earned €475.62 ($560). This was our most profitable month in 2018.
German dividends coming in
In May, our passive income included the yearly dividend payments of German insurance company Allianz (€96.00), German premium car manufacturer BMW (€120.00), German healthcare group Fresenius (€12.00) and Europe’s largest software manufacturer SAP (€16.80). On top of that, we got the quarterly dividends of the world’s largest telecommunications company AT&T (€56.09) and US retail pharmacy and health care company CVS Health (€14.54).
We were also happy to see that two companies increased their dividends. Allianz raised its DPS from €7.60 to €8.00 (+5.3%) and BMW from €3.50 to €4.00 (+14.3%). In addition, we recevied the annual interest payment of our Turkish lira bond (€160.19).
By the end of May 2018, we made exactly €1,197.65. This corresponds to an average passive income of €239.53 per month (previous month: €180.51) or €2,874.36 calculated on an annual basis. Up to now, 84 percent of the revenues were accounted for by dividends and 16 percent by interest payments.
Once again, we moved slightly closer to our annual goal, which is to generate an average passive income of €250 per month. And thanks to Royal Dutch Shell, June will be another good month in terms of dividend income.
Recent portfolio additions in May 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 May, 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 May.
Our passive income for 2018 is now expected to hit €2,764.68 (previous estimate: €2,773.90). That would be an increase of 35.4% compared to 2017.