Passive Income May 2018

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.

Passive Income Monthly
Passive Income Monthly

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).

Passive Income May 2018
Passive Income May 2018

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.

Passive Income Total
Passive Income Total

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.

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

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.

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

6 Replies to “Passive Income May 2018”

    1. Hi Rob,

      Thanks for stopping by! I always look forward to May, as it’s the month when most German companies pay out their annual dividend.

      Unfortunately, my wager on the Turkish lira didn’t turn out in my favor, that’s why my interest income was much lower than in 2017. However, I’m still very happy with the overall result.

      And I guess if there won’t be any big surprises, next May I’m gonna hit more than €500 ($600) in passive income just from organic portfolio growth.

      – David

  1. Hi David
    Congrats on that very good dividend month! Very solid businesses in your portfolio, all of them with the capability to grow and further increase their payouts over time.
    I am looking forward to Royal Dutch Shell‘s June dividend as well. And who knows, maybe there will be a dividend hike announced this year.
    Keep it up and all the best.
    Cheers

    1. Hi FS,

      It’s good to hear from you!

      I think you’re right. Although Shell’s dividend is still fairly high in absolute terms, it’s about time we see another dividend increase. I guess the last raise was more than 4 years ago…

      – David

    1. Hi DI,

      Yeah, you’re absolutely right! Although I prefer quarterly payments, it’s really nice to have some big annual dividends coming in. It’s just a pity that not every month can be like May…

      – David

Leave a Reply

Your email address will not be published.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