Passive Income October 2018

Thanks to our steadily growing portfolio of stocks, bonds, cash and options, we’re enjoying the benefits of a regular passive income. Once a month I keep track of our recent earnings. This is our update for October 2018.

Monthly Passive Income
Monthly Passive Income

Last month, we earned 110.75 ($125) in passive income. That is a huge increase compared to last year, when we had no capital income at all. However, October was again one of our least profitable months.

Our passive income included the dividend payment from our STOXX Europe 600-tracking ETF (€3.01). Furthermore, we are now showing our realized profits from option trading, which we only started 2 months ago.

In September, we were able to realize €12.00 by selling two put options on JD.com. In October, we earned another €107.74 by writing puts on 3M, Alibaba, Hanesbrands, Illinois Tool Works, JD.com, Tesla and Twitter.

Passive Income October 2018
Passive Income October 2018

Since January, we earned exactly €2,614.67 in passive income (previous month: €2,482.13) or €261.47 per month (previous month: €275.79). Up to now, around 86% of our earnings came from dividends, 10% from interest payments and another 4% from option premiums.

Total Passive Income
Total Passive Income

We remain on track for our annual goal, which is to generate an average passive income of €250 per month. We don’t expect any huge dividend payments in November. However, this shouldn’t put us too much behind schedule.

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

Recent portfolio additions in October 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 October, it became necessary to add to our STOXX Europe 600 and FTSE North America ETFs. Last month, we bought additional shares for €2,292.44.

Our ETF portfolio is complemented by a high-yielding stock portfolio, which we manage according to our own stock screener. In October, we added to Novo Nordisk. In total, we bought 125 shares for which we paid €4,694.09.

Our passive income for 2018 is now expected to hit €3,307.36 (previous estimate: €3,168.09). That would be an increase of 62% compared to 2017.

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

4 Replies to “Passive Income October 2018”

    1. Thanks for stopping by DI!

      Selling put options can be a relatively safe way to earn some extra cash, especially if you limit yourself to stocks that you would be happy to own anyway.

      What I’m currently doing is to sell put options on stocks that have recently seen a heavy price drop, whereby I particularly focus on such options that are deep out of the money. By doing that, I’m able to limit my risk even further.

      My first 3 months of option trading have been a good experience so far. On the one hand, I was already able to realize €400, which is certainly not too bad for the beginning. On the other hand, I got my hands on BAT with a huge discount.

      Happy to hear about your experiences, too!

      – David

  1. Excellent report David! Good work.

    Your strategy of selling puts seems to be working very well, and I like your portfolio construction with a combination of funds and individual stocks ( as I have mentioned before, this is very similar to my portfolio).

    Looks like you are on track for a successful year. Congratulations!

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