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.
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.
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.
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.
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.