Thanks to our steadily growing portfolio of stocks, bonds and cash, 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 September 2018.
Last month, we earned €421.43 ($490) in passive income. That is a 36% YoY increase compared to 2017 (last year: €310.75). At the same time, September was also one of our 4 most profitable months in 2018.
Our passive income included the quarterly dividend payments from British-Dutch oil and gas giant Royal Dutch Shell (€229.20), US electric and gas utility company Southern Co (€51.47) and US biotech company Gilead Sciences (€16.98) as well as the interim dividend of Japanese tobacco group Japan Tobacco (€87.03). In addition, my DAX-tracking ETF (€4.80) paid out its dividend in September, too. Furthermore, MoneYou and Hoist Finance increased my cash position thanks to quarterly due day-to-day interest (€31.95).
We were also happy to see that one company increased its dividend. Japan Tobacco raised its DPS from ¥70 to ¥75 (+7.1%).
During the first three quarters of 2018, we earned exactly €2,482.13 in passive income (previous month: €2,060.70) or €275.79 per month (previous month: €257.59). Up to now, around 90% of our earnings came from dividends and 10% from interest payments.
We just made another huge step towards our annual goal, which is to generate an average passive income of €250 per month. However, we don’t expect any dividend or interest payments in October. This will put us a bit behind our goal again.
Recent portfolio additions in September 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 September, no purchase was necessary here.
Our ETF portfolio is complemented by a high-yielding stock portfolio, which we manage according to our own stock screener. However, we also didn’t initiate any new position here in September.
Our passive income for 2018 is now expected to hit €3,168.09 (previous estimate: €3,157.53). That would be an increase of 55% compared to 2017.