Zolak
- 4 sources of passive income
- $848.52 from dividends
- 41 stocks/units dripped in January
- Trailing 12-Month Portfolio Return 2.11%
- S&P 500 12 Month Total Return -8.22% for January 2023
- S&P/TSX Composite Index 12 Month 0.69% January 2023
Raises/Cuts
Let’s start this off with the bad news we all knew it was coming.. Algonquin (AQN, AQN:CA) cut its dividend by 40%, a big cut, but honestly, I was expecting a 50% cut once the stock price tumbled and they mentioned they would be looking at their dividend. Their debt is a big concern and kinda seems like a canary in the coal mine situation in this interest rate environment. Will this dividend cut be enough to fix the situation? Time will tell. They still own the water and renewables though, so I’m holding on to this position.
Total forward dividends lost – 287.84
CNR (CNR:CA) – They announced their yearly raise in January like clockwork. The raise was lower than I was expecting (based on historical raises) but still was a nice 7.8% raise. This added $25.07 to their forward income.
APD (APD) – One of my best pickups in 2022 came through. Not only has this stock jumped from like 220 last year to over 300 but they also continue to raise that dividend. They raised their dividend 8%, adding an additional $23.92. Hydrogen continues to be an area I’m really excited about moving forward and they seem to be really well positioned for that moving forward.
Total Added Income from Dividend Raises in 2023 – Negative $238.85
Unfortunately, we start 2023 with negative forward income from raises and cuts. While our portfolio is full of better companies than when I first started, cuts can and do still happen.
January 2022 Dividend Income
9 Companies paid us this month.
| Stocks | January 2022 Income | January 2023 Income |
|---|---|---|
| RIT ETF (RIT:CA) | 66.35 (3 Drips) | sold |
| SmartCentres (OTCPK:CWYUF, SRU.UN:CA) | 33.45 (1 Drip) | sold |
| Restaurant Brands (QSR, QSR:CA) | 75.07 | sold |
| Bank of Nova Scotia (BNS, BNS:CA) | 105.00 (1 Drip) | sold |
| Nutrien (NTR, NTR:CA) | 27.99 | 31.21 |
| TELUS (TU, T:CA) | 87.09 (2 Drips) | 1.40 |
| Bell Canada | 140.88 (2 Drips) | 155.48 (2 Drips) |
| TD Bank (TD, TD:CA) | 117.48 (1 Drip) | 42.24 |
| Aecon (OTCPK:AEGXF, ARE:CA) | 0 | 116.55 (12 Drips) |
| TC Energy (TRP, TRP:CA) | 117.45 (1 Drip) | 159.30 (2 Drips) |
| Cisco (CSCO) | 51.06 | 53.58 (1 Drip) |
| XAW ETF (XAW:CA, XAW.U:CA) | 90.09 (2 Drips) | 82.68 (2 Drips) |
| Algonquin Power (AQN, AQN:CA) | 113.02 (6 Drips) | 206.08 (22 Drips) |
| Totals | 1,024.93 | 848.52 |
41 stocks/units Dripped in January.
Our dividend income is lower year over year as we sold a bunch of positions to pay off our heloc. The lower prices of Algonquin and Aecon (OTCPK:AEGXF, ARE:CA) really pumps up our drips though. This may be a record for drips.
Our Drips (Dividend Reinvestment Program) added $36.14 in future dividends.
Other Income
Private Investment Payment – $1000.00
1k a month, very nice!
Solar Panel Income
In December (we always get paid a month later), our solar panel system generated 115 kWh. Since we bring in a fixed rate of 28.8 cents per kilowatt hour, Hydro One (OTCPK:HRNNF, H:CA) deposited $27.98 into our chequing account this month.
Last December, the system generated $36.33, so we are slightly lower. Winter months for solar definitely don’t do much.
Total Income for 2023 – $27.98
System Installed January 2018
Total System Cost – $32,396.46
Total Income Received – $12,200.27
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Amount to Break even – $ –20,196.19
Slowly but surely. 5 Years of having the system and we have paid off 37.65% of the system. Definitely lower than what we were told the system would generate. Is it the tree or just a classic sales pitch of overpromise? Who knows, it is what it is. Bring on the summer!
Cash Back Credit Card
Every year in January, we get money from using our cashback credit card the previous year. We always pay our balances off, so this is bonus money. In January, we received $763.84. Sweet! A big jump from 2022, clearly, we are spending more…. Inflation?
Total January 2023 Passive Income – $2,640.34
January 2022 Passive Income – $2,257.44
While our dividend income is down, the overall passive income continues to increase. It’s a beautiful thing!
Totals For 2023
Dividends Year To Date Total – $848.52
Other Passive Income Year to Date – $1,791.82
Total Passive Income for 2023 – $2,640.34
Year-End Goal – $26,000
We ended 2022 with a passive income just over 24k. The goal for this year is 26k. Not a huge increase, but a solid one overall. I don’t want to be chasing yield just to achieve a higher income goal. Let’s get it!
January Stock Purchases
Let’s be honest, my buys have been extremely boring lately. I continued to grow our Microsoft (MSFT) position. During the last year, we grew our position from almost nothing to now a top 3 position. Currently, I think this is a full position now unless we see Microsoft under 200….
We added 7 more shares of Microsoft for $226.93 per share, adding $19.04 in forward income.
Bitcoin
As I mentioned at the start of this post, Bitcoin (BTC-USD) has been on a massive tear since the start of the year. With the FTX scandal in the rear mirror, crypto can run again. Just remember, all these scandals and stuff is always these crap coins… Personally, I’m only sticking with Bitcoin.
Total invested – $310
I decided to go with Shakepay because it is regulated in Canada and you shake the phone daily to get some free sats (bitcoin). I shake every day and with a 77-day streak, I’m now getting about 12 cents a day in free bitcoin.
Financial Goals Update
Charities
- We continue our monthly donation to The Nature Conservancy of Canada of $85.
ETF Monthly Minimum Purchase of $250
- This month, we added 6 more units of XAW ETF (XAW:CA, XAW.U:CA).
- Questrade* is great because it offers free ETF trades and cheaper stock trading options than most Canadian brokers. $250.00 a month would kill us if we needed to pay high trading fees.
January 2023 Passive Income Conclusion
The year starts off with lots of good news, but the Algonquin cut still hurts. It’s part of investing though, always stay diversified. The year is young, there is still plenty of time to set new highs in income.
Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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