Igor Alecsander/E+ via Getty Images
Start the bus, it’s time for the kids to go back to school!
September, what a month. The market is continuing its downward trend and we sold off a tonne of stocks midway. Killed our forward income, but so far, seems like it’s been a great move. Almost all the stocks we sold are way down and it feels good to be debt-free once again. Feel free to read that post here.
Raises
After a couple of months of no raises, this month brought in some nice ones.
- Texas Instruments (TXN) started it off with a 7.8% raise. This adds $9.20 to that forward income.
- Fortis (FTS) (FTS:CA) came through with a 6% boost, which adds $27.36 to that income.
- Lockheed Martin (LMT) increased theirs by 7.1%, adding $17.60 to their dividend income.
- Microsoft (MSFT) rocked the largest raise, increasing their dividend by 10%. Boosting our income by $7.20.
Love seeing 4 different raises all north of 6%. This is how the compounding really grows and increases shareholders’ confidence in them. Microsoft and Texas are near the top of my buy list for stocks right now.
All in all, these raises added $61.36 to our forward income.
Total Added Income from Dividend Raises in 2022 – $381.47
September 2022 Dividend Income
13 Companies paid us this month.
| Stocks | September 2021 Income | September 2022 Income |
|---|---|---|
| RIT (RIT:CA) ETF | 65.54 (3 Drips) | sold |
| Canadian Utilities (OTCPK:CDUAF) (CU:CA) | 94.12 (2 Drips) | sold |
| 3M (MMM) | 32.56 USD | sold |
| IBM (IBM) | 45.92 USD | sold |
| MSFT | 10.64 USD | 18.60 USD |
| Lockheed Martin (LMT) | 46.80 USD | 61.60 USD |
| Stanley Black & Decker (SWK) | 12.00 USD | |
| Home Depot (HD) | 19.00 USD | |
| JNJ | 45.58 USD | 75.71 USD |
| Couche-Tard (OTCPK:ANCUF) (OTCPK:ANCTF) (ATD:CA) | 5.95 | 18.70 |
| Canadian National Railway (CNI) (CNR:CA) | 59.04 | 79.84 |
| Manulife Financial (MFC) (MFC:CA) | 37.24 (1 Drip) | 138.93 (6 Drips) |
| SmartCentres (OTCPK:CWYUF) (SRU.UN:CA) | 32.84 (1 Drip) | 35.92 (1 Drip) |
| Brookfield Renewable (BEP) | 86.23 (1 Drip) | 114.12 (2 Drips) |
| Suncor (SU) (SU:CA) | 191.29 (4 Drips) | |
| Fortis (FTS) (FTS:CA) | 0 | 120.91 (2 Drips) |
| Enbridge (ENB) (ENB:CA) | 239.65 (3 Drips) | 257.14 (3 Drips) |
| Totals | 804.02 | 1143.76 |
18 stocks Dripped in September.
$339.74 more than last year. A 42.25% increase year over year. Amazing but with all our recent sales, this number will surely drop next quarter.
Our Drips (Dividend Reinvestment Program) added $34.69 to our yearly forward dividends this month. A beautiful thing.
Other Income
Private Investment Payment – $1000.00
1k a month, straight to the HELOC.
Solar Panel Income
In August (we always get paid a month later), our solar panel system generated 959 kWh. Since we bring in a fixed rate of 28.8 cents per kilowatt hour, Hydro One (OTCPK:HRNNF) (H:CA) deposited $271.05 into our chequing account this month.
Last August, the system generated $287.43, so we are slightly lower this month. Not bad considering the last couple months have been higher.
Total Income for 2022 – $1,897.57
System Installed January 2018
Total System Cost —– $32,396.46
Total Income Received —– $11,782.79
_____________________________________________
Amount to Break even —– $-20,613.67
Total September 2022 Passive Income – $2,414.81
September 2021 Passive Income – $1,661.44
A 45.34% increase year over year. Even better considering we had a Questrade-affiliate bonus last year of 70 bucks. Kinda insane actually….
Totals For 2022
Dividends Year To Date Total – $8,269.68Other Passive Income Year to date – $10,101.73Total Passive Income for 2022 – $18,371.41Year-End Goal – $25,000
Well, we have officially surpassed last year’s total passive income with 3 months remaining. Wonderful! That year-end goal may be hard to hit now though after selling off to pay off the HELOC, but you never know…
September Stock Purchases/Sales
This month, we made the hard decision to deleverage the portfolio completely. We sold off a tonne of stocks. I just felt the risk/reward at this current time didn’t make sense. I explained my thinking and all my sales in this post – Deleveraging. It’s unfortunate as it totally killed our forward income, but at the same time, the math worked out to pay things off and I just don’t see anything bullish in the market at the moment. So far, it’s worked out well as these stocks generally keep dropping and the Feds keep saying they will continue raising rates.
After this sell-off, we did make one purchase though.
Stanley Black & Decker (SWK) (SWJ)
We added 12 more shares to our holding recently at around 78 bucks per share. A dividend king that, let’s be honest, reported a horrible quarter. The stock got absolutely killed because of it. The stock price is down 58.90% year to date… It now sports a massive 4.13% starting yield.
Morningstar gives it a fair value of $168.20 and it currently trades at $77.53. That’s a lot of upside! RBC actually thinks they currently offer a 29% rate of return for the next 5 years based on their projected earnings.
Management has a plan to fix things and no lawsuits beating the company down. We may just continue shoveling money into this position at these levels. These 12 shares added $38.40 in forward income.
Financial Goals Update
Charities
- We continue our monthly donation to The Nature Conservancy of Canada of $85.
Increase Dividends by $4285.81 this year. (bringing our forward income from dividends to $13,000 a year)
Unfortunately, I’m going to disregard this now. While we could have been really close to hitting this, things changed. I’m not as bullish on the market and with interest rates doubling in 6 months (and still growing), I decided to pay off all our HELCO which we used for investing. As long as the forward passive income is higher at year end vs last year, it’s all good!
ETF Monthly Minimum Purchase of $250
- This month, we added 9 more units of XAW (XAW:CA) ETF.
- 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.
September 2022 Passive Income Conclusion
A good month. Another quick one to be honest. Lots of changes in the investment front but I feel good about the moves and notice I am sleeping better. That itself makes it worth it.
If I cannot do great things, I can do small things in a great way – Martin Luther King Jr
Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.
Be the first to comment