Passive Income October 2017

It’s time to summarize our passive income from October. It totaled $921.12 and came to us from three main streams dividends, rental property, and lending loop.

We are excited to see that our annual passive income may contribute to our financial security in the following ways:

  • It will make us millionaires within thirty years if we simply reinvest received income as described here.
  • Our passive income can populate our TFSA accounts with 11,000 CAD which is the maximum annual ammount for a spouse.
  • It almost covers our groceries needs.
  • We could spend it on a nice vacation abroad.
  • It would be enough to lease a car and pay for insurance and gas

Here is a breakdown of our October income streams:

Lending Loop

We received 46 CAD from seven companies. Unfortunately, one of the companies we lent to on Lending Loop has not made their scheduled October payment. It is not yet clear whether this is a one-time missed payment or the company will make future payments. We are currently invested in twenty companies on Lending Loop in the amount of 500 CAD each. The company that failed to make payment has a C+ rating on Lending Loop, what indicates above-average risk. Our current yield is 11.1% on an investment of 10,000 CAD. If 500 CAD will not be paid back, our yield will drop to 6%, which is bearable but marks investing on Lending Loop too risky. If another company ceases payments, we will profit very little if at all from this investment. We knew that investing on Lending Loop was risky and that we would need to closely monitor its performance. Once again, it proves that diversification is important. This is why we try to utilize as many income streams as we can.

Rental Property

We received 269.32 CAD from renting our property. There is nothing new to report on this front, though it is worth noting that this profit comes after paying the strata management fee, property tax and property management fees. It is good that there is no news here as it means that our tenants like our service, which provides them with a comfortable apartment in a concrete building with up-to-date amenities and a nice view.

Dividends

We received $605.39 in dividends from 12 companies.

wdt_ID Stock Dividends Tax
1 BNS 74.67 USD Taxable account. Canadian company.
2 BCE 72.47 CAD RESP account
3 CUF.UN 29.07 CAD TFSA (no tax)
12 VCN 5.00 CAD Taxable account
5 CNQ 47.30 CAD TFSA (no tax)
6 PSK 6.25 CAD TFSA (no tax)
7 NRZ 88.83 USD Taxable account. 86.79 is after 15% tax.
8 DRG.UN 19.68 CAD TFSA (no tax)
9 TRP 62.50 CAD TFSA (no tax)
10 TD 77.40 CAD RESP (no tax)

Here is how our October income from dividends increased over three years:

Passive Income

Conclusion

It’s amazing to make money while doing absolutely nothing. Actually, that is not quite correct; we have been receiving this income while watching TV, swimming in the pool, fishing, and spending time with our loved ones. As if that were not enough, dividends will increase over time due to DRIP and dividend hikes, the apartment will appreciate in price, and money received on Lending Loop will be reinvested to utilize compound interest.

Our investments work for us, and we are on our way toward living off this passive income!

6 Comments

  1. Marina November 16, 2017
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  3. DivHut November 26, 2017
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