July 2023 Passive Income Update
Summary
- Our portfolio has underperformed the market once again this month year-over-year but beat out the TSX.
- We sold off our Stanley Black & Decker position for an 11% profit.
- We trimmed down our Microsoft position.
- With the USD funds we had from the sales, I decided to pump up our Home Depot position.
Anastasiia Yanishevska
July 2023 Passive Income Update
- 3 sources of passive income
- $879.81 from dividends
- 30 stocks/units dripped in June
- Trailing 12-Month Portfolio Return +3.20%
S&P 500 12-Month Total Return +13.02% for July 2023
S&P/TSX Composite Index 12 Month +1.86% August 22nd, 2023
Our portfolio has underperformed the market once again this month year-over-year but beat out the TSX. These interest rate-sensitive stocks have taken a beating recently. It's tempting to add to them more at the moment.
Alright, Let’s Get To Our July 2023 Passive Income
Raises/Cuts
Last month was a quiet month once again for dividend announcements.
Total Added Income from Dividend Raises in 2023 - Negative $-48.24
Still underwater from that 1 dividend cut this year… Soon enough, we will be positive though.
July 2023 Dividend Income
9 companies paid us this month.
| Stocks | July 2022 Income | July 2023 Income |
|---|---|---|
| Restaurant Brands (QSR) | 100.87 (1 Drip) | sold |
| RIT ETF (RIT:CA) | 67.56 (3 Drips) | sold |
| Bank of Nova Scotia (BNS, BNS:CA) | 110.21 (1 Drip) | sold |
| Smart Centers | 35.61 (1 Drip) | sold |
| Couche-Tard (OTCPK:ANCTF, ATD:CA) | 16.50 | 26.74 |
| Nutrien (NTR, NTR:CA) | 29.69 | 42.10 |
| Aecon (OTCPK:AEGXF, ARE:CA) | 113.04 (8 Drips) | 120.25 (9 Drips) |
| Cisco (CSCO) | 52.82 (1 Drip) | 55.77 (1 Drip) |
| TELUS (TU, T:CA) | 135.10 (4 Drips) | 30.18 (1 Drip) |
| Algonquin Power (AQN, AQN:CA) | 196.23 (11 Drips) | 125.88 (12 Drips) |
| TD Bank (TD, TD:CA) | 170.88 (2 drips) | 120 (1 Drip) |
| TC Energy (TRP, TRP:CA) | 155.70 (2 Drips) | 169.26 (3 Drips) |
| Bell Canada | 151.80 (2 Drips) | 189.63 (3 Drips) |
| Totals | 1336.01 | 879.81 |
30 stocks/units dripped in July.
Lots of drips but the income has dropped quite a bit. That’s understandable though as we sold off lots of stocks to pay off our HELOC last fall.
Our Drips (Dividend Reinvestment Program) added $41.49 bucks to our forward income. Nice!
Other Income
Private Investment Payment - $1000.00
1k a month, very nice!
Solar Panel Income
In June (we always get paid a month later), our solar panel system generated 1,144 kWh. Since we bring in a fixed rate of 28.8 cents per kilowatt hour, Hydro One (OTCPK:HRNNF, H:CA) deposited $329.65 into our chequing account this month.
Last June, the system generated $386.83, so this month has brought less sun. Kinda expected as we have gotten more rain this season than anytime I have ever remembered.
Total Income for 2023 - $1,193.87
System Installed January 2018
Total System Cost - $32,396.46
Total Income Received - $13,366.16
_____________________________________________
Amount to break even - $-19,030.30
Bring on the sun!
Total July 2023 Passive Income - $2,209.46
June 2022 Passive Income - $2,7,22.84
Down as well but over 2.2k is still very sweet!
Totals For 2023
Dividends Year To Date Total - $5,428.96
Other Passive Income Year to date - $8,957.71
Total Passive Income for 2023 - $14,386.67
Year End Goal - $26,000 (55.33%)
7 months in and we continue to be behind the goal. Setting them high and missing is better than being low and hitting I guess. 5 months left though!
July Stock Purchases/Sales
This month, we made 2 purchases and 2 sales.
Sales
We sold off our Stanley Black & Decker (SWK) position for an 11% profit. I just didn’t find myself wanting to add to this position anymore and the stock took off a bit so we sold out. We sold 27 shares at 98.91 per share, losing $87.48 in forward income.
We trimmed down our Microsoft (MSFT) position. I know crazy! You never sell Microsoft. I hear you all, but at a 39 P/E ratio, I thought it would be a good idea to just take some profits. The AI hype drove this position to 8.4% of our portfolio and I wanted to lower our exposure and add to another US position. We sold 8 shares at $362.49 per share, losing $21.76 in forward income. Microsoft is still in our top 3 holdings.
Purchases
With the USD funds we had from the sales, I decided to pump up our Home Depot (HD) position. Love the company and its dividend growth. Also, if you know me, I love Halloween, in particular, Halloween animatronics. This year, HD came out swinging, and out of all the main retail stores, I think it's safe to say HD has the best ones out there. Such a small factor in their business, I know, but you gotta own the companies you like!
We bought 19 additional shares for $316.48 per share, adding $158.84 in forward income.
TELUS (TU, T:CA) - We continued to build back our position in TELUS. We bought 87 shares at $23.80 per share. This purchase adds $126.53 in forward income.
All in all, we added $176.13 in future yearly dividend income with these purchases. And eliminated a holding in our portfolio.
Total added forward dividend income from purchases in 2023 - $797.25.
Bitcoin
Bitcoin pulled back a bit the last month but we continue to add 20 bucks a week to our position.
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 0 more units of XAW ETF (XAW: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.
- * Note the Questrade link is an affiliate link and at no additional cost to you, I would get a little payment if you were to sign up. You could get $50 in free trades by using my affiliate link, though.
We didn’t add this month as I felt like our purchases offered a better opportunity at the moment.
July 2023 Passive Income Conclusion
Overall, a great month and a fun summer with the family. Time is flying by as we quickly approach September already. Just crazy!
Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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