Q3 is over

A lot happened as the quarter ended.

We were able to increase our net investment portfolio by 6,77% during the third quarter. The cash in the investment accounts went down a bit. Our stock portfolio rose 6,39% and loans went down by 4,72%. We are going to right direction. Below is the updated investment portfolio.

Investment portfolio

Asset class	1st Oct 19	31st Dec 19	1st Apr 20	1st Jul 20	1st Oct 20
Cash	N/A	1 799,70 €	1 344,51 €	781 €	596,23 €
Investment funds	10 725,61 €	10 478,22 €	10 478,22 €	10 377,73 €	10 383,21 €
Coop memberships	1 500 €	1 500 €	1 500 €	1 500 €	1 500 €
Shares	119 731,61 €	124 914,13 €	98 487,31 €	132 343,57 €	140 797,57 €
Gross investment portfolio	131 957,22 €	138 692,05 €	111 810,04 €	144 922,11 €	151 777,01 €
Investment loan	7 657 €	7 018 €	6 166 €	25 740 €	24 525,88 €
Net investment portfolio	124 300,22 €	131 674,05 €	105 644,04 €	119 182,11 €	127 251,13 €

At the beginning of October it was time to make our monthly investment loan payment. We paid back 500,89 € of principal and 24,89 € interests and fees.

This week we bought 17 shares of AT&T @28,785 USD and 6 shares of LTC Properties @36,6832 USD. These will increase our 2020 dividend income approximately by 10 €.

This week we received dividends from following companies:

Last day of September:

• 9,88 € from LTC properties
• 12,69 € from Transalta Renewables
• 1,76 € from Methanex

We did not receive Pepsi Co dividend on 30th September since our bank failed again to deliver it to us. It also failed to deliver the dividends that should have been paid on the first day of October. 

On the second day of October we received:

• 19,25 € from Coca-Cola
• 3,24 € from Genuine Parts
• 29,49 € from Iron Mountain Inc

So we are still missing our Pepsi Co dividends. We received total of 401,33 € in September. Not too bad but still missed the target. Currently we are 174,33 € behind the target pace, but considering the situation we are pleased. We will not reach the target but we get pretty close. In October we have now collected 52,16 € dividends. 

 

 

Fourth week of September

A pretty quiet week. We did small restructuring in our portfolio during the week and we received some dividends. We sold our position in Kojamo @19,18 € and we reinvested the money to 83 shares of AT&T @28,6365 USD. We bought Kojamo @ 8,50 € so we realised 125,3 % profit. The reason for the change was that Kojamo's price has risen too high compared to its dividend. This move will increase our 2020 dividend income approximately by 31 € and for 2021 by 84 €. 

Dividends received this week:

•  On Tuesday 41,94 € from Blackrock. 

• On Wednesday 1 share of Main Street Capital as a DRIP @30,34 USD and remainder 5,18 €. 

So far we have received 377 € dividends in September and we will receive around 35 € before month is over. So, again we do not meet the target but we are getting close. The year 2020 target is really lost, but we are doing better than expected. 

3rd week of September

Again one week is behind. We received  nice amount of dividends this week. And we finally received the taxes back from Norway. We recorded the amount as dividend from Ocean Yield.  Norwegian Tax authority paid us 24,74 €. On Tuesday we received following dividends:

• 10,32 € from Exchange Income
• 6,54 € from Inter Pipeline
• 20,81 € from Realty Income Corp
• 27,87 € from Monmouth Real Estate Investment Corp

On Wednesday we received:

• 69,02 € from Duke Energy and
• 1,46 € from Main Street Capital

So total dividends were 160,76 €. We also reinvested dividends right away. We bought 25 shares of AT&T @29,4304 USD. This will increase 2020 dividend income by 9,36 €. We sold our position at Accor SA @24,18 €. We realised small profit on sell, but we do not follow these profits. 

We also noticed that Realty income increased dividends by 0,2 %. This will increase our dividend income by 0,15 € but we might lose it because of currency fluctuations. 

Our September dividends now exceeds the 2019 September dividends. We have now collected 295,92 € dividends in September.

 

 

Second week of September

We were quite active on second week of September. On Tuesday we received 14,24 € from Southern CO and 26,79 € from Johnson & Johnson. On Thursday we received 17,55 € from Whitestone REIT and 13,71 from Exxon Mobil. 

We reinvested our dividends and we bought 2 shares of LTC Properties @37,0872 USD. This will increase our 2020 dividend income approximately by 1,09 €. We bought 1 share of Iron Mountain @30,2091 USD. This will increase our 2020 dividend income 0,44 €. 

In September we have collected 135,16 € dividends. We will fall behind the target this month. Also Nordea annouced that it will not pay dividends this year, and board will make decision of 2019 dividend payment in January 2021. This was our last hope to reach 2020 target. Now it is certain that we will not reach the target of 5300 €. We probably end up to 5000 €, which is still better than dividends received in 2019. 

 

 

First week of September

New month started. This week we received last dividends of August and first dividends of September. We also paid our investment loan installment. We paid back 500,1 € principal and 25,84 € interests and fees. 

On Monday we received 9,46 € from LTC Properties and 19,97 CAD from Transalta Renewables Inc, which is approximately 12,82 €. So final amount of dividends in August was 411,26 €. On Tuesday we received first dividends of September. We received 33,30 CAD from Canadian Utilities which is approximately 21,37 €. Last dividends of the week were paid on Wednesday by Genworth MI Canada. We received 64,27 CAD which is 41,50 €.

We did some purchases this week:

On Monday we bought 27 shares of Keurig Dr Pepper @30,2293 USD. This will increase our year 2020 dividends approximately by 2,89 €. We also increased our position at AT&T by 4 shares @30,1384 USD. This will increase our year 2020 dividend income by 1,49 €. On Tuesday we increased our position at Exxon Mobil Corp by 3 shares @39,4405 USD and increased our year 2020 income by 1,86 €. On Thursday we bought 1 share of MSC Industrial Direct Co @68,4275 USD, adding 0,54 € to our year 2020 dividend income. On Friday we bought 3 shares of British American Tobacco Plc @2588,83 GBX and 40 shares of Tesco Plc @220,16 GBX. We expect these purchases to increase our year 2020 dividends by 1,75€ (BATS.L) and 0,9 € (TSCO.L). Prices include the fees. These purchases we made will increase this year dividends total of 9,43 €.

In August we fell 30,74 € short of our target and now we are total 133,65 € behind the target. For the second time this year we failed to increase our monthly dividend income compared to last year. In September we have collected 62,87 € dividends. Our forecast for September is not so good and we will fall more behind. Currency rates are not favourable to us. Still we expect to exceed the 2019 September dividends.

Last full week of August

One day left in August and last full week is over. For a long time this was a dividend free week until we bought a small position of Royal Bank of Canada. On Monday we received first dividends from that company. We received 8,26 CAD which is approximately 5,30 €. This would had been our only dividend for this week but we also received late dividends from Saratoga Investment. From Saratoga Investement we received 2 shares as a DRIP and remainder 2,12 € as a cash. Total dividend from the Saratoga was 29,82 €.

August will be second month in 2020 when we do not exceed the 2019 dividends. Last year August we received 456,89 € and this year we will end up to around 410 €. 

 

 

 

3rd week of August

Again a quiet week. We did not make any purchases. On Thursday we received 1,43 € from Diversified Healthcare Trust. On Friday we received 33 shares of Vodafone @1,32 € as a DRIP and remainder of 0,79 € cash dividend. Total dividend was 44,23 €. We also received 1 share of Main Street Capital @27,76 € and remainder cash dividend of 3,12 € total of 30,88 €. So total amount of dividends received on fourth week was 76,54 €.

In August we have now collected 352,40 € of passive income. Unlike we thought last week, we will not meet our monthly target in August. The reason is that we had one dividend payment marked to very last day of August, but in reality the payment day is in September.

 

 

2nd week of August

Nothing happened at the beginning of the week. Everything happened on Thursday and Friday. On Thursday we received 17,55 € from Whitestone REIT. On Friday we received following dividends:

• Exchange Income 10,34 €
• Inter Pipeline 6,55 €
• Omega Healthcare Investors 48,08 €
• Realty Income 16,75 €
• Abbvie 8,47 €

On Friday we opened a new position in Europe. This will not increase our dividend income in 2020. We bought 30 shares of NN Group @31,7133 €.

We have now collected 275,86 € passive income in August. We most probably will exceed the monthly target of 442 €. This gets us a little closer to our 2020 target, but September will be awful. We are happy if we can reach 300 € in September. Fluctuation of currency rates is hurting our income significantly.

1st week of August

New month started and we had first payment of the second investment loan. We paid total of 501,02 € principal and 34,96 interests and fees.

Monday was week's only day when we received dividends. We received following dividends:

•  9,58 € from LTC Properties
• 114,24 from AT&T
• 44,30 from Verizon

We also made some purchases on Monday. We bought:

• 1 share of AT&T @29,85 USD
  
• 6 shares of HP Inc @17,88 USD
• 1 share of Genuine Parts Company @92,13 USD
  
• 25 shares of Realty income Corp @59,59 USD
  

All purchases include the fees. These purchases will contribute approximately 17,52 € to 2020 target. 

 Now we have collected  168,12 € dividends in August after the first week and we are 376,79 € behind the target pace. We are still waiting if Nordea is going to pay dividend this year or not. We should get 372,97 € dividends from Nordea. This is unlikely since ECB has adviced banks not to pay dividends in 2020.

Although year is not ended yet, we set new target for next year, since we have to start building Q1 income already. We set target for year 2021 to 6200 €, which means we should accumulate 517 € dividends/ month. This is 17,0% increase in our target. 

 

 

Last week of July

On Tuesday we finally received Main Street Capital dividends, 19,56 €.  Delay was 13 days. On the same day we received 8,13 € dividends from MSC Industrial Direct Co. On Thursday we received 23,10 AUD dividends from Clime Capital Ltd which is 14,05 €. On Friday we received 19,97 CAD dividends from Transalta Renewables Inc which is 12,56 €. We failed to receive LTC Properties dividends.

In last week of July we increased our position in Royal Bank of Canada by 14 shares @92,84 CAD. This will increase our 2020 income approximately by 6 €. 

The ECB has instructed the European banks not to pay dividends in 2020 due the insecurities caused by COVID-19. If Nordea will follow this recommendation we will not reach our 2020 target. We cannot increase our positions so much in so short time that we could cover the gap caused by loss of Nordea dividends. We will do our best to get as close as possible, but it is almost certain that we will not reach the target. We set target for the dividends for 2021. New target is 6200 €, which means 17% increase in target and 22% increase to projected 2020 dividends

In July we managed to collect 384,09 € passive income. A bit less than we expected. We start to fall behind and target seems to slip too far to reach. We knew the target was ambitious and then COVID-19 happened. Some of the risks realized, but that is life.