Welcome to the quarterly update for Q2 2018. This is part of a series where I track our financial progress on a quarterly basis. I present three parts in this series: (i) Investment & Portfolio Update, (ii) Passive Income Update, and (iii) Goals Update.
1. Investment & Portfolio Update
Q2 2018 saw a some decent activity in our portfolio.
We added to the following positions.
- Algonquin Power & Utilities Corp (AQN.TO) – DRIP
- Brookfield Infrastructure Partners LP (BIP.UN.TO)
- Canadian Utilities Ltd (CU.TO)
- Equinox Gold (EQX.TO) *New position*
- Fairfax India Holdings (FIH.U.TO)
We closed positions in
- Nevsun Resources (NSU & NSU.TO)
- Omega Healthcare Investors Inc (OHI)
- Pan American Silver Corp (PAAS.TO)
We continued adding to the following funds
- Vanguard Emerging Market Bond ETF (VWOB)
- US Equity Index (Seg) Fund
- Intl Equity Index (Seg) Fund
- Scotia Monthly Income (Mutual) Fund
Q2 saw 4 dividend increase announcements in our portfolios.
2. Passive Income Update
A great quarter on the passive income front. During the quarter, we managed to earn a passive income of $2,515.43 – a new all time high for second quarter passive income.
| Year | Q1 | Q2 | Q3 | Q4 |
|---|---|---|---|---|
| 2013 | $383.65 | $516.32 | $718.33 | $1,063.97 |
| 2014 | $1,322.47 | $951.18 | $1,055.79 | $1,803.90 |
| 2015 | $1,546.87 | $1,960.10 | $2,076.81 | $2,256.01 |
| 2016 | $2,167.95 | $2,404.43 | $1,965.95 | $2,561.37 |
| 2017 | $2,067.19 | $2,159.57 | $2,150.41 | $3320.46 |
| 2018 | $2,454.61 | $2,515.43 |
You can read previous quarterly updates here.
“Other” Passive Income
Passive income that we achieve is split between investments from dividend paying companies and what I call other sources of passive income, which includes cash back rewards credit card, advertising revenue from this blog, interest on cash and writing premium articles for Seeking Alpha. As you can see from the chart below, our other category has performed well. Our passive income from the ‘other’ sources saw continued traction in Q2 2018, providing us with some great overall passive income – which we proceed to invest into stocks and funds to compound our growth.
I realize that some of our sources of passive income are not completely passive, as it requires us to put some time and effort into it. However, I consider these sources to be semi-passive and I wrote an article to capture my thoughts on the scale of passivity of each income type. Be sure to check out Passivity of Income.
3. Goals Update
Onto the goals that I set and see how we did overall on that front.
- Earn $11,000 in annual passive income – On track
- Passive Income YTD is $4,970 (45.1% achieved)
- Pay down an extra 25% towards our mortgage debt – No progress here, but we are on track to pay some extra amount later this year
- Portfolio rebalancing & diversification focus – No progress here and needs attention.
- More passive investing. Target 60/40 for passive/active
- Rebalance stock portfolio to reduce materials exposure. Target 35%
- Asset class diversification. Reduced equity focus and increased international exposure
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