Hey Everyone, welcome to the November 2024 Dividend Income report. This is where I track our investment income from dividend stocks, index funds and exchange-traded funds (ETFs). November is usually a pretty good month for the PI and we earned almost $1,225 from investments and online sources!
Our long term goal is to one day be able to live off this passive income or at least have a significant portion of our family’s living expenses covered by it. That’s why we keep prudently investing no matter what.
But one problem we’ve been having since the summer is that as interest rates drop so does our “safe” passive income from things like money market funds. So we’ve been shifting out of Canadian Money Markets funds over to US ones as the they are likely to cut less than Canada. Also, the US dollar is a safe haven asset should we get a recession (which seems increasingly likely – in Canada).
As rates come down we are in what feels like a crazy blow off top. Bitcoin near $100k US, stock markets at all time highs everyday it seems. Curiously Bonds sold off and gold dropped on the Trump victory. That could be an interesting trade.
Or maybe (as I fear) risk assets smell higher inflation and currency debasement/devaluation.
The Canadian dollar has dropped around 7% since the summer and things look likely to get much worse if Trump follows through on his tariff threats against Canadian goods.
This comes at a time when the Canadian economy is weak and fragile. We could be shaping up for a big drop in asset prices in Canada as inflation due to a falling CAD picks up.
Trump’s Treasury pick Scott Bessent has mentioned the need for a new Bretton Woods agreement. I found this quite alarming given that Western currencies continue to weaken as debt and deficits go on as far as the eye can see. The BRICS continue down the road of moving away from the US dollar global financial system. Gold and Bitcoin are at all time highs in every currency on earth. Something’s gotta give!
I keep adding to some of my ETF holdings in my Questrade Account. I’m trying to avoid the massive tech bubble by buying beat up dividend stocks like the telcos, pipelines and utilities. I’m staying away from Canadian Banks because I’m afraid of the fallout from our massive real estate bubble.
The inflation versus deflation debate has been dominating economists and macro strategists for the past year so I’m trying to position my family’s finances to withstand either one.
I don’t think the road ahead will be smooth at all and we may face periods of intense deflation along with rising inflation in some areas. In short, it’ll be messy which makes diversification, I mean real diversification important for a generation of investors that know only rising asset prices and cheap credit.
As I said in an earlier post, our approach focused on paying off debt and building cash. This decision has impacted these passive income reports, but has also strengthened our financial position. For inflation protection we’ve also invested in commodities and precious metals: physical through Silver Gold Bull – Your Trusted Bullion Dealer as well as some ETFs and mining stocks.
Why Do We Publish Our Passive Income?
First off, I’d like to say that I’m not trying to brag about our passive income in any way by publishing these reports. Trust me, there are some financial bloggers out there that do a lot better than I do and are absolutely killing it. I’m not some financial guru either. I’m just a regular guy with a day job that’s trying to get ahead and escape the daily grind like everyone else.
My main reason for producing these reports is to motivate myself and hopefully others to do better financially. Over the years, I’ve found that when I track my dividend income, it tends to grow.
Maybe its because I’m focused on growing those dividends that I’m constantly scheming up ways to make more money (or save more money), so that it can be put to good use by investing it in great dividend paying companies. This approach has served me well and this year my family is on track to earning $43k in passive dividend income.
Think about it. That’s $43k that we don’t have to get up in the morning to work for. We just go on living our lives and all the while, each and every month, we receive cold hard cash in the form of dividends from our investments.
Right now we re-invest these dividends to buy more shares in our favorite companies so that the dividend income continues to grow over time. But one day, we will be using that dividend income to finance an early retirement.
Building Solid Net Worth
We continue to make progress and still above $2 Million! I didn’t have an official net worth goal for this year, and I’m happy to see that we are above the 2.095 million mark.
Financial Assets
The recent stock market weakness has slightly reduced the value of our financial assets. As we keep investing, our financial assets are on the way to $1.1 Million!
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Building Up Real Assets
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We’ve also added to our Gold and Silver holdings to hedge some of the risks to financial markets.
I purchase gold and silver from: Silver Gold Bull – Your Trusted Bullion Dealer because if you can find a better deal, they’ll match it.
Killing Debt + Building Assets = Wealth
While it’s always nice to see our investments grow, I’m also happy that we are now finally completely DEBT FREE!!! We paid off the HELOC in June of 2021 and the mortgage in July 2022.
The more I think about being completely debt free, the more I realize how much of a huge obstacle debt is on the road to building wealth.
I firmly believe that paying down debt is key to achieving financial freedom. Killing our family’s debt helped us build our net worth in a safe, sustainable way while strengthening our overall financial position.
Net Worth vs Investment Income
Having a million dollar plus net worth is an important milestone on the road to financial freedom. But unless it’s backed up with some serious cash flow, it doesn’t really mean all that much.
After all, as you can see from these reports, my net worth rises and falls primarily due to fluctuations in the stock and real estate markets. For me, what’s really important is that my investments keep paying me cold hard cash each and every month.
That’s where my sense of financial security comes from, not whether I can sell something for more than I paid for it last week, or a month ago.
Streams of Passive Income are Key to Financial Independence
The one major thing I learned during the last recession was that, while my net worth may fall, the bulk of my dividend income remains the same. That’s why I think building streams of alternative forms of income, whether it’s from a rental property, dividend stocks or even an online source like starting a blog, is key to achieving financial freedom.
Once you start hitting $1k/month, you basically have about half of your monthly expenses paid for by passive investment income. What’s even better is that I’ve found that after a few years, the income really starts to take off.
Benefits of Passive Income
I once read somewhere that millionaires have about 7 different sources of income, which is a big reason why they’re rich. If they lose 1 source it’s not the end of the world for them because the other 6 still provide financial security. On the other hand, the rest of us are almost completely dependent on 1 source: our Jobs!
This is something that I’m working hard to change for my family and is why I invest as much as I can. In these income reports I try to be as transparent as possible to show you where my investment income comes from.
These reports simply show my investing approach and what has worked (and sometimes not worked) for me. I’m by no means a financial expert but I am very pleased with my results to date.
I hope these reports inspire all of you to start saving and investing your money for a healthier financial future. Now you may think that you need a lot of money to start investing, but the reality is that you can get started with as little as $25 a month! So what are you waiting for?
How You Can Build Passive Sources of Income
Some of you may be wondering how YOU can start investing and building up streams of passive income. First, just let me say that investing is NOT rocket science, but I DO recommend reading as much as you possibly can. Check out my MUST READ page for some useful articles. You can also see my Favorite Personal Finance Books List.
If you’re hell bent and determined to start investing your money in dividend stocks and exchange-traded funds (ETFs) right now, check out my step by step guide on How to Open a Questrade Account.
If you’re a bit hesitant to start buying stocks or ETFs through an online discount broker like Questrade, then you may want to try an online bank like Tangerine. They offer a range of accounts (RRSP, TFSA) and a whole menu of Tangerine Investment Funds at reasonable prices.
Now on to my monthly cash flow from investments.
Monthly Investing Activity
Saving and investing automatically is a proven strategy for building long term wealth so I keep making extra cash purchases in my DRiP account to buy more shares of great dividend-paying companies. In addition to the stock purchases, I’m also investing in low-cost index funds in our retirement accounts. These purchases amounted to about $1.6k in total.
As I said before, one of the great things about being a dividend investor is that all of my dividend income is automatically re-invested. Every month this income buys more shares in my favorite companies that will, in turn, produce even more monthly income for me. This is how compounding works and is why it’s such a powerful force…what Einstein called the “Eighth Wonder of the World”!
This month, reinvested dividend income bought more shares in Emera (EMA) and Bank of Montreal (BMO).
November 2024 Passive Income Report
Monthly Passive Dividend Income
November was a weaker month for dividend income coming in at a solid $1,151.23!
Here is the breakdown of the numbers for our November 2024 Passive Income:
Dividend Stocks
Emera (EMA) – $112.51
Bank of Montreal (BMO) – $15.56
RioCan REIT (REI) – $3.62
Freehold Royalties (FRU) – $28.08
Tourmaline (TOU) – $100.00
Mutual Funds and ETFs
Vanguard CDN High Yield (VDY) – $0.16
BMO Covered Call Utilities (ZWU) – $15.54
Purpose Bitcoin ETF (BTCY) – $12.92
Hamilton Enhanced Multi-Sector Covered Call ETF (HDIV) – $2.39
Horizon Gold Producer CC ETF (GLCC) – $52.14
TD CDN Money Market – $524.26
TD CDN Bond Fund – $9.70
TD US Money Market – $281.33
Total Dividend Income: $1,158.21
It’s great to see that our investments are producing over $1100 last month! That’s not too shabby at all for a completely passive source of income. After years of saving and investing, I’m starting to see the fruits of my effort and I’m happy to finally have my money working for me.
Blog Income: $67.02
I’ve included my blog income as I’ve had a number of readers ask about its profitability. Blog income is never a sure thing. In fact, it’s all over the place. This year my blog income has fallen considerably as a result of Google’s algorithm update. This month’s income was well below the average and is a combination of Mediavine Display Ads and affiliate sales.
Starting a website and earning online income has never been easier and I highly recommend starting your own website. It cost about $200 a year and the sky is the limit as to how much you can possibly earn.
If you’re looking for a side hustle consider earning online income. I’m not gonna lie and say that it’s easy to make tons of cash, but if you spend a little bit of time and write some quality content you should do just fine. Check out my step by step guide below for more info:
How to Start a Blog
While I’m not living off of my blog income, it does help my cash flow for buying dividend stocks. For those of you interested in building solid long term wealth, it’s crucial to find ways to make more money so you can use it to make investments.
I’ve been investing thousands each month in high quality dividend stocks. Without my blog income I wouldn’t be able to invest as much. I think you guys get the idea here. Generate more income to invest and you’ll really kick-start the power of compounded returns. If you want to achieve financial freedom, you gotta do some side hustling to get there.
My family’s annual passive income goal is $43,000 and we have so far received $25,775.73 in passive income. So far, we’re at 60% of our annual goal.
Thanks for reading my November 2024 Passive Income Report and remember that if you Invest Early and Stay With It for the long haul, then you’ll see these kinds of results too!
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