Greetings my upwardly mobile friends! The third quarter of 2019 (July through September) was big for the Passive Income experiment. In fact, it was so big that it warranted shifting from monthly reports to Quarterly Reports. In making this shift, we can capture more data and we don’t discriminate unfairly against those ETFs that provide quarterly dividends as opposed to monthly dividends. In fact, this quarterly format should give us more of an apples to apples comparison between passive income from different sources.
without further ado, this is the passive income report for Q3 2019 versus Q3 2018
| Q3 - 2018 Income | Q3 - 2019 Income | |
|---|---|---|
| PGX | $56.67 | $152.19 |
| EIRL | $0.00 | $0.00 |
| PFF | $30.69 | $77.62 |
| SCHD | $20.38 | $182.11 |
| SPYD | $46.73 | $196.97 |
| VYM | $0.00 | $27.78 |
| Money Market interest | $0.00 | $67.07 |
| Total Passive Income | $154.47 | $703.74 |
This shows that compounding and continued investment are both working well In providing me more passive income. As a result, we can see ridiculous growth in the amount of dividend income being generated. This is the whole point of the experiment so it’s good to see it is working correctly.
You may notice that I’ve added EIRL to the portfolio. It’s only 5 Shares. EIRL is an ETF intended to track the performance of a broad swath of the market for the Republic of Ireland. I added it to have some skin in the game with Brexit and the future possibility of Irish Unification having a potentially big impact on the Irish market. It’s not really part of the experiment but it does provide a small annual dividend that I am including for the sake of completeness. Investments like this are speculative stuff and I’m not diving into this in any major way.
Q3 has been a monumental quarter. Because we are looking at the results of a quarter, we can see that the quarterly paying ETFs are actually paying more than the monthly ETFs during each quarter. That’s valuable information for reevaluating my allocation of future investments. My goal for Q3 2020 will be for passive income to exceed $1000. I’d like to buy more SCHD, SPYD, and VYM, each of which are quarterly paying ETFs and each of which have lower expenses ratios than the monthly paying ETFs.
