- Total dividend income projected is $580.73 (Down -$71.41 since the previous report).
- $61.10 in dividend income has been added year to date.
- The reason for the drop is a position was sold and reinvested in other positions for balance.
Dear Investors,
For the first time ever since the RTC portfolio was formed, revenue took its first set back. Revenue from dividend income dropped from $652.14 to $580.73.
However, we view this as a temporary set back, and it is in the best interest of the RTC Portfolio for the long term.
Through years of experience, we have learned that set backs are really not set backs. They are actually opportunities.
When you’re younger, a closed door is a depressing set back. But as you become wiser, you realize a closed door is like the sound of a shotgun going off before a 100 metre dash. Set backs set you free.
Forward Dividend Income Projection # 19 – From $652.14 to $580.73
Of course, the set back we are referring to is that forward dividend income dropped.
But this was by choice, as a large position was sold off and redistributed. The decision was made mainly because the position was too large and due to an over exposure in the industry.
Related Post: Mid Year Portfolio Commentary
Since the position has been sold, the proceeds were contributed to a TFSA account, which has allowed for a more balanced portfolio overall.
Although I have had success with stock picking, once you are managing a larger amount of money, managing risk becomes a larger priority. You never want to lose any money!
The point is—we are not attempting to pick the perfect individual stocks, although we try. Our aim is to build the perfect mutual fund. The perfect balance of dividend paying stocks and security in regards to managing risk.
In this case, dividend income is lower but now the portfolio is more balanced overall. It was a trade-off to manage risk.
Dividend Income Projection # 19 | July 2019 | $580.73
Where Does The Business Stand Now?
Overall, expected revenue from dividend income is $580.73 over a 12 month period.
Even though dividend income is lower than last month’s projection, it is still up $61.10 over last year.
Considering that the goal is to earn at least $670 from dividends this year, it would appear as though we have a lot of work to do.
But we are still confident we can pull this off, because September and December are expected to be the largest month’s for dividend income this year.
$419.27 until this is a 4 digit business
It is unfortunate to be more than $400 away from being a $1,000 business after being at $347 last month. It was starting to seem close.
With a 4 digit dividend income and the opportunity to earn blog income, life starts to feel more free.
But now that the business is slightly behind schedule, we will have to work hard to drive revenue higher.
In addition, there is the goal to reach $800 in forward annual dividend income by the end of the year. Aside from dividend raises and DRIP, we will have to find a way to add $219.27 by the end of 2019 to reach this target.
Concluding Thoughts
Since RTC is a very progress orientated team, especially with our investment portfolio, we are not pleased with the drop in annual income.
However, it will only take 3 months to reach the goal to earn $670 if enough stocks can be acquired to add $30 per month.
With that said, we are aware that every extra dollar counts and that we will one day need this income to live on.
We need to continue to push dividend revenue higher to be prepared for financial independence. Consistency is key now.
After all, the goal to reach financial independence is a race against time.
I am not a licensed investment or tax adviser. All opinions are my own. This post contains advertisements by Google Adsense. This post also contains internal links and links to RTC social media accounts.
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Email: graham@reversethecrush.com
Dividend Income Update # 25 | June 2019 | 76 % YoY Increase
