All views expressed here are my own. Please refer to the disclosure for additional information.

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Although there’s one week left in April, the RTC portfolio manager does not anticipate that any further acquisitions will be made during the remainder of the month. 

There’s still a few more dividend payments expected. However, these payments will not be large enough to rationalize a sensible equity purchase. 

Nonetheless, annual dividend income increased by $24.79 in April through a combination of equity acquisitions and dividend raises. Projected dividend income now stands at $350.86 annually, which is nearly enough to cover my Apple music subscription 3 times over.

The portfolio manager produced the following report to discuss where the business stands as of April 2018.

[bctt tweet=”Forward Dividend Income Projection #5 – $24.79 Added in April 2018″ username=”reversethecrush”]

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Key Income Projections for the RTC Portfolio | April 25, 2018

Number of businesses owned: 11

• 1 new income generating asset was added to the business since the last report.

Total annual dividend Income projected: $350.86 (Up $24.79 since the last report)

Average dividend income projected per month: $29.24 (Up $2.07)

Projected Bi-weekly dividend income: $13.49 (Up $0.95)

Per day: $0.96 (Up $0.07)

Percent to target (Minimum $18,360 annually): 1.91%

Expenses

Cost to acquire income in 2018: $113.85

Expenses in April: $29.70

Total income added in 2018: $121.97

Profit Margin in 2018: 7.13%

Overall, it was a solid month of growth for the RTC portfolio. At this rate, the business is on pace to reach $425 annually by August 2018. Reaching that mark will put the portfolio in position to potentially beat the goal of earning $425 this year.

With that said, the cost to acquire income is becoming higher than I’d like it to be. But it’s important to remember the focus is on building DRIP positions.

The fees will be higher in the early years, but as more DRIP positions are added, the fees will lower since those positions will continue to acquire shares at no cost. 

In short, there’s a cap on the amount of fees because it depends on how much money I can afford to save, and dividend income will continue to rise on its own without fees.

In addition, fees will not be levied to the RTC portfolio on withdrawals in the future the way a portfolio using the 4% method may incur upon commencing withdrawals.

With that long term view in mind, the idea is to acquire as many dividend paying assets as possible at this stage of the process. As I’ve mentioned in prior reports, the goal is to reach $1,000 in annual dividend income by some point in 2019.

Annual Income Added in March/Last Report

• Annual dividend income is up $24.79 since the last report.

Finally, an uptick in income added on a month over month basis during 2018! It’s pretty neat to view the pace at which you’re acquiring annual income at on a graph. 

The long term goals are to increase my savings rate to between 35% to 50%, and to increase the monthly dividend income added to approximately $83 per month.

Now that a baseline month of $20 has formed, it’s easier to speculate on future projections. Furthermore, it’s more simple to aim for higher targets. 

After all dividend raises and equity acquisitions this past month, the portfolio is now 1.91% complete of the long term target of $18,360 annually. 

Concluding Thoughts

To sum up portfolio activity over the past month, $24.79 in annual income was added, and 1 new position was acquired. The RTC portfolio is now projected to earn $350.86 worth of income.

With another record month on the horizon, the goal to earn $425 annually is still within reach.

Going forward, it is essential to inject as much cash as possible into this business to continue to build this cash flow machine. Seeing that a 4 digit business is within reach, and with recent market activity in mind, it’s imperative to stick to the long term plan.