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

---

• $18.81 in annual dividend income was added since the last report.

• Total dividend income projected is up to $369.67 annually.

• The RTC dividend cash flow machine now generates an average of $1.01 per day.

---

As no further dividend income will be added during the remainder of May, it’s time to report on how much revenue has grown since April 2018.

To sum up the performance, $18.81 is actually the lowest amount of income added in 2018. It wasn’t necessarily the best month ever. However, it was a forward-thinking month in terms of lowering costs.

Portfolio expenses dropped to only $14.85 in May, which represented a 100% month over month decrease. In fact, the portfolio manager normally would’ve made an additional stock purchase to eclipse $20 worth of income added. But the business is becoming more cognizant of the fact that fees are reducing returns, especially with the performance of the market in 2018.

Nevertheless, the portfolio now generates $1.01 per day and is continuing to move closer to the goal of earning $425 this year. A more detailed report is available below:

[bctt tweet=”Forward Dividend Income Projection #6 | $18.81 added in May 2018″ username=”reversethecrush”]

Income Projection #6 – Key Numbers for May 2018

Number of businesses owned: 11

Total annual dividend Income projected: $369.67 (Up $18.81 since the last report)

Average dividend income projected per month: $30.81 (Up $1.57)

Projected Bi-weekly dividend income: $14.22 (Up $0.73)

Per day: $1.01 (Up $0.05)

Percent to target (Minimum $18,360 annually): 2.01%

Expenses

Cost to acquire income in 2018: $128.70

Expenses in April: $14.85

Total income added in 2018: $140.78

Profit Margin in 2018: 9.38%

** Profit margin is not referring to overall portfolio return. It is a measurement to determine how much dividend income was added compared to the cost of trading fees.

Annual Income Added in May

As noted above, May was the lowest amount of income added so far in 2018. But the income added in May put the portfolio in a great place to reach $400 annually by the end of June.

Now that the chief editor set the target goal of $400 by the end of June, I (the portfolio manager) will have to lean towards higher yielding positions to achieve targets. 

Moreover, it’s worth mentioning that core positions are beginning to seem rather small relative to higher yielding positions. 

Once the target of $425 annually is reached, the business will shift back to acquiring core positions to stay in line with position size objectives.

Concluding Thoughts

The RTC dividend income portfolio continues to make progress towards $400 annually.

Although there are still many positions to be added and many years of saving to go, the cash flow machine is about to reach a more interesting point in its existence. The portfolio is now generating more than $30 per month on average, and some months will begin to exceed $50 in the near future. In short, there will be more income to invest. I fully expect that the amount of monthly income will begin to increase more rapidly as dividend raises and new purchases push earnings higher.

Moreover, I’m looking forward to sharing the power of compound interest over the next 3 to 5 years. In 5 years time, when this portfolio is generating more than $2,000 annually, I plan to share how extra cash flow from investments helps with saving money.

In conclusion, annual income increased by $18.81 in May and the portfolio now earns $369.67 per year. The objective to be financially independent is now 2.01% complete.

The short term target is to add $31 to surpass $400 in annual dividend income by the end of June. As such, the 7th income projection will be published sometime after June 29th. I look forward to sharing the results. 

– RTC PM