Made $1.5 million investing for income. (4Q 2019 and FY 2019 passive income.)

Once every three months, my calculator gets more work than usual.

Yes, another three months have gone by and this is another quarterly passive income update.

As usual, I will share some of my thoughts on some of my investments before I share my passive income numbers.

So, please bear with me as I talk to myself.

Of course, I know some readers will just scroll down to see the numbers right off the bat anyway.

Go ahead if that is what you came here for.

You happy can already lah.

HAPPY NEW YEAR! :D






4Q 2019 turned out to be a good quarter in terms of passive income received from my investments.

Accordia Golf Trust scored a hole in one and came in strong.

I received a larger income distribution from Accordia Golf Trust compared to the same quarter last year partially because I increased my investment in the Trust but mostly because the Trust performed better.

Whether Accordia Golf Trust will continue to deliver in such a manner is uncertain partially because of an offer to buy all golf courses held by the Trust.

If this sounds new to you, you might want to read the following blogs:

Accordia Golf Trust: Reasonable or realistic?

Accordia Golf Trust: Cheap and cheaper.

Crossing fingers here.






Regular readers might remember that I sold a large chunk of my investment in Wilmar in 3Q 2019 to lock in gains.

It was a very significant divestment as Wilmar dropped from my list of largest investments after that.

In 4Q 2019, making use of technical analysis (TA), I increased my investment in Wilmar so that it became one of my largest investments again.

So far, it looks like I made the right move.

Wilmar's planned listing of its Chinese subsidiary will unlock value for investors.

Mr. Kuok has also promised to declare an attractive special dividend thereafter.

Based on TA, I have a target price of $4.50 or $5.00 a share here.

If you don't know what I am talking about here, read this blog:

Wilmar: Target prices.

Beware!

I am doing some prediction here which I have always said I cannot do.

Remember, we cannot predict but we can always prepare.

Note that my entry prices for Wilmar are much lower than the share price today.






So, how much passive income did AK receive in 4Q 2019?

$46,504.96

This is quite a bit more than the same quarter in 2018.

4Q 2018 saw a large contribution from APTT as I increased my investment in the Trust significantly as its unit price plunged.

That investment is, of course, no more as I decided to lock in gains as its unit price recovered in 3Q 2019.

If you don't remember, read this blog:

Sell into the rally but stay invested.






The larger passive income number in 4Q 2019 compared to 4Q 2018 was also largely due to the marriage of Ascott Residence Trust and Ascendas Hospitality Trust (AHT).

Investors in AHT receive 5.43c in cash and 0.7942 new Ascott Reit-BT unit issued at S$1.30 a unit for every unit of AHT they hold.

The cash portion of the deal is about a year's worth of income distribution.

So, my passive income received from AHT doubled in 2019.

If you are interested in this, please read this blog:

Ascendas Hospitality Trust: A bad deal?

I am mindful of the fact that this is a one off event and that it will not be repeated.

So, everything else being the same, my passive income in 2020 should be reduced.






More recently, I blogged about how much passive income per year is enough for me.

My back of the envelope calculations told me I would need about $120,000 a year.

See this blog:

How much passive income is enough?

Well, for the whole of 2019, total passive income from my investments was:

$210,254.16

All is well.






However, I am reminded that apart from the one off from AHT in 4Q 2019, there was also a very significant one off income distribution from RHT Health Trust in 1Q 2019 which would also not be repeated.

If you don't remember, see this blog:

1Q 2019 passive income.

Missing these one offs that happened in 2019, again, I will say that everything else being the same, my passive income in 2020 should be reduced.

Hopefully, it will not be reduced too drastically as my enlarged investment in IREIT Global did not distribute income in 4Q 2019 but will do so in 1Q 2020.

Yes, the effect of my much larger investment in IREIT Global will be seen in 2020.

Of course, we can never be too sure of anything.

So, let's see what happens as 2020 progresses.

See this blog:

3Q 2019: IREIT Global.






In closing, I will say that investing for income has worked well for me and I am reasonably sure it will work well for anyone who wants a more secure financial future and, eventually, to achieve financial freedom.

Some readers might remember this blog published in September 2016:

Make a million dollars by investing for income.

Well, after a bit more than 10 years, total dividends and distributions received from my investments in the stock market crossed the $1.5 million mark in December 2019.

Don't let people tell you it is impossible.

It is only impossible if you think it is impossible.

Have a plan, your own plan.

Stick to it and, over time, you will make it.

If AK can do it, so can you!






Related posts:
1. Largest investments: 4Q 2019.
2. Have a plan, your own plan.
3. Don't be a wage slave.
4. To retire early, have a plan.