My Investing Journey with Passive Income and Stock Market investing

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Top Growth Stock picks for 2020

I’ll first give you the list and then some data about why I like these companies. However, I’ll preface it by saying I own all of them but two.

  • FORTINET
  • NETFLIX
  • MIMECASE
  • TYLER TECHNOLOGIES
  • IDEXX
  • CHEWY
  • GENPACT
  • FACEBOOK

The chart above provides a summary of SOME of the data I look at when evaluating GROWTH STOCKS. Things like EPS growth, both on a quarterly and yearly basis. Predicted EPS growth and Cash Flow Growth rates are some other things I make sure to look at. Lastly, Return on Equity and REVENUE trends.


SO HERE ARE THE STOCKS

First, let’s look at FORTINET. Fortinet is a Cyber Security stock that isn’t too exposed to the COVID-19 area.

Quarter to Quarter EPS growth of 76.47%, A 5 yr cash flow growth rate of 52.4%, 22.07% Revenue growth Q to Q and lastly a 35.56% Return on Equity. FORTINET is an extremely well managed company, has very little debt on their books, and is a CASH FLOW KING.


MIME: Mimecast is an EMAIL SECURITY company. They do a lot of work with Microsoft products. 29.2% Year to Year EPS growth and a 21.57% 5 year Cash Flow Growth Rate. This stock has an even higher EPS growth rate year over year than Fortinet. In addition, it beats it out in the Revenue growth department. Another thing you can’t see in this chart is that the companies MARGINS are increasing, which is a good sign as well.


NETFLIX-What can I say, Netflix is one of my all-time favorite stocks; I am up over 60% in this stock. The main reason I started investing in Netflix was because I saw that the Cash Flow growth rate was incredible. Over five years it has increased its CF growth rate 44%. INCREDIBLE! You can also see from the chart above that NFLX is putting up some HUGE growth numbers, over 100% Quarter to Quarter. Return on Equity is fantastic, so the company is managing itself well and revenues continue to increase. I believe Netflix is positioned well during COVID-19. I simply hope they are able to film more and more movies without too much interruption. Lastly, I believe NFLX has shown that its competitors are no match for it, DIS didn’t take its market share (for many obvious reasons).


FACEBOOK-I no longer own FB, I swing trade it from time to time. At the same time, it’s hard to deny that its book look wonderful. Just look at the Cash Flow and Revenues, not to mention the great EPS growth rate quarter to quarter. Once again, I think Facebook is one of those stocks you can count on to get you through COVID-19 unscathed. Despite a recent mix up with large companies that no longer want to use the company for advertisement, I believe FB is going to be okay without them. FB has a HUGE number of advertisers, it’s a place they need to be.


GENPACT-Genpact is more of a slow grower, not a 100% growth stock. It’s been around for a long time and is a very diversified company. Its primary business of course is analytics. 41.94 EPS growth Q2Q is pretty incredible for a company with this history. 23% projected growth next year is another reason I put this on my growth stock list. At these prices, I believe the company is seriously undervalued. I’m currently buying more of this stock.


IDEXX-Idexx is involved in the vetinary product business. Between this and Chewy, you could be on the start to a PET ETF :). Once again, you can see that this one has some slower EPS and revenue growth numbers than many of the others. However, a hefty 21% projected growth for next year. I think this will be a fine company to own in the future. Disclaimer-I do not own this one, at the moment I find the valuation to be just a bit high.


TYLER TECHNOLOGIES-This is another one that is more of a slower grower. It’s revenues have slowed and is only projected to grow 8.52% next year. At the same time, I feel the company has a nice moat. 68% increase in EPS quarter over quarter, so maybe it can keep that going and beat expectations with its growth


CHEWY-Chewy is one of my favorite stocks right now, our little cats love this company. With COVID-19 still running rampart, I think ordering pet supplies through the mail is here to stay. I do have some concerns with the company, the main one being how many shares it’s employees are being reimbursed with. However, look at the gigantic REVENUE growth on this one quarter to quarter…..46%! Analysts are projecting a 57% increase in earnings next year as well. I believe the future looks bright for Chewy. I unfortunately only own a very small portion (1% of my portfolio) so I plan on upping my game in this one before the year is over.

HERE IS THE YOUTUBE VIDEO AS ALWAYS:

JUNE PASSIVE INCOME & MY PORTFOLIO

HERE IS MY JUNE BREAKDOWN

  • Adsense $4.96
  • Amazon Affiliate $2.82
  • Skillshare $9.21
  • Digital Products $24.50
  • Patreon $76.81 (Before Taxes)
  • Teachable $9.21
  • Dividends $12.33
  • Dividends in retirement accounts $101.21
  • Swing trading $37.06

TOTAL PASSIVE INCOME (NOT COUNTING RETIREMENT) $197.35

TOTAL PASSIVE COUNTING RETIREMENT DIVIDENDS $298.56

Some notable improvements, last month I had ZERO Digital Products and Amazon Affiliate income. So even though they are small amounts, it is a positive movement. Patreon, like last month, continues to be the outperforming. My swing trades for the month include ROKU and FACEBOOK, both over an 8% return.


My DIVIDEND BREAKDOWN:

Putnam Municipal Income CEF (PMM) $.26

Marten Transport $0.20

Genpact $1.46

HOFT $10.40

In my Traditional IRA:

IEF $.61

SWK $11.04

Kforce $2.20

Cash $0.01


MY PORTFOLIO

The MAIN thing I’m doing is contributing more and more into ITOT (A total market ETF). I am also selling small portions of VALUE/DIVIDEND stocks like Westrock, Medical Properties Trust, and American Eagle Outfitters.

I want to increase my positions in growth stocks like Chewy, Fortinet, Akamai, and Marten Transportation.

I’m also buying small portions of the gold ETF, IAU. I think Gold still has a little bit more to run before another pullback.

passive income report

Passive Income | Mid-June

For passive income, my Mid-June is looking good so far.

Here is last months report if you want to compare:

I’m already making DIGITAL PRODUCT sales and it is only the second week. In addition, I’m improving my sales via Amazon affiliates.

Let’s get to the numbers on my Passive Income Journey here:

Patreon so far has paid me $65/month. It is one of my biggest winners. This is $2 less than last month, but that is okay, people come, and people go on PATREON. I’ve had one new member sign up already.

Google Adsense– $1.50. This is NOT looking good, as I was making $10 at one time. Google Adsense HAS been making some changes, such as no longer allowing you to customize fill rates for ads. I also know the company is reporting losses in advertising revenue. I’m sure this has SOME to do with these decreasing numbers; I am hoping it turns around soon!

Skillshare– $29.66. This is one of my biggest winners this month. Lots of views and new students on my course. The ironic part is I have not updated this course in NINE MONTHS. Maybe I need to get to work on uploading new content on SKILLSHARE, so I can make even more money.

Digital Products-$13 I went from ZERO last month to this so far. We are looking alright. I think my youtube videos are helping my music sales.

Amazon Affiliate-$2.82. Amazon has been a loser for me but I think I CAN improve. Once again, last month I made ZERO dollars from Amazon Affiliate, this month I’ve made three sales. This is the commission I’ve made. I need to sell higher ticket items, ha.

Dividends-$18.68. I’ve barely had any dividends come in so far, so I expect this number to climb. So far it’s just Bond Funds, Stanley Black & Decker, and Putnam Municipal Closed End Fund.


My mid-June total is $130.66

One of my short-term goals is to get this number above $200/month. I SERIOUSLY believe I can do this within the next few months. I am working hard, building my youtube followers, which in returns results in more conversions of digital products.

I also began contributing new money to my accounts again, so, I expect those dividends to start climbing once again. Yee haw!

HUGE Winner-Stanley Black & Decker

I was recommending Stanley Black & Decker as THE stock to buy back in March. I was literally buying it every other day as extra money came in.

You can see the screenshot from my IRA account below. I am up over 42% total in less than three months. One tranche is up over 95%, talk about crazy.

This is why, when the fear is high and the market is crashing, real wealth can be created during that time. The sky was falling, people were all yelling don’t buy, sit on the side lines. Meanwhile, SWK was at 5 yr lows, it was a DIVIDEND ARISTOCRAT, and most importantly, my time horizon was long. It was an opportunity I couldn’t pass up.

I knew SWK was going to be a winner, but I never thought it would be the top performing stock of this quarter for me.

I think the stock STILL has legs to run, so I’ll probably add a little more to top it off.

May Passive Income Report

So, I’m STARTING to concentrate more on my passive income besides Dividends. More income equals more money to invest. I need to get the cash flow coming in more and more so I can invest it and compound it even faster.

I’m gradually finding out what works for me and what doesn’t work. This lets me know where to funnel my energy, so it pays off the most.

Right now, the biggest winner for me is Patreon. While it certainly isn’t 100% passive (I have to upload content), once it is up, it is up and it generates income.

Probably my biggest loser is Amazon Affiliate. I don’t really do too many reviews and I only have the links under my music videos and a few places on my music website. However, I would think after over a 100 clicks I could generate SOME income from it. Apparently not so.


Here is the breakdown of May’s PASSIVE INCOME

Amazon Affiliate- $0

Patreon – $67

Skillshare- $25

Teachable $7.48

Digital Products- $0

Dividends- $82.50

Adsense- $5. 27

TOTAL PASSIVE INCOME FOR THE MONTH OF MAY WAS $187.64


I am SERIOUSLY surprised I sold ZERO digital products in May. I’m not sure what happened. At the same time, I recently converted my main site over to https and that caused it to take a traffic hit via google. June is only a week old at this point and I’ve already made digital product sales, lol.

Patreon continues to be the outperforming. I’m gaining supporters each and every week and my goal is to get up to that $100 mark.

Skillshare is a nice platform if you are just getting started. I haven’t updated it in half a year because I’m not a HUGE fan of the platform’s payment method. Also, consider me IRKED that they cancelled one of my courses without notifying me one time. So yeah, I’ll take the money but I am not being active on Skillshare any more.

Teachable is simply from instructional video sales. I believe this is on a one month lagging payroll so this is probably from April technically. Since concentrating on Patreon I haven’t really updated my Teachable either. I plan on turning my Teachable into a membership access site just like patreon. I think I will have better results that way, rather than pay per video.

Adsense-I once again think Adsense was negatively affected from the https switch on my site. Also, google has decided you can no longer choose your fill rate, it does it automatically. We will see how this affects my ad revenue. I’ve heard many people’s ad revenues are down. Basically my expectation here is a base level of $10 a month at the moment; that is “normal” for me.

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