By 
Category: 
A new year, a new dividend income target! Last year I was hoping to reach $7,000 but I had to rectify that early and target $6,000. I finished the year slightly short of $6,000 with $5,790.71. This year, as much as I’d like to reach $7,000, I think I will have to target $6,500 in dividend income. It’s a growth of just over $700. To achieve this growth, assuming I can reach 3.5% dividend yield, I would need to add $20,000. I am hoping that my current holdings will provide me with some dividend growth, along with the compounded growth from shares re-invested. With my dividend machine at work, I hope that investing $15,000 will do the trick. Now I just need to invest $15,000 
Dividend Income
My first dividend income of the year is $407.73! My monthly dividend income are not even after my purchases in the fall. January happens to be one of the of my lowest month. The good thing is that it only goes up since my re-invested dividends buy more shares That’s the beauty of compound growth – it’s no wonder Albert Einstein calls it the 8th wonder of the world.
Dividend Paying Holdings
I’d love to have my TFSA contribution made already but that’s not the case. I am going to need to save the money first. In the mean time, I am preparing for my taxes and planning my RRSP optimization.
Broker Accounts (RRSP, TFSA, …)
- AT&T (T)
- Bank of Nova Scotia (BNS)
- Bank of Montreal (BMO)
- Bell Alliant (BA)
- National Bank (NA)
- Canadian National Railway (CNR)
- Chevron (CVX)
- Coca-Cola (KO)
- Cominar Real Estate (CUF.UN)
- Crescent Point Energy (CGP)
- Enbridge Income Fund (ENF)
- Husky Energy (HSE)
- Johnson & Johnson (JNJ)
- Kimberly-Clark Corporation (KMB)
- Liquor Store (LIQ)
- Manulife Financial Corp. (MFC)
- Microsoft (MSFT)
- Power Financial (PWF)
- Rogers Communications (RCI.B)
- Royal Bank of Canada (RY)
- Shaw Communication (SJR.B)
- Toronto Dominion (TD)
Computershare & CIBC Mellon Accounts
- Bank of Nova Scotia (BNS)
- Bank of Montreal (BMO)
- Canadian Imperial Bank of Commerce (CM)
- Enbrdige (ENB)
- Fortis (FTS)
- Bell Canada (BCE)
- RioCan (REI.UN)
- Sun Life (SLF)
- Telus (T.A)
- Transcanada Pipeline (TRP)
- TransAlta (TA)
Readers: Do you have any stocks on your radar?
Disclamer: Please note that this blog post represents my opinion and not an advice/recommendation. I am not a financial adviser, I am not qualified to give financial advice. Before you buy any stocks/funds consult with a qualified financial planner. Make your decision at your own risk - see my full disclaimer for more details.
Image: Master isolated images / FreeDigitalPhotos.net
Great number to start off the year! And I’m sure you won’t have a problem coming up with that $15K
I am currently watching some defensive stocks like Tim Horton’s, Starbucks, Coke, and Pepsi. My goal for dividends this year is the same as yours from last year, $6K. Good luck to both of us ^_^
Liquid recently posted..A Sticky Situation
@Liquid
Thanks for the encouragement! Increasing dividends is definitely a factor of savings.
Great work. That portfolio is looking solid and balanced.
My Own Advisor recently posted..If you want to price match, please…
@My Own Advisor
Although I own many utilities, I don’t have a lot and that’s my focus for this year.
Thanks. It’s getting balanced
I’m sure between reinvesting dividends, dividend growth and injecting new capital into the mix you’ll be able to hit that target. I’m hoping to receive about $2,500 this year with a forward rate at the end of 2013 of $3,500. I think it’s possible but it’s going to take a lot of work. If the markets get very toppy then it could be a rough year for purchasing stocks since I try to at least buy at fair value.
Best wishes in 2013!
Good for you mate that’s some great dividend returns for you. Keep it up!
Canadianbudgetbinder recently posted..Get Out of Debt First, Then Focus on Saving
In 2012 I got about $9500 in dividends (include some mutual funds and GIC interest I hold in registered accounts), majority of dividends I reinvested. This year target is 10.5K.
January is one of the my best months in dividends (I get it from my top holdings RCI.B, BCE, PM, MO, TD etc), I’m tageting 1K in January.
This year I bought into TFSA , CUF.UN and AX.UN – just enough to DRIP one share monthly….
Need to deploy my wife’s TFSA 5.5K…. in big doubt what to buy (I think you have seen my posts at CMF)
PIE, what stocks are you watching?
Awesome number
I always smile when I look at my broker account and I see dividends payout. Feels like I didn’t have to do anything to make money!
I’m seriously considering 2 stocks right now: MCD and AAPL. The first stock would stick in my portfolio for a while and the later is more to benefit from the recent drop. I think AAPL could bounce back to $600 in a heart beat. What do you think?
@The Dividend Guy
Some are really bullish on it … It’s a matter of understanding what their growth can be from market to market … I know they opened many stores in China but Android phones in general are outselling the iPhones. Could be that the cheap iPhone version I hear about will compete in price sensitive markets. It’s highly competitive … I would personally need to look at how their growth of MacBook and iMac sales have done in the past since the introduction of the iPhone – has it increase the market share and by how much? Then look at the emerging market and see if Apple can grow earnings there. After that, it’s up to another magic product …
I have MCD and I am happy with it – it’s a recent buy so not much appreciation yet. As for AAPL, I am not confident on it being a strong dividend payer and I was not successful with my crystal ball in the past to predict
Out of curiosity, I added AAPL to my Technical Dividend Tracking tool and it reaches a high value metric based on its drop in price and consequent increased yield. It ranks better than MSFT but not INTC.
Food for thought …
imho both AAPL and INTC are good buys with current prices…. AAPL has already yield 2.12% and with their extremely low payout and low P/E = 11, probably will increase dividends….
@gibor
They innovate for sure but I still don’t see how the iPhone will generate income for me 15 years down the road compared with a telecom company or JNJ. iPod revenues are down and the same will happen to new products and it’s not every products that will revolutionize. What happens when iPhone and iPad are just regular. The company’s sale will go down … Revenue will go down and so forth. MSFT for example, has way more business alternatives for example. They might represent what AAPL will look like 10 years from now 
The thing with AAPL is that it’s kind of the hot stock – the hot products to have… They don’t offer a service or a product that we have to live without. Android outsells iOS in emerging markets … I am banking on the telecoms first. Their cloud service with iCloud is really a joke compared with what is offered out there. Is AAPL a tech company or a life style company?
Don’t get me wrong, there might be a play but it’s not for the long term dividends in my opinion.
BTW, love the conversation, keep it coming
Good job on hitting the target, I’ve got my eyes on a few stocks. Coke and Starbucks, pretty safe bets I’m thinking.
Chris@The Credit Cat recently posted..What should you invest in, in 2013?
Just curious. If you were going to buy 1 or 2 Canadian consumer staple type of stocks for the long term (10 years +) which would you go for and why? There’s a number I’m considering (looking at total returns). ATD.B, SAP, MRU, LIQ, THI, NWC, HLF, DOL, CGX or something else.
Thanks
@ennsds
In your list, SAP and MRU comes to mind as 2 companies with well established brands and markets. I would start with those. I do own LIQ due to the liquor business in general, it’s a vice not going away. I always like to start researching companies that I find offer a service we are dependent on. Out of the list, SAP would be the strongest for me.
similar to my thoughts, SAP, MRU, ATD.B and LIQ have been my top 4 thoughts for a while, Just waiting a another couple months and I should have some cash to buy one. Also, both those stocks you mentioned have had a considerable run up in last couple years. As a long term investor (10+ years) would you care what price you get into them or just buy and ride? thanks
I see you have/had SJR.B. Are you planning to keep it? I decided to let it go since they don’t seem to have a lot of growth left unless they change fairly radically. Are you still happy with its outlook?
I have a similar list to yours. One difference is KBL (K-Bro Linen), but I think it’s priced a bit high for someone to get now.
Good luck breaking 7k! Sounds like an achievable goal with that playlist.
You might want to look at PennyMac(PMT) and Prospect Investment(PSEC)