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Dividend Income – April 2012

Dividend IncomeI usually tend to do my dividend income update in the middle of the month but my time was at a premium this month. I am however managing to update you at the end of the month :) April marked the second year anniversary of this blog and 2009 is when I officially started down my dividend investing path. It has been an great journey so far. I encourage you to take some time and look at my dividend income over the past 3 years and see how growing wealth can be done albeit slowly.

Dividend Income

April is a good month for my dividends. I earned $511.73. Earning $500 per month is what I am looking for in the short term to reach $6,000 per year in annual dividends but I really need to add more to my portfolio over the coming months if I want to reach $7,000. If I look at my projections for the coming months, I don’t really see my income going above the $520 per month and I need to reach $600. If you have done dividend investing, you know it means one of 2 things:

  • Add more money to generate more income
  • Find higher yields investments
I am in favor of the first point. I want to focus on adding money to my portfolio and buy dividend growth stocks. If I get the right stock, I know they can outperform. I did the analysis once with Just Energy and Embridge, it’s a eye opener when you extend your outlook to 10 or 20 years down the road.

Dividend Income - April 2012

Dividend Paying Holdings

Here is a list of my current holdings as of writing by accounts.

Broker Accounts (RRSP, TFSA, …)

Computershare & CIBC Mellon Accounts

I am currently spending time reviewing companies that I believe could provide me with a 10% growth over 10 years – also known as the 10/10 investing rule. As a hint, it would appear that Canadian National Railway is one of those companies.

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

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13 Responses to "Dividend Income – April 2012"

  1. I’m sure you will reach $600/month soon. My dividend in April is quite low. I probably need to diversify more so the dividend is better distributed.

    • The Passive Income Earner says:

      @ReiterBy40
      I actually never planned to balance it. It just happened. I prefer to focus on good investment than the average monthly income right now.

  2. Squeezer says:

    I am just getting my feet wet with dividend investing, but I just bought some shares in Altria and will be buying some more this week.

  3. Rob says:

    Wow, only at 2 years and already pushing over the $500 / month range! I’m at not quite a year, but I’m significantly behind the curve hehe. I’m a Canadian in my 30s as well, and I don’t trust that CPP and OAS will even exist when I retire which is why I starting dividend investing as well. Your results are a great inspiration for what I hope to achieve – a significant income from dividends for my retirement years.

    • The Passive Income Earner says:

      @Rob

      Getting started is the most important. I am in my late thirties and getting to a point where my saving rate is accelerating. The growth in income is mostly due to my increased savings and my investments income is keeping up above inflation too.

  4. Josh L says:

    Hey Passive Income Earner (can I shorten that to PIE? ;),

    I’m really curious about the mutual fund you always mention that generates 8%. Why is it that you never mention it by name? It wouldn’t happen to be FAP would it?

    • The Passive Income Earner says:

      @Josh

      It’s Acuity High Income. I don’t mention it because I don’t want to have a debate about mutual funds. I am about to get that all transfered and adjust that account since it is still with the advisor I started with in my 20’s. The price value has tanked recently and I think a solid REIT would be much better.

      • The Passive Income Earner says:

        Actually, it’s also now called AGF High Income. As I mentioned, I am planning to move away from it. It’s not working out for me and I have been patient …

  5. Michael Davis says:

    Thanks for posting this – I found the graph extremely useful and a good boost to my resolve on my recently construced income portfolio. I’ve promised myself to track my dividend income in a similar manner! Thanks again!

  6. Nice, looks like a lot of shares you own paid out their quarterly dividends this month. I think a lot of our banks and life-cos, some of which you have already, also fit the 10/10 rule. It’s harder to measure their future growth because they are more cyclical in nature than CNR. But assuming interest rates go up by even just 2 or 3 percentage points over the next 10 years, then large financial institutions should probably do really well from now until 2022. On my watch list are Telus, Magna International, and the Bank of NovaScotia.

    • The Passive Income Earner says:

      @Liquid Independence

      Thanks for bringing up the banks! You are correct, the banks all have an average above 10% over the past 10 years – I just checked my spreadsheet. The last 3 years have hurt them though with little or no growth and if you only take the average of the last 5 years, it’s below 10% which mean that at some point, they may not fall in the 10% but they should recover. I love the banks – steady dividends and growth.
      – RY has an average growth of 13.74%
      – BMO has an average growth of 10.69%
      – TD has an average growth of 12.06%
      – BNS has an average growth of 14.98%
      – CM has an average growth of 10.56%
      – NA has an average growth of 12.66%
      NA has grown tremendously in the past couple of years.

      I, too, have had Magna on my watch list recently.

  7. Thanks for the list of stocks. I currently have shares in both Verizon and AT&T for the last couple of years. They have paid very nice percentages in dividends and their stocks have also performed well recently, which is a nice little bonus.

  8. Hi, this is a very interesting post. Hitting $500 from dividends is a nice number. Does this mean you have more or less $50,000 invested?

    I’m still starting out with investments. I have a cooperative share which yields 10-12% on dividends. What keeps me from moving a little bit faster is the load of debts that pulls me back. I hope to get rid of those debts the soonest.

    Best regards,
    Belinda

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