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Dividend Income – April 2014

Dividend IncomeThe spring is here and the markets have started to show how they can drop at a moment’s notice. Did you panic? I hope not. I think it was a moment to rejoice that we had a buying opportunity. I personally did not make any transactions during that period. I just did not have money ready to invest. I also wasn’t worrying about the drop since my portfolio is setup for compound growth return with my dividends and the DRIP programs.

Related: How To Setup DRIP accounts

I have been a dividend investor for 5 years now. In 2009, after the market drop, I changed my investment approach and started moving away from my financial advisor and the mutual funds. I had a solid enough understanding to tackle it on my on. I’ll be up front that I did not know about index investing at the time either and although it has many good merits, I find that markets fluctuates too often and I would prefer to have consistent growing income through dividend investing.

Related: Why Dividend Investing?

The graph below is a representation of my dividend income growth versus the TSX index. It’s a reminder that my income can always be in an upward movement and I can avoid the market fluctuations. That means I don’t have to obsess over having so much bonds when I retire because I am afraid of the markets.

Related: Should Your Bond Allocations Match Your Age?

Dividend Income Monthly Trend

Dividend Income

In April, I have 21 investments paying me dividends providing me with a monthly dividend income of $603.91. So far, with my annual estimation, I won’t reach $700 per month this year. Practically all my holdings have raised their dividends for the year already so all I can do is put some new money in or transfer money from my defined contribution RRSP plan (DCP). As it happens, I do plan to invest new money and transfer money from my DCP. Will it be on time to see my dividend income reach $700 per month?

I hope by now you have noticed that there isn’t any magic formula to get rich. I have stocks that doubled since I bought them and I am not rich. The formula is about having a plan, executing it and being diligent regardless of the income you make. You have to make more than you spend in order to be able to invest the rest.

Dividend Income - April 2014

Readers: Do you have any stocks on your radar?

Disclaimer: 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 courtesy of Master isolated images – FreeDigitalPhotos.net

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4 Responses to "Dividend Income – April 2014"

  1. David says:

    Great job as always PIE. Like you I’ve found that the best way to increase monthly income is through savings. Most of the stories from the young ‘rich’ investors have a similar thread of starting off on margin or a big ‘risky’ investment play that payed off.

    I’m sticking to slow and steady.

    David

  2. Happy to see your progress and motivational as always, PIE. Congrats on another month of $600+ of dividend income.

    Best wishes
    R2R

  3. Love the chart. Great work!

    Mark

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