Welcome to my latest dividend income update. For those of you new to these posts on my site, every month I discuss my approach to investing using dividend paying stocks and how reinvesting the dividends paid from the Canadian companies I own are helping me reach financial freedom. You can check out my previous dividend income update here.
One of key reasons I’m investing in dividend-paying stocks today is to build a war chest of stocks to generate future cash flow. Years down the road, I hope to use this dividend income to pay for some of my retirement expenses, maybe even retire a bit early. My hope is that most of my dividend income will be tax-free, thanks to the TFSA.
Since my last update, I made a small purchase in Telus. Lately, Telus and industry peer Rogers were downgraded by some financial experts based on the threat of Verizon coming to Canada to wipe out all Canadian telcos. Since I don’t see Verizon managing the entire Canadian telecommunications spectrum overnight, I’ll gladly take this bad news as a sign – to buy more stock in any of our big three telcos (T, RCI.B and BCE).
Thanks to Canadian companies that pay regular dividends and choose to increase their dividends over time, my dividend income retirement goal is inching closer with each passing month. With most of my dividends reinvested last month I’m confident I’ll cross another milestone in 2013. If the companies I own continue to pay their dividends at their current rate for the rest of the year, I project I will earn $7,045 by end of 2013, a nice increase over this time last year and just over 40 bucks more than last month.
And so, with each passing month, a few more dividends drop into the retirement bucket and the journey continues…