January 2016 Dividend Income Update

Welcome to my first dividend income update for 2016.  For those of you new to these posts on my site, every month I discuss my approach to investing using Canadian dividend paying stocks and Exchange Traded Funds (ETFs), and how reinvesting the dividends and distributions paid from these Canadian holdings are helping us reach financial freedom.

Looking back…

It’s easy to be pleased with the progress we’ve made over the last few years, getting our financial act together, largely thanks to a good (an improved) savings rate:

Dividend Income Update

Prior to 2008, I wasn’t focused on dividends or ETFs or much of anything related to our portfolio.  The Great Recession was definitely a rude wake-up call and time to re-evaluate things.  I started this blog in earnest early in 2010 and I’ve been using it ever since to chronicle our saving and investing ways to financial freedom.

Looking forward…

I have no idea what 2016 will bring, hopefully health and wellness first and foremost.  I do know on the financial front keeping a modest savings rate this year should lead to good financial outcomes.  I also know that having some money left over to enjoy is important to us, very important.

Based on our chart, should new capital be invested largely as planned, I don’t give in to buying new, shiny toys I don’t need, and as long as dividends and distributions are reinvested to buy more shares and ETF units commission-free, I think we have a shot of reaching some of these passive income milestones in the years to come.  This month, we’re at just over $12,000 and by the end of this year I’m optimistic we could hit $14,000.

I’ll keep you updated where we get to later this year.  Thanks for reading and sharing.

What do you make of our financial plan?  Do you have a similar financial plan in place?

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28 Responses to "January 2016 Dividend Income Update"

  1. Even with a Conservative projection, your doing a great job! I believe you’ll see higher growth. Yes, it’s your future Income that will allow you to achieve your ultimate goal.

    Reply
  2. I just heard today that Canadians are losing interest on mutual funds and ETFs. I just started on ETFs this year. Should I be worried?
    Since the Canadian dollar is low, I am not interested in buying US stocks now. My goal is to maximize the TFSAs of my spouse and mine in the next two years. Another goal is to transfer all of the Investors group RRSP to self directed ones.
    You are doing a great job with your investments and motivating others.

    Reply
    1. Smart call on maxing out the TFSA BRS, your future self will thank you!

      If I understand your comment correctly, I think investors are becoming impatient with the stock market – so yes, I would agree. Should you be worried? No, since if you’re in your asset accumulation years you want the stock market to crash/dive/correct/fall. This means you’re shopping when things are “on sale” – this is a good thing 🙂

      Reply
  3. Your dividend income stream looks great and is definitely on track towards financial freedom. Congratulations! My portfolio return looks very similar. $12000 returned last year with a projected $14000 this year. I’m a little nervous about the banks exposure to the oil and gas sector, and hopefully we’re near the bottom.

    Reply
    1. Thanks Brendon. The plan is coming along. I’m not too worried about the stock market, I have no control over what will or won’t happen. I simply need to save, invest and then enjoy my life – what will be is what will be!

      Good luck on your saving and investing goals for 2016.

      Reply
  4. Congratulations on your progress towards reaching your financial goals. A slow and steady accumulation of income producing assets, coupled with reinvestment of those distributions, is what I am doing as well. I would imagine that when you are closest to the finish line, your organic dividend growth and dividend reinvestment will have a much larger impact than contributions alone – the power of compounding is a beast.

    Reply
  5. A forward looking chart like this really great. 14K by year end and 32k by 2023.

    Living in Belgium, I opted for efts that do not per dividend but reinvest internally. Not being able to show a graph like this is a downside…

    Enjoy Life while rolling the snowball

    Reply
  6. Thanks for sharing Mark. You’re doing wonderful bud. Your family will be in a great financial state in a couple more years so keep it up. It’s a great feeling travelling on this journey. Life changing for sure. I know how you feel. It’s very enlightening. Let’s appreciate each day and keep it up bud. Cheers Mark.

    Reply
    1. …the plan is coming along. We simply need to stay the course, focus on our health and hopefully things will work out. We are enjoying the journey for sure. Thanks for reading and the support.

      Reply
  7. WOW I’m impressed by all that you accomplished in 2015. I have so many renovations to get done around here my head spins. Hopefully this year I can finish the bathrooms, flooring and the new kitchen. I know my wife keeps going on about finishing the basement so our son has more room to play so that’s on the upcoming agenda too. We’re planning a trip back to the UK to see family and then a holiday to a travel destination flying out of the UK while we’re there. It’s been 8 years since I’ve been home. Well done with the dividend income… you must be proud of your accomplishments.

    Reply
    1. Thanks Mr. CBB. Over the years, we started to get our financial act together and it feels good. There are a number of other health-related goals I have but it’s nice to see some progress over the years. 2015 was a good year financially so I hope more of the same in 2016.

      Our trip to Scotland was great in the summer and I’d like to go back to the UK at some point – tour England. Maybe in a few years. Good luck with your travel plans.

      Reply
  8. $12K is great and your goal of hitting $14K is even better. This downturn is a good chance to add more of good quality dividend stocks. After all, you can buy more than several months ago. Thanks for sharing!

    BeSmartRich

    Reply
  9. The dividend cash flow mode looks fantastic and it is definitely on the right track toward economic overall flexibility. Congrats! My personal profile returning looks very similar. $12000 came back last year which has a planned USD 14000 in 2010. I’m just a little stressed about the banking institutions contact with the coal and oil sector, and ideally we’re at the bottom.

    Reply

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