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 we own are helping us reach financial freedom.
One of key reasons I’m investing in dividend-paying stocks today is to build a war chest of stocks that generate retirement cash flow years down the road. I’m nowhere near my goal but it’s getting closer every month mainly because most dividends paid are reinvested to buy more shares in the stocks I own. With any money left over, I save that money for a few months and when other companies are priced right, I make more purchases in either stocks or ETFs. This has been my process for a number of years now and I don’t intend to change it.
In my previous update, I told you I made a small purchase in Telus. This month, I didn’t have enough money to make any investments so the savings game is on. Looking ahead, I’m tempted to buy some ZDV for the TFSA. That’s one of my top dividend ETF picks I wrote about a few months ago.
In August, the portfolio got a nice boost thanks to a few Canadian banks who decided to increase their dividends. I suspect more companies we own will increase their dividends this fall. Thanks to Canadian companies that pay regular dividends, often increase their dividends, the passive income retirement goal is getting incrementally closer. I’ve calculated we’re on pace to earn $7,100 in tax-efficient and tax-free income by the end of the calendar year, if the dividends and distributions paid remain at their current rate. This is an increase of $50 towards our retirement goal over last month.
And so with each passing month the journey continues…
How is your retirement fund coming along? What investment strategies are you using to get there? If already in retirement, what are you using for income today?
Nice work Mark! You’re well on your way!
Thanks Calgary Girl. I only wish I bought IPL when you did! I appreciate the encouragement for my journey.
Mark: Thank you kindly!!!
Hello: I would like to invest in a dividend income ETF, such as ZDV. I want to receive a monthly dividend payment to me, versus reinvesting that amount.
My question is this: How can I look up how much (dividend payment per share) is paid out from ZDV per month? When I go to http://www.morningstar.ca and look up the symbol ZDV, I can’t see where the specific amount of the payment is listed. Maybe I’m looking at the wrong web site? Help!!! I see that the yield is stated as a percentage, but for my peace of mind, I want to see the actual amount of the payment.
In general, for any dividend ETF or Index fund, what web site should one go to to get this information? ,
Thank you.
Hey Helen,
The beauty of most dividend income ETFs, is transparency. For ZDV in particular, you can see the monthly dividend payment you should receive here:
http://www.etfs.bmo.com/bmo-etfs/distribution?fundId=86809
ZDV currently pays $0.07 per share, so 100 shares will pay $7 in dividends every month. If you could ever get your hands on 10,000 shares, well, you’d have some great monthly income.
For most dividend ETFs, you visit the company that owns the dividend ETF and the distribution information is there online.
I hope this information helped.
Mark
Mark,
Keep up the great work! Over $7k is nothing to sneeze at. You’re well on your way.
Best wishes.
Thanks Mantra!
Good luck on your goals
Thanks very much.
Congrats on being on pace to earn $7100 in dividends.
Thanks! Getting there. I hope your journey is coming along as well.
Mark