August 2024 Dividend Income Update

August 2024 Dividend Income Update

Well hello again, 

How was summer?

You know, it’s not over yet thank goodness but the temperature has certainly changed a bit here in Ottawa where I live…and so a new month signals our latest August 2024 monthly dividend income update.

For new and established readers, this is our monthly update to share how we are progressing with our hybrid portfolio – a structure that was established almost 15 years ago designed as follows:

1. We invest in a mix of Canadian stocks in our taxable account – to deliver income and some growth, and
2. Beyond the taxable account, we own some Canadian stocks in our registered accounts but we also invest in a handful of U.S. stocks and just as importantly, some low-cost ETFs for extra diversification. 

So far, since July a few weeks ago, so good. The projected income is moving higher…

August 2024 Dividend Income Update and Changes

So far in 2024, the Canadian portion of our portfolio has already received dividend hikes from some of the following companies:

• BEPC (5% increase)
• BIPC (6% increase)
• BMO (3% increase)
• CPX (5.2% increase)
• CNR (7% increase)
• CNQ (5% increase and more special dividends on the way?!)
• EQB (multiple times in 2024!)
• GWO (7% increase)
• NA (4% increase)
• RY (3% increase)
• SLF (3.8% increase)
• T (3.45% increase)
• And more!

As promised in our June 2024 update, I updated our top-5 % stocks in our portfolio this summer:

My Top-5 Stocks

To that point, dividend raises from the following coming are expected in the next year or so:

• RY (likely May 2025).
• TD (after senior management gets their act together….).
• CNQ (more raises / special dividends in the latter part of 2024?).
• T (should raise in 2025).
• FTS (should raise sometime this fall).

There are also some U.S. stocks that have already raised dividends this year, powering this portfolio:

• BlackRock (BLK)
• Waste Management (WM)
• Walmart (WMT).

And if you think dividends are the be-all end-all here, well, I even own a company in my portfolio for many years that has never paid a dividend. 🙂

Since our last update, I have made only one purchase inside our RRSPs with cash that has accumulated over the summer – I bought more low-cost XAW (of what we already own) in early August under $40 per unit. That’s it. Staying investing is doing the work otherwise although I might buy more assets as 2024 closes. 

August 2024 Dividend Income Update

As mentioned in previous months, now that we’re well into the second half of 2024, I don’t intend to make many new purchases other than the following considerations:

• Non-registered: more TOU or other Canadian stocks that I feel fit my lower-yielding, higher-growth story inside our taxable accounts, and 
• RRSPs: more XAW. 

Here is the new projected tally for our *Projected Annual Dividend Income (PADI):

*Recall these PADI updates focus mostly on our non-registered accounts and RRSPs and a small bit of my LIRA. I have reported things this way since January 2023 since these are the first accounts I will use to fund semi-retirement with. Our income updates ignore all TFSAs and all other retirement income sources (like our pensions). Read more about these monthly income updates on my FAQs page and as always, feel free to ask me a question!

To put this monthy income update into perspective for future retirement spending:

• That’s averaging about $3,867 per month.
• We earn over $127 per day, every day, even in our sleep. 
• Since I like to treat part of our portfolio like a job that never gets any vacation (!), this portfolio jworks hard to earn about $22.31 per hour (working 2,080 hours per year).

A reminder like I do most months here that I share these posts not to brag (hardly) nor to replicate what I am/we are doing. I know some investors who invest in a similar manner we do making $60,000 per year, some are making $80,000 per year and some still (although rare due to **time invested) are making over $100,000 per year from their portfolio – **after decades of saving and investing.

This is how we’ve decided to invest – a hybrid portfolio – that delivers dividend and distribution income from our portfolio of stocks and ETFs. Your mileage may always vary. Other approaches could be right or better for you! The ol’ refrain applies: personal finance is personal. 

This August 2024 income update is almost $2,000 more than January 2024 earlier this year.

January 2024 Dividend Income Update

I look forward to keeping you updated.

Happy investing,

Mark

Related Reading, this is our estimated Financial Independence Budget. What’s yours?

Financial Independence Budget