December 2024 Dividend Income Update

Posted on January 8, 2025 by | 36 Comments
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December 2024 Dividend Income Update

Hey Everyone, welcome to my final update for 2024 – for the year that was – our December 2024 Dividend Income Update. 

Welcome to a new investing year, with new investing opportunities and likely some new risks to manage as well. 

More on that below!

December 2024 Dividend Income Update

For new and established readers here at My Own Advisor, a reminder this is our monthly update to share how we are progressing with our hybrid portfolio – a structure that was established now over 15 years ago as of this year follows:

  1. We invest in a mix of Canadian stocks, including those inside our taxable accounts for income and growth, and 
  2. We invest in a growing amount of low-cost ETFs inside our registered accounts like our RRSPs, TFSAs and my LIRA to offset the weightings of the Canadian stocks we own for global, growth-oriented diversification. 

I’m not sure about the returns from your portfolio in 2024 but ours were stellar even with a growing cash position for risk management in the months and years ahead…

In fact, the returns were so good in 2024, we reached Financial Independence.

Weekend Reading – Are we Coast FIRE now?

My/our version of Financial Independence is really about working on our own terms, something we’ll share more about as the months in 2025 move along.

Looking back to 2024 and our final dividend income tally, it was amazing to see the growth despite some limited taxable investing since our focus all last year was on other accounts (in this goals post here; TFSAs and RRSPs in that order).

Here are some key stocks that delivered major gains for us in 2024, even with minimal dividend income delivered from some of these stocks due to lower yields and/or lower weights in our portfolio compared to other stocks or ETFs:

  • Walmart (WMT), up close to 70%.
  • Capital Power (CPX), up close to 60%.
  • Brookfield (BN), up over 50%.
  • Manulife (MFC), up nearly 50%.
  • Royal Bank (RY) and National Bank (NA), up close to 30%.
  • and more…

Even boring, lazy, ETFs we own like our favourites such as XAW and QQQ were up 26% in 2024 each respectively.

My goodness, what a year for equities on the back of 2023 which was also a great investing year.

Makes me wonder what the future holds? Reversion to the mean coming in 2025 or 2026??

In last month’s update, I mentioned I bought a few more shares of Brookfield (BN) in October 2024 close to $71 per share in my taxable account since I had the money to do so.

In December, well, I just couldn’t help myself when Canadian Natural Resources (CNQ) was trading at $43 per share, so I bought more of that before I ran out of cash before the holidays! CNQ is now up 10% since those days already and remains one of my top-5 stocks now into early 2025. 

I’ll update this post later this year:

My Top-5 Stocks

Also in December, many Canadian banks we own raised dividends: RY, NA, CM, BMO, TD and EQB. Only BNS did not raise their dividend but they should deliver a small dividend raise sometime in 2025; I predict something in the 3-5% range. 

When I add it all up including other dividend raises for doing nothing but staying invested in those stocks and ETFs, it was a big month and a big investing year for us overall. Sure, some stocks lagged in price (e.g., Telus) while others jumped in value (e.g., CIBC (CM)) but you’ll get that with investing in a basket of individual stocks or you’ll see it bundled in a low-cost ETF as well. Just the way it goes. Not every stock nor every stock in any ETF can be a winner. 

Which brings me back to my hybrid investing approach: my mix of stocks and ETFs for both income and growth. It is working for me/us and while that approach helped us realize Financial Independence I continue to expect some stocks will underperform any index and others might shoot-the-lights out now and then too. I’ll keep you posted on any massive portfolio shifts but I don’t expect much in 2025…but never say never!

This rewarding end to the 2024 calendar year pushed our final dividend income tally for the year to $48,523.

December 2024 Dividend Income Update

 

As you can see from my chart, we reached a new all-time high in 2024 which averages out to earning just over $4,000 per month from a few key accounts that I/we will tap early in semi-retirement. Other accounts, other assets, other income streams will complement this and in some cases, will occur later in life too…

You’ll also note I’ve put in a target for 2025…not there yet but will monitor. 

I’ll share more investing and income-from-our-portfolio thoughts in future posts but suffice to say that 2024 was a great year financially and it will be interesting to see how 2025 evolves for all of us!

I wish you well in your saving and investing plans for this new year and as always, I welcome any commentary on my path – happy to engage. 🙂

Mark

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36 Responses to "December 2024 Dividend Income Update"

  1. ken · Edit

    Congrats Mark for achieving another milestone!!! There is nothing more gratifying than watching your income/dividend grow higher yer after year. Well done, Mark.
    You inspire countless investors and I am just happy for you. Wish you continued success.

    Reply
  2. Bob Wen · Edit

    It’s good to see your steady progress, this despite a few difficult periods and minor pullbacks in the equity markets over your investing the years. It’ll be interesting to see what happens to dividends if/when the markets tank in the style of 2007-09. I’m betting on the dividends not being hit as hard as equity prices.

    My calculations for the size of our cash wedge/cushion considers how the dividends are taxed, and although I’m adding no new money to our investments, and I’m withdrawing 100% of the dividends plus around 4% equity from our RRIFs each year, I’m seeing the total dividend amount remain flat. I’m drawing down the RIFFs for income and to feed the TFSA’s, so each year, more of our dividends become tax free. The growth in the tax free dividend source is compensating for the reduction in the taxable dividend source, it may even be increasing slightly.

    Reply
    1. Mark · Edit

      Ya, we’re only adding money here and there to taxable, but really don’t need to do so per se. Hard to break old habits!

      TFSAs now full and I will report that to everyone in a few weeks.
      RRSP contribution room may be completed by April or May this year, we shall see but again, not essential.
      Growing cash/cash equivalents for 2025 or 2026 withdrawals across all accounts including corporation is our main goal in 2025.

      I see it the same way and have learned from others essentially this:
      -any RRSP/RRIF drawdowns are “fine” in 50s, 60s, 70, etc. since that’s what the money is for to spend.
      -thanks to the TFSA, money will compound there to offset those withdrawals for future spending as you wish.
      -if you have any taxable income, that is likely to keep flowing in and/or growing over time thanks to dividend or distribution raises; so strategic sales will have to occur at some point unless you want an estate issue to navigate.

      All wins.
      Mark

      Reply
      1. Bob Wen · Edit

        Mark, what are you using for your “cash equivalents”? I’ve been utilizing CASH.TO for several years, but with interest rates dropping, I’m on the lookout for something else. Thanks

        Reply
        1. Mark · Edit

          CASH.TO is great. We have a small bit of CBIL for future withdrawals in a few years along with some money market funds.
          Ya, rates have been dropping but cash/cash equivalents for us help our sleep-at-night factor since I don’t want idle cash and I don’t want to sell stocks or ETFs when down in price either. Happy medium.
          Mark

          Reply
  3. James R · Edit

    Great Job Mark! It’s been great following your journey.

    After losing my job in October I’ve been working on a contract – but the project comes to an end mid-Feb. I might be practicing some involuntary FIWOOT for a little while myself! We’re about 84% to our target annual dividends goal. For the time being, we will live off my severance and the proceeds from this first contract (plus my wife’s full time job, of course). Everything stays on DRIP for now. I’d be quite content with another three month contract for this year – fingers crossed.

    Reply
  4. MikeyP · Edit

    Congratulations Mark! I was also quite happy with 2024 – the year that ultimately became “my retirement year”. Regarding my equity portfolio, 50% of my holdings saw gains in the 20-50% range (with the top 5 being CM, ARX, NA, RY and SLF), 20% saw gains in the 10-20% range, and 10% saw gains between 0-10%. So for those who do the math, that leaves 20% of my holdings which had negative gains – some which you may be familiar with including JNJ, TD, CNR, T, AQN, and PKI. I plan to ride it out with most of these as I still believe in the companies – except maybe AQN (we shall see). Here’s to a great 2025! Should be interesting to see what happens once Yabba Dabba Doofus takes office Jan 20th – I’m crossing my fingers.

    Reply
    1. Mark · Edit

      Congrats, MikeyP, yes, 2025 should be a great retirement year for you.

      Ya, I certainly had a few stocks that didn’t earn 30% but that’s going to happen for sure, whether you invest in individual stocks or ETFs or such…not everything can be a winner = just impossible.

      I still have a bit of CNR and Telus. I forgot about SLF in my list, they did well.

      JNJ should be around for decades to come.

      I don’t have a lot of faith in the future given U.S. Presidency but we’ll see how it all plays out… I think we need a lot more luck than crossed fingers! 🙂

      Stay well and see ya here in the comments again.
      Mark

      Reply
  5. Lloyd (64, retired at 55) · Edit

    Numbers look good Mark!

    My 2025 RRIF/LIF minimum withdrawals certainly reflect the incredible growth from last year as well. The increase in the annual RRIF Factor is a part of it, but the withdrawals went up by over 15% so the growth component was the major contributor. Now have to see if the distribution from XEI is enough to cover the monthly withdrawal in the RRIF. LIF will withdrawal will definitely be covered.

    Wife’s TFSA all into XEI this morning. Basic contribution plus all the distributions from the past year. Haven’t decided on what I’m doing with my TFSA yet. No rush, probably end up flipping a coin next week some time.

    Reply
      1. Lloyd · Edit

        It wasn’t much of a decision in the Wife’s account, so after the REI January distribution showed up, I pulled the trigger. She only has XEI, REI and TDB903 equity holdings.

        The choices for mine are XDIV, BIP.UN and TDB903. I’m leaning BIP for the potential dividend increase announcement in Feb but will see what the January distribution announcement is for XDIV on the 21st. Still gives me a few days for the Ex-Date if I decide to go with XDIV. One of my biggest flaws is my tendency to wemble on making rather simple decisions. 🙂

        Take care.

        Reply
        1. Mark · Edit

          Yes, BIPC and BEPC should both announce a dividend increase in Feb. 2025 sometime in the range of 3-5% is my guess. Anything else is a nice bonus to keep ahead of inflation.

          Cheers,
          Mark

          Reply
          1. Lloyd · Edit

            I’m *really* glad I moved out of BEP.UN a few years back when it hit the low $60’s. When I bought it I thought renewables would be a great sector to be in. Then it almost doubled and I got nervous and bailed. Blind luck on my part.

            Reply
            1. Mark · Edit

              Ya, I still have a small bit of BEP – certainly not performed well of late but you never know what the future holds, including increased use of renewables.

              That’s the challenge with individual stocks – some studs and the odd dud. Same challenge goes with ETFs, just not as easy to see that but it’s there!!

              Mark

              Reply
  6. DividendsOn · Edit

    Good to see you’re doing well Mark.

    I know our portfolios are up over the year. By how much, I don’t know since I don’t benchmark. I’m not really a capital gains type person. Whatever the market gives us for the stocks and ETF’s we own, I just accept.

    The gains of CM this past year, highlight why I don’t just own shares in one or two of the big Canadian banks, but all five of the largest cap.

    I don’t even know yet how much our income has increased in the accounts, since I’m still waiting for our brokerage to post December’s e-statement results. That’s what I check for day by day, until they post it.

    Wish you and your family continued success.

    Reply
    1. Mark · Edit

      Yes, we own all big-6 banks and EQB because I don’t know which one will thrive and suffer near-term. All good. Owned all of those for years now including more recently EQB.

      I have a simple spreadsheet that tracks dividend and distribution income so I can see the tally and it should be higher in January or February after some more DRIPs occur at least in my LIRA and potentially more purchases. We shall see if I have the $$ to do so!

      All the best to you back,
      Mark

      Reply
  7. Chuck · Edit

    Nice looking chart. “Up and to the right”!
    Isnt it comforting to know that your ever growing dividend income will cover a big part of your monthly nut?
    Well done Mark!

    Reply
    1. Mark · Edit

      I hope so?! I suspect the chart will flatten out over time since I won’t be doing any RRSP investing much longer and unable to afford any taxable investing as well, but dividend raises should also help over time too? We shall see. I’m entering new territory soon with all this stuff. 🙂

      Thanks for the kind words. Happy 2025 to you and your family.
      Mark

      Reply
      1. Chuck · Edit

        I stopped dripping and contributing (except for TFSAs) 3 years ago when I retired. Dividends in taxable accts are increasing organically 7-8% per year so your chart will not entirely flatten.
        Unless there is a future calamity you should expect to keep up with inflation and then some.
        Continued success!

        Reply
        1. Mark · Edit

          That makes sense.
          I’ve kept DRIPs turned ON inside my small LIRA, all ETFs in fact; and will continue to do so and those ETFs barely contribute anything to my income stream but do offer growth.
          When it comes to RRSPs and Taxables, DRIPs remain OFF – all income comes in as cash.
          TFSAs not included in this reporting, privacy, etc. reasons but all DRIPs turned ON there for compounding over the coming decades…

          I hope/think you might be right long-term?
          My hope that “Dividends in taxable accts are/will be increasing organically 7-8% per year” – so my hope is it will keep going up assuming I don’t sell any taxable assets. I’ll probably break that down in future reports in the coming years so folks can see more details when I am comfortable to do so. 🙂

          Continued success back!!
          Mark

          Reply
          1. Linda · Edit

            Congratulations! Love seeing your accomplishments.
            I have only been following your progress for two years.
            And also started dividen investing than, It’s encouraging to see your journey. Thank you for sharing and the great advise.

            Reply
  10. Johnny Aruba · Edit

    Excellent results Mark !! It must be exhilarating to update your score card and see how hard your investments are working. You keep giving yourself a raise and that paycheck keeps growing, and the best part is, you are in control. Awesome

    Reply
    1. Mark · Edit

      So far, so good. I’m just really trying to stick to my overall plan, Johnny.
      It’s really that simple but you never know what the future holds!?

      All the best,
      Mark

      Reply

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