February 2013 Dividend Income Update

The objective:  to provide long-term capital growth and passive income by investing in a diversified portfolio of dividend income-producing Canadian securities.

Part of my investment strategy:

1.  Own the same companies the big dividend mutual funds and ETFs own.

2.  Avoid money management expense fees.

3.  Reinvest most dividends paid each month and quarter to buy more stock using dividend reinvestment plans.

Some holdings the big dividend mutual funds and ETFs own:

PH&N Dividend Income Fund:

PH&N Dividend Income Fund

 

TD Dividend Income Fund:

TD Dividend Income Fund

BMO Canadian Dividend ETF:

BMO Canadian Dividend ETF

My investment strategy when equity markets fall:  buy stocks.

My investment strategy when equity markets rise:  hold stocks.

My long-term goal:  $30,000 in passive income to help pay for retirement expenses.

Passive income earned in 2008:  $0.

Progress made towards passive income retirement goal:  22%.

The journey continues next month…  🙂

My name is Mark Seed and I'm the founder, editor and owner of My Own Advisor. As my own DIY financial advisor, we're inching closer to our ultimate goal - owning a 7-figure investment portfolio for semi-retirement. We're almost there! Subscribe and join the journey. Learn how I'm getting there and how you can get there too!

13 Responses to "February 2013 Dividend Income Update"

    1. Just call them up and tell TDW you want to DRIP the ZDV holding. They will take care of the rest. This way, every month, since ZDV pays distributions monthly, more ZDV will buy more ZDV ETF units.

      Money making money. Investing can be this simple 🙂

      Reply
  1. Jane Savers @ The Money Puzzle · Edit

    “1. Own the same companies the big dividend mutual funds and ETFs own”

    Such a simple idea. I will be borrowing it. Those big mutual funds do all the research and I borrow their ideas (and yours). I have 3 stocks in my tiny portfolio and I will be adding a fourth this spring.

    Reply
  2. Mark,

    Keep up the awesome work on your way to that $30k in dividend income. You’re doing great.

    As far as the holdings above, I’m glad to be a proud part-owner in TD and BNS now. RY, BCE and TU are on the list. 🙂

    Best wishes!

    Reply
  3. In Canada, there is definitely a pattern in the big holdings. It’s a pretty much an oligopoly with those companies.

    When the value is right, you pounce 🙂 I have all 5 banks and even last year they were still cheap compared to others in the market with a healthy yield. I have been focusing on utilities this year though to balance my portfolio.

    Reply
    1. For sure, which is why I am convinced you can avoid some ETFs and just own the stocks directly. Not that I’m against products like VCE, XIU or XIC, but when you can own a bunch of the companies these ETFs own outright, and collect dividends and capital appreciation, well, why not?

      The hard part lately is the pouncing. Prices are high. If I find any money, I might limp in with a few more purchases but I won’t be making any big transactions that’s for sure. Thanks for your comment!

      Reply

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