February 2025 Dividend Income Update
Well hello, and welcome to my latest: our February 2025 dividend income update.
Wild times…
As many readers will already know, this monthly update is a progress report on our hybrid investing approach established for the last 15+ years:
- We invest in Canadian and some U.S. dividend paying stocks – about 25-some stocks that collectively deliver income and growth, and
- We invest in some low-cost equity ETFs – that deliver (hopefully) long-term growth for extra diversifcation even during current tariff wars triggered by the U.S. government.
You can always read a bit more about what we own on this dedicated My Dividends page here.
February 2025 Dividend Income Update
What will the investing year bring?
That was my question last month.
With tariff wars heating up and escalating now, I think we’re in for a rough investing year.
In my financial projections for this 2025 investing year to plan semi-retirement with, I’ve anticipated a 10% correction. It could be more.
I’ll update this post in a few months to share some specific asset decumulation plans for 2025 or 2026 once things get finalized at my workplace for the coming year.
The good news is, some stocks have already raised dividends in 2025 to support our retirement income plan:
- Great West Life (GWO)
- Manulife Financial (MFC)
- TC Energy (TRP)
- Canadian Natural Resources (CNQ)
- Tourmaline (TOU)
- Brookfield (BN)
- and more.
On that note, hopefully more to come!
A reader recently asked me: “Mark, what do you own where?”
Well, in our taxable accounts, I’ve essentially created our own Canadian dividend fund over the last few decades. I/we own many of our Canadian stocks there.
In our RRSPs and my small LIRA, we own a mix of Canadian stocks but increasingly over the last 10-years more low-cost ETFs for that aforementioned extra diversification beyond Canada. It’s also where I keep a growing cash wedge in support of future registered withdrawals.
Some RRSP assets for us exist in the form of cash/cash equivalents – a home for us to fund one if not two-years’ worth upcoming RRSP withdrawals without touching our portfolio. We have Year 1 now ready (cash wedge) to fund our 2025 RRSP withdrawals, if needed.
Finally, for our other main investing account, TFSAs, while we keep some cash ready for the odd strategic purchase during the year (i.e., to buy more equities when those assets go on sale) those TFSAs are usually fully invested via a mix of Canadian stocks and my favourite low-cost ETF for global growth: XAW.
February 2025 Dividend Income Update
Where does that put our forecast?
Last month, I mentioned:
“At the time of this post, we’re projecting we might earn close to $52,000 in 2025 from a few key accounts (not all our accounts mind you) to help fund semi-retirement. That assumes no dividends nor distributions get cut in our portfolio and it also assumes we don’t buy many equities in 2025 either.”
Well, factoring in those recent dividend raises, I’m happy to report we’re now projected to earn about $49,545 this calendar year from part of our portfolio. That assumes no dividends nor distributions from key ETFs like XAW or QQQ get cut in our portfolio and it also assumes we don’t buy many equities in 2025 either. *Basically, I report cashflow from our portfolio.
To put that projected annual dividend income in perspective:
- That’s averaging over $4k per month.
- That’s doubled from what I was earning from our portfolio just 5 years ago.
*Recall these all PADI updates focus on 1. our non-registered accounts, 2. our RRSPs, and 3. my small LIRA from a former job many years ago. I have reported things this way since January 2023 since these are the first accounts I will use to fund semi-retirement along with part-time work. These updates do not include any TFSA assets at all nor any future pension income from work.
Image: Our resort, just outside/north of San Pedro, Belize, February 2025.
Our view every morning from Belize:
The biggest part of our financial journey is now trying to stay the course amidst major political and market calamity. My hunch is things might get much worse before they get better. I want to be wrong on that.
Throughout my investing journey and running this site over the last 15+ years, I have generally saved like a pessimist while investing (in stocks) like an optimist. Well, we’ll see how 2025 shakes down…!?
I look forward to keeping you updated every month as I march forward.
Onwards and upwards for your investing journey too – let me know what you’re investing in and how that is coming along so far in 2025 during these trying times.
Mark
I’m guessing you’ve factored in the various tax rates of that income?
I have to remind myself some days that the total dividend/interest income on my spreadsheet has different levels of taxation and the number isn’t a real number.
I think I’ve got my taxes all done now but can’t file due to that stupid capital gains issue even though I’m not really claiming any capital gains to be taxed. I donated securities and it appears that even that gets caught by the software. grrrr.
I have, for spending needs but not for these reports to keep things simple. I may have very little RRSP-generated taxation given withdrawals will be modest, there is the personal exemption, and most of my Canadian dividends are tax-efficient and eventually tax-free (TFSA).
Same: got my taxes all done and ready to e-file but can’t.
All good, will wait another 3-4 weeks. Not the end of the world even though it seems like it these days. 🙂
Mark
Lloyd, taxtips.ca has a very good and quick tax calculator based on different sources of income, residency, marital status etc.
Indeed.
That said, I don’t worry about it too much now. I don’t mind some taxes to navigate in retirement. It means I saved enough.
I recall I earn about $50k or so in CDN dividends in a taxable account, per year, without much taxation assuming no other income sources – so that’s a good longer-term target for me as I take out RRSP/RRIF assets over the coming decades.
Mark
More a matter of revamping my spreadsheet to show the breakdown of various types of income. RRSP/RRIF doesn’t matter as it’s all regular income no matter what source within the accounts. TFSA isn’t taxed at all so would probably need a separate entry for that. Then the non-reg account with interest and dividends. The interest can be lumped in with the RRIF income but the dividends would need another entry. My current goal is to avoid capital gains by utilizing charitable donations of securities.
In the end, I’m too lazy to bother redoing the spreadsheet. Just have to keep in my mind that the entry I currently have, isn’t necessarily 100% reality.
Mark, where in your calculations do you factor in the 10% reduction? I assume they’ll be no increases for the period of the recession and reduce the dividends (last year’s amount) by 10%
Good question.
Last year, I took the value of my portfolio and reduced it by 10% just in case there is a 10% reduction in value this year. We’ll see if that comes true or not = no idea. 🙂
I did not decrease the dividend income stream by 10% but that could happen as well – but I would be surprised if that happens but never say never!
Mark
Mark – did you go scuba diving in Belize? I just returned from 1 week in Cozumel, scuba diving and biking.
so my CDN politics shot…should Harper of been tossed in jail for what he did to seniors and Income Trusts?
I did a bit of snorkelling again when there but no diving. I do know from others it is great to do so there! 2nd largest reef system in the world. Pretty amazing actually.
“…1 week in Cozumel, scuba diving and biking” sounds lovely.
Ya, done with some politics where I can on the site. Sadly polarizing and online is not a great tool for meaningful discussions.
Mark
as per your email _I will avoid some U.S. politics for the most part and get back to the focus of the blog – a personal finance journey to and beyond financial independence_ … hope you can read the column article I emailed you from the Wall Street Journal as it explains a LOT about Trump’s behavior. I thought it short, to the point and made the best sense of the confusion we find ourselves in.
Thanks for sharing, Barry. I read it today.
“But Mr. Trump’s America-rst agenda is isolationist and means closing the border to goods and people. Will this kick-start economic
growth? No. Perversely, each job created by taris will destroy multiple others.”
Trump’s agenda is for self-gratification and glory. There is little more to the story as an extreme narcissist. He’s hell-bent on doing what he wants and abusing others in the process. You learn what you live as they say. Trump was abused (quite a bit) as a child and his child-like, abusive behaviour, let alone conman antics, continue as a so-called adult.
Anyone else would be in major therapy by now but now he’s the U.S. President once again. Go figure. I anticipate the U.S. will implode at some point. It’s going to get worse before it gets better is my theory. I hope I am wrong.
Mark
Hey Mark: I just found it rather interesting that Mark Carney as a chairman of Brookfield Asset Management moved the company from Toronto to New York, then stepped down and began running for Canadian leadership. It would appear he doesn’t want to suffer the same fate as other corporations losing profitability under Liberal policies. Call him a hypocrit and scratch BN.
Such a move, intended to either grow or protect a business, would normally be welcomed by shareholders—as indeed it was. Now that Carney is no longer working for Brookfield, it’s just another company listed on a U.S. exchange, while still being listed on the Canadian exchange.
We should remember that board members of a company are legally obligated to act in the best interests of shareholders. I wouldn’t divest myself of a stock simply because someone used to work there, made what was presumably the right call for the business, and has since left and running for another job. Emotions and investing don’t mix well.
Your comment inspired me to read Carney’s biography on Wikipedia. I’ll just say—it’s an interesting read.
Yes, but likely more strategic for Brookfield to gain more assets under management from the U.S. public as a U.S.-located entity. I don’t know all the details of course, just speculating.
Mark