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 I own are helping me reach financial freedom.
One of key reasons I’m investing in dividend-paying stocks today is to build a war chest of stocks to generate future cash flow. Years down the road, I hope to use this dividend income to pay for some of my retirement expenses, maybe even retire a bit early. My hope is that most of my dividend income will be tax-free, thanks to the TFSA.
Since my last update, I made a small purchase in Telus. Lately, Telus and industry peer Rogers were downgraded by some financial experts based on the threat of Verizon coming to Canada to wipe out all Canadian telcos. Since I don’t see Verizon managing the entire Canadian telecommunications spectrum overnight, I’ll gladly take this bad news as a sign – to buy more stock in any of our big three telcos (T, RCI.B and BCE).
Thanks to Canadian companies that pay regular dividends and choose to increase their dividends over time, my dividend income retirement goal is inching closer with each passing month. With most of my dividends reinvested last month I’m confident I’ll cross another milestone in 2013. If the companies I own continue to pay their dividends at their current rate for the rest of the year, I project I will earn $7,045 by end of 2013, a nice increase over this time last year and just over 40 bucks more than last month.
And so, with each passing month, a few more dividends drop into the retirement bucket and the journey continues…
Thanks Steve! I love the new look and Avrom did a great job.
Not sure what is going to happen long term either, but I figure now is a decent time to buy. There is always a crisis around the corner….
Sounds like you are well ahead of the game and here’s hoping it pays off for you mate. Your 2013 goal is awesome and I’m sure you will achieve more than you think . Keep at it, you’re motivating me more than you know.
Well, the plan is coming along for sure but it’s slow. I just wish I had a paid off home. That would be less stress.
Another great month of passive income! That’s fantastic. I’m still a few years away from hitting $7k. Keep up the great work!
I noticed that drop in Telus and some of the other big Canadian telcos. I passed for now. I’m lukewarm on telecoms over the long haul. While I hold VOD and T because cell phones are ubiquitous, legacy landline expenses are something to watch and one has to also keep in mind that they are commodity players as there are few competitive advantages really differentiating one service from another, thus making it difficult to establish a moat. Of course, I guess if you hold all of them you might not be doing too bad because consumers switching from one to another will still keep the change in your pocket.
I feel I’m actually behind…since I have the mortgage debt. I hope to make a good dent in that over the next couple of years, then my focus will switch to more investing (I think).
Yeah, the Canadian telcos will be hit (if VZ moves in like they plan to) but makes it a good time to buy. The way I see it, the customer base is always growing and is a competitive one and if some Canadian telcos suffer (meaning acquired at some point) because of the competition then that’s usually good news for shareholders.
hey MOA…what are your thoughts on the recent REIT sell-offs? getting 5-6% in dividends doesn’t sit well with the 15% drop in price.
Personally Sven, I like the sell-offs. I can’t see all REITs going under. The more some stocks drop, the more I like to buy them.
How about you?