July 2021 Dividend Income Update

July 2021 Dividend Income Update

“Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.” – John D. Rockefeller.

Ha. Love that quote…although….there is far more to life than dividends!

Welcome to my latest monthly dividend income update.

You can find my previous update for June 2021 here.

My plan and my investment approach

Since the 2008-2009 Great Financial Recession, I’ve been a hybrid investor. 

That means I/we own a blend of individual stocks and some low-cost Exchange Traded Funds (ETFs) for extra diversification. 

In more detail:

  • Approach #1 – we own a number of Canadian dividend paying stocks for income and growth. At last check, we own just shy of 30 different Canadian stocks across our portfolio. I tend to own these Canadian stocks in my non-registered account and across our Tax Free Savings Accounts (TFSAs). We own these stocks because we believe buying and holding our DIY bundle of Canadian dividend-paying stocks will, over time, provide some steady monthly income for future wants and needs in retirement.
  • Approach #2 – we’re owning more units of low-cost U.S. Exchange Traded Funds (ETFs) inside our RRSPs over time. While dividend paying stocks are great, we believe in passive investing. We also believe in investing abroad beyond Canada’s borders. In doing so, we’ll add growth and diversification to our portfolio. While we still own some Canadian stocks and some U.S. stocks inside our RRSPs, (names like Procter & Gamble (PG), Johnson & Johnson (JNJ), BlackRock (BLK) to name a few) we’re buying more (and holding more) U.S. ETF units every quarter going-forward.

You can read more (why the growing bias to ETFs inside the RRSP) in this lessons learned post here. 

So, for well over a decade now I’ve owned primarily Canadian dividend paying stocks inside my/our Tax Free Savings Accounts (TFSAs) for growing dividend income….AND….increasingly more low-cost U.S. Exchange Traded Funds (ETFs) inside our RRSPs.

This hybrid investing approach is absolutely allowing us to realize our semi-retirement goals.

In fact, beyond asset accumulation years, passive and active investing can live in retirement harmony too!

July 2021 Dividend Income Update

Last month, we received dividend payments from the following key stocks inside my taxable account and from our tax-free (TFSA) accounts, and DRIPped a number of shares:

  • Algonquin Power (AQN) – DRIPped 8 shares
  • Bell Canada (BCE) – DRIPped 5 shares
  • Innergex Renewable Energy (INE) – DRIPped 1 share
  • Sun Life Financial (SLF) – DRIPped 1 share
  • Telus (T) – DRIPped 14 shares
  • RioCan REIT (REI.UN) – DRIPped 1 share
  • Smart REIT (SRU.UN).

In fact, when it comes to Telus in particular, we own enough shares such that when dividends are paid those dividends easily cover our cell phones bills every month!

(You might recall we also own enough Enbridge (ENB) stock such that when dividends are paid by them dividends our condo utility bills (heating, cooling, gas, and water bills) every month.)

What about your RRSP assets?

A reminder I don’t include any RRSP income in these dividend income reports since a) I’ve always reported it this way and b) RRSP assets are increasingly, mostly, U.S. assets. For sure, there is an income stream to be tallied from RRSP assets owned. I/we hope to leverage that to “live off dividends and distributions” in the coming years as I/we enter semi-retirement.

Check out some great questions asked, and answered by me, on my dedicated FAQs page. 

July 2021 Dividend Income Update

With stocks and ETF units DRIPping along nicely, our money continues to compound away.

Assuming no dividend cuts occur, and dividends continue to compound as they might, we have a great shot at earning $22,500 at the end of this calendar year in dividend income, from the capital invested inside our TFSAs and a non-registered account. 

As of this month, our forward dividend income is at $22,276. 

To put this income stream into perspective:

  • We earn $2.54 per hour of every hour of every day (income/8,760 hours (24 hours x ~365 days)) even in our sleep.
  • Part of the portfolio is essentially a job: earning $10.71 per hour (income/2,080 hours (40 hours x 52 weeks)). Then again, some of that income is 100% tax-free (thanks TFSA).

Money is compounding away this summer while I get outside and enjoy it. Just awesome. 

I hope this update gives you some inspiration for your financial journey. 

See you in the comments section!

Mark

Further reading:

Dividends

You can see some of my stock holdings here. Our long-term goal is to earn $30,000 per year to start semi-retirement with.

These are dozens of articles about low-cost ETF investing and how I invest here.

You can see how other successful investors are using low-cost ETFs or dividend investing (or both) to fulfill their retirement income needs here – there are dozens of essays and case studies to check out!

Again, happy to answer reader questions on my dedicated FAQs page. 

My name is Mark Seed and I'm the founder, editor and owner of My Own Advisor. As my own DIY financial advisor, I've surpassed my goal and I'm now investing beyond the 7-figure portfolio to start semi-retirement with. Find out how, what I did, and what you can learn to tailor your own financial independence path. Subscribe and join the newsletter! Follow me on Twitter @myownadvisor.

18 Responses to "July 2021 Dividend Income Update"

  1. Hi Mark

    I have a bout 15% of my portfolio in XIC.
    The balance is a mix of etfs and mostly Canadian Dividend stocks. I’m 63 and hope to retire in 3 more years and live off the dividends.. Would it make sense for me to convert the XIC to Canadian Dividend stocks now?

    Reply
    1. Well, I can only speak to what is working for me/has worked for me in the past Thomas. I tend to own CDN stocks directly and more so over time, indexed ETFs for the rest of my portfolio.

      I will be “living off dividends” from the CDN stocks in my taxable account in the coming years.
      https://www.myownadvisor.ca/why-my-goal-to-live-off-dividends-remains-alive-and-well/

      Thoughts?
      https://www.myownadvisor.ca/have-you-considered-unbundling-your-canadian-etf-for-income/

      Again, just how I invest!
      Mark

      Reply
  2. Congrats Mark! That dividend train is doing well, steady eddy.
    I really enjoy ‘paying the bills’ hypothetically with the dividends too. For us it’s Fortis and Telus!

    Reply
  3. Amazing progress Mark !! keep it coming.
    it’s inspiring realy to read your journey , years and years ago i used to be happy meeting with my financial advisor at the bank once or twice a year and he used to throw at me all kinds of financial projections 🙂 and one time on youtube a video of the late Jack bogle opened my eyes and changed my thinking forever and now years later i see the benefits of taking your finances in your own hands and of course thanks to you and many bloggers things has been great and yes my july drips are outstanding and still waiting for my drips from BNS CM and TD to end up in my account soon 🙂 can’t wait for those dividend increases from the banks they keep on teasing us and i hate to be teased :))

    Reply
    1. Thanks Gus! Yes, it is my hope we will all get some juicy dividend increases this fall from TD, TY, BMO and NA. BNS to a lesser degree I think. Here’s hoping!
      Mark

      Reply
  4. Hi Mark
    Just awesome, you are well on your way to smashing your 2021 dividend income goal.
    I like your approach of approach of combining ETF investing and having exposure to individual stocks as well. Diversification plus focus 👍
    Keep it up and looking forward to you next update.

    Reply

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