Hard to believe it’s already been a month since my last dividend income update – summer is really flying by!
Last month I asked if readers were panicked about the stock market.
Some readers, like Jon Evan said “sell in May and go away!” Jon went on to say that “traditionally markets correct at this time of the year although this spring has seen a more bearish one……hey even Apple has dropped 10% and is still falling.”
You’re right Jon, there are certainly some seasonal stock market trends although I’m no expert at that so I don’t even bother guessing “if this is the year” the seasonal trend will occur or not.
Another dedicated reader, Dividend Mantra said “I’m not panicking about sliding markets either. I’m a net buyer of stocks, so sliding or sideways markets are good news to me. I’m always more excited when my favorite equities are on sale.”
I like what you’re saying Mantra.
Instead of panicking, watching Jim Cramer, BNN panellists or a bevy of other talking heads on TV and following what they say, I’ve ignored all stock market news that says not to buy equities this summer and instead, I’ve bought more. The best part of this is, I’m not paying a penny to do so! (By the way, do they still mint those things – pennies???)
This summer, I’m watching our dividend income grow* regardless of what Mr. Market does by sitting around and doing nothing. Well, almost nothing. My synthetic dividend reinvestment plans (DRIPs) bought more shares in the following companies this month: CML Healthcare (CLC), Enbridge (ENB), H&R REIT (HR.UN) and Sun Life Financial (SLF). Next to nothing, I did make an effort to make a small $50 contribution to a company I have a full DRIP with, Fortis. Add it all up, and we’re on pace to earn just over $4,500 in total income from our Canadian dividend-paying stocks in our unregistered accounts and TFSAs for the 2011 calendar year. We can’t spend that money now, that money is being reinvested for our future, but I’m starting to feel pretty good about our dividend investing approach to fund part of our retirement income. (*Don’t be fooled by the graph in this post, our income is growing but different companies pay dividends in different months.)
Where will we be next month? As long as great Canadian companies continue to pay steady dividends, not to mention rising dividends over the years (like many of them have for 50, 75 or even 100 years) I have a feeling our journey towards some passive retirement income will be quite enjoyable 🙂
What do you think about our dividend investing approach? Will it work long term through market highs and lows?