Welcome to my latest dividend income update…better late than never. For those of you new to these posts on my site, every month I discuss my approach to investing using Canadian dividend paying stocks and some low-cost Exchange Traded Funds (ETFs) and how reinvesting the dividends and distributions paid from the investments we own are helping us reach financial freedom.
Here is our simple approach to dividend investing:
- We only buy established companies that have a modest to long history of paying dividends. Many of the stocks we own have paid dividends for over 100 years.
- We reinvest all the dividends paid by these companies whenever possible, so money that makes money makes more money.
- We diversify our stock holdings by buying new companies.
Here is our simple approach to indexing:
- We only buy established indexed Exchange Traded Funds (ETFs).
- We keep our money management fees very low.
- We reinvest all the distributions paid by our ETFs whenever possible.
- As new money is added to our investing accounts, we buy more ETF units a few times during the year.
There is much more saving and investing to do to reach our goal but the plan is coming along. This time last year I reported this about our passive income journey. Thanks to Canadian companies (and some Exchange Traded Funds (ETFs)) that pay regular dividends and distributions we’re on pace to earn about $10,500 this calendar year. We’ll keep our simple investing plan and see where we end up.
Come back next month (if not sooner) to see how we’re doing.
Keep up feeding this dividend engine :]
$10,500 is a yummy return and not far from the first step of my goal too.
Happy to feed the beast farcodev.
If things keep up this year, I hope to hit over $11,000. Time will tell and we’ll let time in the market do it’s thing. Thanks for the support.
You are going gang busters Mark. Congrats on your returns. As you may know, I am an older guy on the block having retired 13 years ago at 56. Having fun planning and working with our TFSAs. I will also be able to add to my non-registered a bit. We have traded down also so big changes here. Keep up the great work and assistance. Continuing to look forward to your articles.
Thanks Doc! It’s coming along for sure.
I’ve learned to appreciate time in the market and simply let the dividends get reinvested and do their thing. Same with ETFs.
Yes Doc, I recall, you did retire rather young. Good on you! “Having fun planning and working with our TFSAs.” This is a great problem to have isn’t it? 🙂
I’m going to move some non-registered assets to the TFSA in 2016, likely bank stocks for that juicy tax-free dividends.
Good luck with the planning and let me know what you do.
I appreciate your kind words on my articles, it’s fun to run the site.
Nice work, Mark, you’ve passed the $10k mark…..with the new TFSA limit it should be even easier to get some tax free income rolling in
It should be Dan. I have to figure out a strategy to get the non-registered stuff into the TFSA and minimize the capital gains.
Very solid number, looks like you’ll hit your $10K goal no problem.
I should be good Tawcan, thanks for the inspiration. I hope to get to $11,500 as a stretch goal by the end of 2015. We’ll see!
I can’t see the numbers? Are they behind another link somewhere? I’d love to see your progress as well as the write up on your approach.
I’m considering doing a more detailed update so thanks for that consideration Jimmy-Rig.
It seems a lot of folks are saying “great numbers” and “almost hitting $10,000”. Am I totally blind, as I don’t see any numbers at all! Where is the $10,000 reference? Sorry..
I am with Jimmy here on the fact I cannot see the numbers. Am I missing something in the post ?
The second last sentence reads… “Thanks to Canadian companies (and some Exchange Traded Funds (ETFs)) that pay regular dividends and distributions we’re on pace to earn about $10,500 this calendar year.”
Nice going Mark! I love the power of compounding and reinvesting those DRIPs. We’re on track to get $28K in dividends in 2015 provided the price of oil holds steady 🙂
WOW. Great income. I only hope to “get there” someday!
It’s nice to see your investments returning great dividends. I hope you make your goal of earning $10k in dividends this year. But what is the capital required to do that?
I hope so too Linda. I need a fair bit invested to reach this goal, into the 6-figures. I will need 7-figures to retire on and most Canadians in my cohort will as well. Thanks for the encouragement.