March 2015 Dividend Income Update

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.

That’s it.

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.