Welcome to my latest dividend income update.
For those of you new to these posts on my site, every month I discuss our approach to investing focusing on Canadian dividend paying stocks. We believe buying and holding a number of Canadian dividend-paying stocks in our tax-free (thanks TFSA) and non-registered accounts will, over time, provide some steady monthly income for future wants and needs in retirement.
This month I’ll share my latest dividend income update and answer another reader question.
Hi, maybe you have covered this before but could you go over how you keep track of your investments and dividends to end up with your progress graph and your percentage and dollar estimates? I’m not a spreadsheet or tech kind of girl and this stuff baffles me 🙂 Thanks!
Thanks for your question.
For these updates, I keep the math rather simple. I keep a simple spreadsheet alive to track the following:
- Asset owned
- Dividend or distribution payment date
- Units owned
- Payment amount
- Payment frequency
I then calculate my estimated, forward dividends based on units owned, payment amount and payment frequency.
The graph is rather straightforward as well. At the end of every calendar year I tally our dividend income earned for the year and plot that over time (each calendar year). For example:
- At the end of 2014 our dividend income was $9,550.
- At the end of 2015 it was $11,750.
- Last year it was $13,475.
We’re optimistic if we keep maxing out our TFSAs every year going forward, investing in blue chip Canadian stocks, reinvesting dividends paid from such companies, and…with any money left over we invest inside our non-registered accounts, we might come close to reaching $15,000 later this year. This would be exactly halfway to our passive income goal for an early retirement.
Last month was kind again to our Canadian stock portfolio. Companies like Power Financial and TD Bank hiked their dividends by over 5% and 9% respectively. I’m hopeful more dividend increases are coming our way in April, but I never count on those. We’ll take what our companies provide including long-term capital gains.
This makes our investment plan rather boring – but also very profitable in recent years. We don’t trade, we don’t chase hot stocks and we don’t panic or sell what we own on a moment of bad news. We buy, we hold, we collect dividends and we reinvest dividends every month and quarter for future income. So far, so good.
I’ll have another update for you next month. Thanks for reading our journey.
How are you investing for retirement? Do you own some individual stocks like we do? Do you own ETFs or other funds? Please tell me you don’t invest in high-priced mutual funds…!