May 2012 Dividend Income Update
“I am an advocate of investing in individual, high-quality stocks, provided you can take care to avoid certain pitfalls. Historically, stocks have proven to offer as good as return as any other investment vehicle – and nothing I’ve seen over the past 50 years of investing has shaken my faith in stocks.” – Stephen Jarislowsky, author of The Investment Zoo and octogenarian Canadian billionaire investor.
Maybe I’m a follower but I see tons of wisdom in Stephen’s words.
At last count, I own 23 Canadian companies that pay me dividends every month or every quarter. I also own 8 U.S. dividend paying stocks. These companies are an excellent complement to my passive indexing approach in my RRSP. It’s taken me years to build up this stock portfolio, and it will take many more years to get my portfolio to the point where it’s nicely diversified however I feel I’m on a good path. I’m almost at the point with many of my holdings…I don’t care to look at them very often. While I cannot go completely to sleep at the proverbial switch with my investments (and you shouldn’t either), I find little reason to panic for the majority of my holdings when earnings fall short for a quarter, for a few quarters or the stock price drops 10% or more. The reality is, businesses must continually reinvent themselves and sometimes those inventions fall short of expectations.
As time goes by, I’m focused on a long-term goal that will hopefully see us generate close to $30,000 per year in dividend income in another 15-20 years because I stuck to a plan that works.
This past month, after dividends were paid and reinvested in many cases, our portfolio of Canadian dividend paying stocks churned out close to $480, some of it tax-free (in our TFSAs). As long as dividends aren’t reduced and the companies we own keep paying them, hopefully we’ll surpass $6,000 in dividend income this calendar year. We don’t dare touch this money today, it’s growing every month for our retirement living expenses.
A few companies on my watch list are more shares in Progressive Waste Solutions (BIN), more Rogers (RCI.B) and a new position in Royal Bank (RY). I hope the stock market drops a bit more over the summer. That way, I can get all these companies for cheaper prices. As an investor, are you hoping for the same thing?
Why would you not just buy an ETF of Dividend Stocks because I am almost certain if you look at your holdings and that of the ETF , they are very similar?
I am starting to accumulate Vanguard Funds, the opportunities on the TSE are very limited.
Slow and Steady wins the race, and the race does not belong to the fastest but to thsos who keep running.
Great job MOA – impressive indeed. It’s great to see your dividend income increasing from month to month.
I like RCI as well. It’s interesting to read about their expansion into the sports world with buying the Toronto Maple Leafs with Bell Media, and their recent announcement that they will try to snatch up the rights to hockey night in Canada come 2015. A very safe dividend IMO.
I’d love to see the markets get shaken up a bit more in order to take advantage of some great buying opportunities.
Keep up the great work.
GREAT to hear from you!!!!
I too, hope the markets drop this summer. I’d like to buy some more U.S. stocks.
RY climbed big time today. Not good, I wanted more 🙂
I look forward to more of your comments!!
XOM was one of my first dividend stock purchases. At the time it was selling at $58! Obviously that was during the dip a few years back. I can’t complain, I our based 230 shares, I’m currently up an unrealized +35%.
My largest recent purchase was PEP, 275 shares, average cost $63.25. It alone with XOM and CM (238 shares) are my three largest holdings. I really feel PEP will be a big time winner moving forward. I’d bet my money that they will eventually split into beverage and snacks. That will quickly unlock shareholder value.
I’m currently content to hold the Abbvie split from ABT as well as the animal health unit that will split from PFE. Splits and stock spin offs are fabulous. My shares in ENB are currently up + 30% post split (unrealized). Can’t argue with those numbers.
I truly feel as we are all making strides in our portfolios during one of the roughest economic downturns in modern history. Once the tide turns we will all be vast winners!
Here’s to a secure financial future!
I’m the little player beside you all 😀
But anyway it’s the first year I invest, and it’s a good one regarding the dip and good deals.
I currently own PWF, HSE, SU and LB. My plan is to reinforce PWF at 100 shares by the end of this month. It’s not really diversified but it’s better to begin somewhere than to do nothing.
By the way you’ve all an impressive investment plan, and it’s people like you that motivate us the beginners to learn about investing and to use our hard-earned cash wisely (the most possible), not the speculators or expert on newspapers.
It’s always cool to think that you have part (even if it’s tiny) of a company and in a way that you contribute to it by investing.
Keep it up!
I own PWF and HSE as well. I don’t own any LB, but would like to!
Thanks for the kind words about the investment plan. I’m learning, I’m making a few mistakes along the way, but things are getting better and better as the years go by. Hopefully by my 50s, I won’t have any financial worries thanks to prudent work in my 30s and 40s.
Stop by and comment often!
Agreed with keeping a close eye on this dip. Myself I just purchased an extra 200 BIN at 18.50. This week I’ve added 250 shares of IPL-U at $17.42, 250 shares of POW, and 225 RCI/B at $35.42….obviously I could have picked up Rogers a little cheaper, but I decided anything under $35.50 to be a strong buy.
Current dividend income $11,500/year and growing. I just turned 35, and hopefully will see this income grow to $30,000 in 10-15 years.
CND Holdings: SLF, POW, PWF, RY, CM, BNS, BIN, BCE, RCI/B, JE, FTS, ENB, IPL-U, REI-U, HR-U
US Holdings: ABT, GE, PFE, JNJ, EXC, XOM, PG, MDT, INTC
That is an impressive set of holdings! I own many of the same CDN stocks. I want to build up my portfolio of POW and RY. Would like to own TD and CNR at some point.
Your US holdings are very fine as well. I’m jealous of the XOM! I only have a few shares of PG. I’ve love to have a couple hundred (in PG) in the next few years.
Current dividend income of $11,500 is very impressive. I got some ways to go to catch up to you!
I hope you continue to stop by my blog often…stay in touch and we can compare notes.