It’s good to reflect…more on that in a moment.
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 low-cost Exchange Traded Funds (ETFs), and how reinvesting the dividends and distributions paid from these holdings are helping us reach financial independence. You can check out my previous dividend income update here.
Now the reflection bit. Back in January 2014 I wrote this on my site:
Thanks to Canadian companies that pay regular dividends and tend to increase them every year we earned $7,645 this calendar year (2013) from our investments in tax-efficient and tax-free accounts. Compare that to where we started 2013 it was a significant step forward for us and pretty much bang on with my prediction. If we max out our TFSAs in 2014 like I think we can and reinvest most dividends paid throughout 2014, I could foresee us earning close to $9,000 in dividend income 12 months from now.
Those 12 months are almost up and my prediction largely come true. With our “core” and “explore” investing approach established now, as of this month, we’re projecting to earn about $9,325 this calendar year. This is real income we can (and will) use for our retirement while never touching the capital. This is an increase of about $75 over last month, an increase from doing absolutely nothing but keeping our hands away from the portfolio regardless if dividends increased or decreased.
Investing can be simple but it’s not always easy. Part of being an investor is making sure you do what you can to stay out of your own way. I look forward to sharing another update next month to wrap-up the 2014 investing year.
Are you tracking your progress to financial independence? If so, how is your progress coming along?