November 2017 Dividend Income Update
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 post is better late than never…an update for last month late this month…but heck, whatever!
Last time I shared an update, I mentioned about 20 Canadian stocks in our portfolio, year-to-date, increased their dividends in 2017. Well, the good news kept rolling in last month. Sun Life increased their dividend for the second time this year as did Telus.
Thanks to more cash flow flowing from these companies to shareholders like me, we’ve now assured ourselves of earning just over $15,100 this calendar year from Canadian dividend paying stocks held in our tax-free (TFSA) and non-registered accounts. Again after many, many years of diligent saving and investing – to put that income in perspective – we believe that income could pay for the following (if we wanted it to):
- Our home property taxes throughout 2018 (nearing $350 per month, estimated $4,200 per year in 2018)
- All home utilities next year (heat, hydro, water, internet, other; between $600-$650 per month, upwards of $7,800 per year)
- And more…
I say if we wanted it to because I anticipate using every penny of our dividend income earned from our non-registered account in 2018 for debt repayment. We’re looking at moving in 2019. An option for us is selling non-registered assets to pay down any debt associated with a newer home or a move but I will incur some modest capital gains to do so – which I wish to avoid. We will assess how much our debt load is in another few months and decide if we can pay it down aggressively (or off) over the next 18-24 months; minimizing any borrowing costs.
Stay tuned for my next dividend income update wrapping up 2017 in a few weeks. Speaking of wrapping, I hope your plans for the holidays are coming together too!