October 2017 Dividend Income Update

October 2017 Dividend Income Update

Welcome to my latest dividend income update.  For a change this update is right on schedule!

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.

Thanks October for another healthy dividend raise (while we spent half of this past month in beautiful Portugal on vacation).

Lisbon city view from Castelo de S. Jorge (St. George’s Castle).  Perched atop one of Lisbon’s main hills, the castle provides a majestic view of the city centre and surrounding areas.  It was the home of Portuguese kings centuries ago.  The castle took on a more important role from 1580 until the start of the 20th century as an important military command.  

Our view from a Quinta (winery estate) in the Douro Valley during some wine and port tasting one morning recently.  (Yes, in the morning.)  For centuries, wine and port have been made here.  In fact, the Douro Valley Wine Region is the oldest demarcated wine region in the world.  The river has carved deep valleys out the land and for hundreds of years man has transformed the rich soil into millions upon millions of planted vines.  The spirit of wine and port making has been with some Quintas for generations.

Taken along the shores of Gaia, across from Porto.  Boats line the harbour ready to deliver wine and port to the masses.  Just behind us we visited the port cellars of Gaia for the day, including Croft, the oldest of them all. 

Thanks to similar dividend increases this year (20 other stocks we own increased dividends so far this year) we’ve almost now assured ourselves of passing this target later this year – earning more than $15,000 this calendar year from Canadian dividend paying stocks held in our tax-free and non-registered accounts.  To put that income in perspective, we believe that income when we retire will cover the following expenses as long as we live without spending the capital until we need to:

• Home property taxes (nearing $350 per month, estimated closer to $4,200 per year in 2018)
• Home utilities (heat, hydro, water, internet, other; between $600-$650 per month, upwards of $7,800 per year)
• x1 car insurance (currently $60 per month, estimated $720 per year)
• Fongo Home Phone (currently and just $5 per month for home phone, about $60 per year)

For sure, we can’t live on that income alone since we have lots of other expenses that need to be covered in order to retire eventually.  However, we’re working hard on saving and growing our portfolio and our capital is working hard too – as evidence in these income updates.

Stay tuned for my next dividend income update in November and thanks for reading.