September 2024 Dividend Income Update
Well hello!
I hope you have enjoyed your summer…
Might as well get right into this – near the start of a new month! 🙂
For new and established readers, this is our monthly update to share how we are progressing with our hybrid portfolio – a structure that was established approaching 15 years ago as follows:
- We invest in a mix of Canadian stocks in our taxable account – to deliver income and some growth, and
- Beyond the taxable account, we own a mix of stocks and increasingly more-low cost ETFs in our registered accounts like our RRSPs, TFSAs and my LIRA for extra diversification.
Staying boring, works.
September 2024 Dividend Income Update and Changes
Last month, I shared a number of Canadian companies that have increased their dividends in 2024, examples include:
- BEPC (5% increase)
- BIPC (6% increase)
- BMO (3% increase)
- CPX (5.2% increase)
- CNR (7% increase)
- CNQ (5% increase and more special dividends on the way?!)
- EQB (multiple times in 2024!)
- GWO (7% increase)
- NA (4% increase)
- RY (3% increase)
- SLF (3.8% increase)
- T (3.45% increase)
- And more!
Well, almost right on cue every fall, Fortis (FTS) in our portfolio (one of our largest stocks) increased their dividend by 4%….just like they’ve done every fall for the last 51 years.
From their press release:
“The common share dividend declared of $0.615 per share represents an approximate 4.2% increase in the quarterly dividend, marking 51 consecutive years of increased dividends. Fortis expects its long-term growth in rate base will drive earnings that support annual dividend growth. The Corporation’s annual dividend growth guidance of 4-6% has been extended one year through 2029 and is premised on the assumptions listed under “Forward-Looking Information”.”
Love it.
We also received a small raise for Emera (EMA) too that pushed our projected annual dividend income higher.
Finally, while all DRIPs remain turned off inside our RRSPs, we continue to run DRIPs inside our LIRA with low-cost equity ETFs HEQT along with tech-ETF QQQ. Although I’ve made a handful of changes to my LIRA (Locked-In Retirement Account) since inception in 2001, I’ve stuck with these two equity ETFs for the last few years and obtained great account returns because of it.
- HEQT is up about 17% YTD.
- QQQ is up closer to 20% YTD.
We’ll see if equity prices go even higher towards the end of 2024?!
When I add it all up, those three small changes make a BIG difference.
September 2024 Dividend Income Update
As mentioned in previous months, now that we’re well into the second half of 2024, I don’t intend to make many new purchases other than the following considerations in the coming months:
- Non-registered: more/adding to Tourmaline (TOU) or other Canadian stocks like CNQ in that sector.
- RRSPs: more XAW.
My wife and I are also working towards being ready to deploy funds for our TFSAs as of January 2025 as well, even though I don’t include any dividend or distribution income from those accounts in these reports at all…
Here is the new projected tally for our *Projected Annual Dividend Income (PADI):
*Recall these PADI updates focus mostly on our non-registered accounts and RRSPs, along with my small LIRA value. I have reported things this way since January 2023 since these are the first accounts I will use to fund semi-retirement with: part-time work + “live off dividends” = fun.
Related Reading:
To put this monthy income update into perspective for future retirement spending:
- That’s averaging about $3,886.25 per month.
- We earn over $127 per day, every day, even in our sleep.
Compared to 10-years ago…wow, time flies on this site…our annual dividend income is now five-times-higher:
I also wrote in that 10-year-old blogpost:
“There is no such thing as a risk-free investment. I do however expect this dull, downright boring approach to reinvesting dividends paid from many Canadian dividend paying stocks will yield the income we require years down the road to fund our part of retirement. Stay tuned for updates next month!”
Yup. Stay boring.
This is how we’ve decided to invest – a hybrid portfolio – that delivers dividend and distribution income from our mix of stocks and ETFs. Your mileage may always vary. Other approaches could be right or better for you!
As always: personal finance is personal.
I look forward to keeping you updated next month. Onwards and upwards for your investing journey too.
Mark
Great work Mark. I’m 62, recently retired, and have had a very similar approach to yours in my taxable account, however, I have generally been more conservative in my sheltered accounts holding primarily bonds and private debt there.
In any event after diligently and methodically investing my surplus capital over the past 30 years in Canadian dividend producing stocks, and ETF’s for international exposure, my annual cash flow is approximately $490,000. The power of compounding is truly amazing and for your younger readers putting all dividend producing stocks on a DRIP in the accumulation phase of life is a no brainer.
I look forward to keeping up on your progress.
Hi Don, that is bonkers. :)))
“…my annual cash flow is approximately $490,000.”
I can’t imagine. I that was a typo.
A diligent investing plan for the last 10 or so years has done wonders for us…I will keep the power of compounding alive inside our TFSAs for the coming decades since we’ll be drawing down other assets starting likely next year.
Totally agree: running DRIPs in the accumulation phase of life is a must.
I look forward to your updates including how on earth you accomplished that success. Phenonmenal.
All my best and thanks for the kind words.
Mark
Haha, if you had told me when I started my investing journey where things would end up I definitely would have thought of that as bonkers as well. Today my asset allocation (excluding personal use real estate) is circa 45% equities, 30% commercial real estate, 10% private equity, 10% private debt/mortgages, and 5% bonds. Given my age and circumstances this is a comfortable “set it and forget it” strategy.
Ha. Well, you’ve done phenomenally well to say the least. You’re the 1% of the 1%!!!
Congrats on the private investing – seems that has really snowballed for you and kudos.
What’s the plan to spend and enjoy upwards of $500k per year? Do tell! 🙂
Mark
Nice Mark….you may upset the diving community calling it PADI !! :o)
Excellent structure and great to see that you will probably surpass the 50K line very very soon.
Attaboy !
LOL. Thanks, Johnny! If we’re lucky, we should able to cross that income threshold sometime around mid-2025 as we consider some work-life balance changes. 🙂