Weekend Reading – Dividend mentors and monthly income
Welcome to some new Weekend Reading: about dividend mentors and monthly income. You can check out some other recent Weekend Reading editions below:
Going back a few weeks, I discussed whether Canadian home bias is really a big issue or not.
Have an awesome weekend and enjoy these articles over the coming days!
Mark
Weekend Reading – Dividend mentors and monthly income
Wow, incredible how some bloggers and investors are doing of late, largely thanks to juicy dividend raises in Canada and the U.S. Here are some investors who are saving diligently, investing wisely, and sticking with their investment paths that caught my eye:
Kudos to Melissa for calling out one of her biggest dividend investing mentors recently – her 90-year-old mother.
“She’s still active today in reading the Globe & Mail every morning, checking her stock charts, and watching the markets closely. Recently, she asked me to research an investment newsletter as she thinks she may want to subscribe, which is clear evidence there’s no slowing her down.” Great stuff.
Mr. Tako Escapes continues to earn more income to cover his family’s expenses by sticking to his long-term investing plan.
“I also fully expect that annual spending will remain below our total dividend income for the year. This is a good place to be! For the entire year, I’m projecting a total dividend income of $62k. Without any surprise expenses, our annual spending will probably be around 1.7% of our taxable portfolio.”
Well done over at GenY Money with her income update. Seems like recent Canadian bank hikes treated her portfolio very well and she’s been very busy buying more financials!
“Here are some of the portfolio changes last month (this is probably the most excited I have been in a while, recording all these dividend increases):
- National Bank (NA.TO) announced a whopping 22.5% increase to their dividend payout, from $0.71/share to $0.87/share.
- Power Corporation of Canada (POW.TO) increased their dividend by 10.2% to 0.495/share from 0.4475/share per quarter.
- Sunlife (SLF.TO) increased their dividend by 20% from $0.55/share to $0.66/share quarterly
- Manulife Financial (MFC.TO) increased their annual dividend yield by 18% from $1.12/share to $1.32/share
- Bank of Montreal (BMO.TO) increased their dividend by 25.5% from 4.24/ share to 5.32/ share annually.
- TD Bank of Canada (TD.TO) increased their dividend by 13% from $0.79/share to $0.89/share each quarter.
- Bought more iShares S&P/TSX Capped REIT Index ETF
- Bought more National Bank (NA.TO)”
My Prudent Life shared his TFSA income journey.
The Dividend Guy welcomed some early Christmas gifts along with many other dividend investors – with recent Canadian bank dividend increases! Mike discussed that and more on his recent podcast.
Other Weekend Reading
I enjoyed this interview with respected financial guru Moshe Milevsky on Jon Chevreau’s site.
Moshe isn’t a fan of the 4% rule either, calling it very “one-dimensional” in that it’s just a per cent rule. Dr. Milevsky counters to say any retirement draw down plan must be at least two-dimensional; you must consider what you have now and “next year if this is what happens we’ll do that…”. Sounds about right to me and very much aligned to any Variable Percentage Withdrawal (VPW) strategy.
You can find a link to this strategy and a free spreadsheet to toy with, in these posts below along with some further reading:
Why the 4% rule doesn’t work for FIRE (Financial Independence, Retire Early) at all.
Here is a proven path to ignoring the 4% rule for retirement.
This is why any VPW method makes more sense than any 4% rule.
Why VPW works – it essentially allows you to:
- increase your spending in “good years” and,
- decrease your spending in “bad years” therefore giving investors psychological ease.
Should investors be worried about alternative assets? Yes.
Nice podcast about finding some mental health balance on Explore FI Canada.
Another BIG thanks to Rob Carrick who highlighted the following post from Cashflows & Portfolios recently:
ANOTHER VOICE SAYING TAKE CPP AT 70
“Call me impressed at the level of engagement Globe and Mail readers have shown in the question of when to start Canada Pension Plan retirement benefits. This is an important subject and everything we write on it gets good traction with readers. Here’s the latest in a long sequence of articles advocating for waiting to start CPP at age 70 as opposed to taking it early at 60 or at the default age of 65.”
Thanks to Accidentally Retired for including yours truly in the latest FIRE Insights Survey. Some great and funny answers to some great questions.
“The truly rich people I know are not consumers. They are owners. They own assets, businesses, and debt. They are often lending money to individuals and organizations instead of borrowing it to buy consumer products. The world’s economy is built on consumerism. The primary preoccupation of modern society is to acquire consumer goods.” Read more from Darious Foroux on consumerism here.
On my site recently:
Some tax tips and general guidance on year end financial planning from respected author and tax expert Neal Winokur – including a deep discount off his tax book!
Why financial planners should not be worried about FIRE including a couple with $1.8 M invested.
Last but not least, if you were lucky enough to have a VERY high and sustained savings rate, and strive to “retire” at age 32 with $1 million invested, it is even possible to retire?
What might your sustainable spend be?
Read on and find out – we have that answer here!
It has been mentioned that the omicron variant is likely to “steer the direction of the pandemic.” That’s making news in this MoneySense edition by Dale Roberts.
Dale also wrote about shrinking Canadian pipeline dividends from Enbridge and TC Energy. Will this continue to happen? What say you?
Always FREE resources
There are always more articles and free resources on my site:
Learn about dividend investing and how I invest.
Here is my latest income update, a November update is coming soon!
I keep my ETFs resource page updated regularly.
I post free retirement case studies and publish many early retirement drawdown ideas on a dedicated page.
Save, Invest, Prosper!
As always, check out my Deals page.
Have a great weekend!
Mark
Mark
My name is Mark Seed - the founder, editor and owner of My Own Advisor. As my own DIY financial advisor, I'm looking to start semi-retirement soon, sooner than most. Find out how, what I did, and what you can learn to tailor your own financial independence path. Join the newsletter read by thousands each day, always FREE.
Thanks for the mention Mark, Canadian Financials Dividend Increase Party week was fun! Have a great weekend.
Best. Early. Christmas. Presents. Ever 🙂
All the best.
Mark
Thank you Mark for this great post! enough links to keep me busy reading for a week 🙂
altough I’m new to the dividend growth strategy but I’ve read a lot about the disapointment in the dividend increases for ENB and TC and for myself I would take that 7% ENB and almost 6% TC safe yield anytime of the day and I’m planning on holding for long term and adding to them , it’s amazing how those two companies and many other Canadian companies are divesting from fossil fuel .
Ya, that’s the thing right Gus – you can have your yield or capital gains but you usually can’t have huge doses of both. Just doesn’t typically happen.
I’ll continue to hold ENB and TRP for the coming years. No intention of selling and will keep DRIPping both. Like Bell, Telus, I see ENB and TRP as largely income stocks vs. higher growth but that’s OK with me since I will be relying on that income in about 3 years for living expenses.