Dividend Income – April 2014

Dividend IncomeThe spring is here and the markets have started to show how they can drop at a moment’s notice. Did you panic? I hope not. I think it was a moment to rejoice that we had a buying opportunity. I personally did not make any transactions during that period. I just did not have money ready to invest. I also wasn’t worrying about the drop since my portfolio is setup for compound growth return with my dividends and the DRIP programs.

I have been a dividend investor for 5 years now. In 2009, after the market drop, I changed my investment approach and started moving away from my financial advisor and the mutual funds. I had a solid enough understanding to tackle it on my on. I’ll be up front that I did not know about index investing at the time either and although it has many good merits, I find that markets fluctuates too often and I would prefer to have consistent growing income through dividend investing.

Related: Why Dividend Investing?

The graph below is a representation of my dividend income growth versus the TSX index. It’s a reminder that my income can always be in an upward movement and I can avoid the market fluctuations. That means I don’t have to obsess over having so much bonds when I retire because I am afraid of the markets.

Related: Should Your Bond Allocations Match Your Age?

Dividend Income Monthly Trend

Dividend Income

In April, I have 21 investments paying me dividends providing me with a monthly dividend income of $603.91. So far, with my annual estimation, I won’t reach $700 per month this year. Practically all my holdings have raised their dividends for the year already so all I can do is put some new money in or transfer money from my defined contribution RRSP plan (DCP). As it happens, I do plan to invest new money and transfer money from my DCP. Will it be on time to see my dividend income reach $700 per month?

I hope by now you have noticed that there isn’t any magic formula to get rich. I have stocks that doubled since I bought them and I am not rich. The formula is about having a plan, executing it and being diligent regardless of the income you make. You have to make more than you spend in order to be able to invest the rest.

Dividend Income - April 2014

Readers: Do you have any stocks on your radar?

Disclaimer: Please note that this blog post represents my opinion and not an advice/recommendation. I am not a financial adviser, I am not qualified to give financial advice. Before you buy any stocks/funds consult with a qualified financial planner. Make your decision at your own risk – see my full disclaimer for more details.

Image courtesy of Master isolated images – FreeDigitalPhotos.net

4 Responses to "Dividend Income – April 2014"

  1. Great job as always PIE. Like you I’ve found that the best way to increase monthly income is through savings. Most of the stories from the young ‘rich’ investors have a similar thread of starting off on margin or a big ‘risky’ investment play that payed off.

    I’m sticking to slow and steady.



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