Dividend Income – June 2016

Dividend IncomeThe markets finally appear to be done overreacting to the Brexit adjustment. It was really just another moment on the stock market as with all the moments before. Did you take advantage of any opportunities? I did not. I just stayed the course with my stock holdings.

Every now and again, the question about having a balanced monthly income comes up and while it’s not something I focus on, I took the time to outline the monthly income investment options for investors to understand the potential limitation with monthly income. While there are benefits, many products have unique approaches to providing you with a promised monthly income. It’s important to understand them. Especially when it comes to products such as BMO Monthly Income Fund or ETF.

Dividend Income

My June dividend income makes a new high with $1,227.91. My most recent purchases, which was really a few months back, have started to contribute to my dividend income. Most of my dividend investment have also seen their dividend increase for the year. I am not expecting much on the dividend growth front for the rest of the year. However, I do DRIP a good number of shares in total which is nice to see. My money is at work at all times.

Dividend Income - June 2016

Many of my holdings now have excellent dividend growth potential based on their historical performance. With the current number of shares I DRIP, my money making portfolio can generate the compound growth I need. What is important to understand is that the dividend income for many of my recent purchases such as NYSE:V, TSE:MRU, or TSE:SAP will have a meaningful contributing effect in the future rather than now. Dividend growth investing needs to consider the future income potential of an investment and that’s why understanding the past for many stocks is very important. I have settled on looking at 10 years as it usually covers at least one stock market downturn and it also reflects the current management approach to the business.

Readers: What’s your approach on dividend growth? and are you investing for retirement or are you in retirement?

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

13 Responses to "Dividend Income – June 2016"

  1. my problem is that i have too many stocks and have to figure out how to whittle them down……sigh….i am having a difficult time trying to decide

    congrats dividend earner…and thanks for sharing

    k

    Reply
    1. @onarock

      Do you have investment rules? Do you have the reasons why you bought the stocks? I find that without those, it makes it an emotional challenge as opposed to a rational process. The biggest mental change you may need to do is move one once you have made the decision. Don’t second guess it.

      Reply
  2. Congrats on the new June high. That is a good amount of dividend income to receive in one month.

    I have been wanting to pick up some V also. It just never seems to go down in price for me. I keep thinking that it will happen but just no significant pullback since I have been watching it. I am like you and think that it will be a great dividend grower into the future. Thanks for sharing!

    I

    Reply
  3. Hi Dividend Earner,
    Congratulations on reaching the $1228 dividends in June. Im sure it would have taken lot of time and disciple to stick to a strategy and reach this level. Well done.

    I have a question reg. opening a brokerage account for investment. Is it possible for an individual in Toronto to open a brokerage account as a sole proprietor (business) in addition to a separate account for personal (individual use). Basically I want to use two accounts – one for personal and one for business where I can use speculative investments like foreign equities, options, etc. How will these be treated from taxation stand point?

    Reply
    1. @sridhar

      Thanks for the kind words. I don’t think you can as sole proprietor as everything from a tax perspective is still under your name. If you were to incorporate, you would create a new entity which could have accounts in its name. This is where a good tax accountant can be worth while to have.

      Reply
  4. That’s a very impressive total for passive income for the month of June. That sum can definitely pay for a lot of monthly expenses. I reinvest all my dividends automatically for now. I don’t plan to tap any of the passive income for many more years. Thanks for sharing.

    Reply
  5. Hi Dividend Earner,

    After looking at your dividend income crossing $1k mark I have an interesting question.
    Once a portfolio reaches a size big enough to generate sufficient dividend income the investor (say you) don’t necessarily have to make fresh money in to investments (although you may like to).
    At what level of portfolio size or say monthly dividend income would you comfortably say that you don’t need to add more fresh funds, but instead you can re-invest and keep growing your portfolio at a slow steady pace.
    I personally feel that if I hit $1000 per month level today I would be able to just re-invest and grow even if my other sources of savings dry up.

    Reply
    1. @Sridhar

      I don’t think I have reached that milestone. My first thought is when I have enough to retire but that’s a tricky question because having enough to retire means controlling your expenses and reaching a satisfying balance.

      Reply

Post Comment