Dividend Income – April 2017

Dividend IncomeThe first few months of the year are usually active for investing as new contribution room becomes available and the RRSP deadline approaches. As long as I have some contribution room in my RRSP, I maximize my RRSP opportunities to put my money at work. If there are no surprises, during the year, the first few months of the year is when I do most of my investing with new money.

Stock Trades

I have received my tax refund and since I maximized my RRSP contribution in February, some of the money is needed to pay bak the line of credit but some of it will be invested in the coming month.

Otherwise, I did a transfer of RRSP from my employer’s defined contribution plan to my RBC Direct Investing and put all of the money at work. I am one to believe that my money needs to work for me and invested it all without worrying about whether or not the stock market is overvalued. I should see a bump in dividend income in the coming months after adding to MRU.TO, IFC.TO, BPY.UN, BPI.UN and CNR.TO.

Since the stock market never really sleeps, below is the diversification status of my accounts. As you probably know by know, I am happy to invest $1,000 at a time for a 1% cost. I find having my money at work pays in the long run.

Diversification - April 2017

3 Simple Steps – Dividend Stock Selection Process

Dividend Income

My April dividend income adds up to $1,042.66. My dividend income is now officially weighted towards the third month of the quarter. Not a big deal as one should not live to the monthly income but rather be ahead from a cash perspective. The overall annual income is also what needs to cover your expenses – hopefully without the need to withdraw capital. My monthly average is approximately, $1,253 to put it in perspective.

Considering my investing strategy for selecting a stock is based on the Chowder Rule and the 10/10 rule where a stock must have increase its dividend by 10% on average over 10 years, it’s understandable that I can see a good increase annually. See the growth below which includes dividend from new money invested as well as DRIP shares.

It takes a while to have enough money to DRIP shares effectively. 85% of my holdings are now able to DRIP at least one share. If you cannot DRIP, focus on the minimum you are willing to invest based on your cost. Questrade is the cheapest when starting. With the 1% cost approach, you can invest as little as $600.

Annual Dividend - April 2017

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 – April 2017"

    1. @Chadi
      I use market price. Figuring out the price to buy a stock is not something I am good at and can predict. More often than not, when I waited in the past, the price never went down. I am in for the long run and I buy often so I can always average down.

      Reply
      1. I have seen transactions where they have charged me over $20 in commission. I only trade low volume with Questrade where the commission is $4.95.

      2. @Joe
        What type of investments were you buying? Did you bring it up with them and what did they say?
        I am curious as it is written in black and white on their site. Not that I have bought 1,000 shares before 🙂

  1. Nice income. Over 1000 every month is fantastic. Curious how long did it take to transfer from your work to the rbc direct investing account. Currently we are in the process of transferring from a broker to our rbc di account. The broker said it takes normally 1 week. Rbc says 25 business days. It’s been over a month now. Crazy how slow it’s going Imo

    Reply
    1. @Passivecnadianincome

      From the plan, it’s about 2 weeks. I dropped the forms at RBC. The instructions were to sell the securities and just transfer the money.

      When I switched from Scotia iTrade to RBC, it took longer and then I had DRIP so it needed to happen twice.

      Reply
  2. If you’re looking to augment your monthly income, you may want to look at Smart REIT. I wrote about them here.

    https://financialfreedomisajourney.com/smart-reit-stock-analysis/

    They are holding their annual unitholder meeting May 11th in downtown Toronto. I was hoping to attend and then walk a few blocks to the TELUS AGM but another commitment has come up and I will have to pass on both. Shame.

    I am not a REIT fan and, in fact, this is the only REIT I own. I chose to invest in it a couple of years ago because the company is very well managed and the projects they have on the go are truly impressive.

    I am not trying to pump their stock. Just check out their website and see for yourself. I have seen the work going on at some of their key projects.

    http://www.smartreit.com/

    Reply
  3. I’m interested in learning more about Canadian companies that allow for DRIP. Have you written about it (for Dummies) and/or know of a good place to start? Regards, Sarah.

    Reply
    1. @Sarah

      DRIP is either full share or partial through a transfer agent.
      – Nearly all discount brokers support DRIP, just ask them.
      – Partial DRIP is done through taxable accounts and through Transfer Agents such as Computershare. It’s perfect to start and get kids setup but I have since moved my holdings to my discount broker.

      Reply

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