Dividend Income – August 2013

Dividend IncomeMy portfolio valuation got hit a little hard after the market news on the Verizon impact in Canada and Potash’s pricing war. However, amidst the negative news, my dividend income keeps on rolling in at the same rate. It is so nice to have a dividend income that doesn’t react to the markets. Imagine one day being able to generate $50K in dividend income across all your accounts and not having to worry about economic news and the market swings until your holdings cut their dividends. It’s just peace of mind. Not only that, if you pick the right stocks, the income grows regardless of the market swings. If you can find stocks with a history of growing their dividends at a 10% rate annually, you are golden. How many retires have a growing income in retirement?

Dividend Income

My August dividend income is a low $377.29 when compared with the past 2 months. The drop is mainly due to some rebalancing I did which shifted the income to other months. I am not currently worried about having an even monthly income since I just re-invest it.

Dividend Income - August 2013

Recently, I have been adding to EmeraTSE:EMA. I used to hold it in my RRSP and sold my holdings to purchase US companies as it is the best account for holding US investments from a tax perspective. I was still pleased with Emera at the time and my plan was always to buy it back in my TFSA. It’s paying almost 4.50% which is pretty nice. It’s not a growth stock by any means and it pays a good yield. I am also interested in further looking into Canadian Utilities TSE:CU to see if it can be a good fit for my portfolio.

I was reading the Dividend Growth book my Mike @ The Dividend Guy Blog and I really like his quadrant approach about looking at stocks through 2 axes (income & growth). I have not yet plotted all my shares but I did split them into growth and income stocks. I have the following ratio now.

Below is what my monthly income looks like since 2010. The month to month varies a bit but the quarterly average shows the growth. What I like is the consistency and growth compared to the S&P / TSX. The market volatility is not present in the income I generate and it is why I am happy to be a dividend investor. Withdrawing from just

Monthly Dividend Income

My tracking spreadsheet highlights my stocks with prices below my purchase price and I can say that REITs are primed for purchase at the moment. What do you think? I believe many investors sold in anticipation of higher bond rates … making them an attractive purchase. You can find my full list of holdings in the Dividend Income section of the blog.

DISCLOSURE: Please note that I may have a position in one or many of the holdings listed. For a complete list of my holdings, please see my Dividend Portfolio.

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 investment decisions at your own risk – see my full disclaimer for more details.

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