Over the past year, I have not really been focusing on adding new holdings but rather increasing my current holdings. I have a good number of holdings that I can manage and I want to make sure I can synthetically DRIP since many investments trade at around $100 per share, I need over $10K to be able to DRIP one share.
Related: DRIP explained
A couple of changes are going to happen on their own as Kimberley-Clark NYSE:KMB will spinoff its healthcare dividend by creating a new company named Halyard Health. The spinoff is not completed yet and I will probably just hold on to those shares as well. Bell Canada TSE:BCE also decided to purchase the remaining shares in Bell Alliant which will have a slight impact in my dividend earnings as I will get a lower yield for my new BCE shares.
I have the honor of adding another $700 month to my dividend income! In fact, I earned $702.03 this month. I can’t wait to reach the $1,000 month. That will be a major achievement. Many shares are re-purchased with the dividends fuelling my compound growth machine.
I have TRIPLED my dividend income in the last 4 years!
When you look at the graph below, you can see that I started with an average of $250 per month in early 2010 and late in 2014, I have now averaging $750. This is due to 2 important factors:
- New money is added regularly
- Dividends are always re-invested for compound growth
Obviously, any withdrawals would hurt the curve and that’s why it’s important to start early and save continuously. There are a couple of points I can share about the graph. First, the dip you see in the middle highlighted by the red arrow is when I switched to a more dividend growth model by buying companies like Canadian National Railway TSE:CNR and Johnson & Johnson NYSE:JNJ with lower yields but consistent dividend growth.
The next point to discuss is the jump in income more recently. There is no magic investment there. I simply transferred money from another account and put it at work. I moved it away from my index portfolio to my dividend portfolio as I was finally allowed to do the transfer from my company plan.
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.