Dividend Income – August 2014

Dividend Income - August 2014Over 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. BCE 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.

Dividend Income

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.

 

Dividend Income - August 2014

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

Monthly Dividend Income

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.

Monthly Dividend Income - 01

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.

Monthly Dividend Income - 02

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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