Dividend Income – August 2019

Dividend Income - August 2019

Regardless of the market swings, my dividend investing strategy remains. I will continue to look for strong dividend growth stocks. In fact, my dividend income for the year is forecasted to grow higher than my initial estimate. I estimated earning $23,310 for 2019 and I am currently on target to earn $24,150. My estimates usually attempts to take into account new money as well as dividend growth but I have been surprised for the last few years to underestimate the annual dividend income.

My dividend yield is not high with 2.75% but that’s expected since I have low dividend yield stocks with high dividend growth. It is serving me well in the accumulation years. As I switch to a dividend income portfolio in the coming years (over 5 years), I will see my portfolio performance go down in proportion to the dividend income stocks I hold but my dividend income will go up.

The relationship between dividend growth and dividend income is an inverse relationship. Be aware of that.

Stock Trades

Since I officially have a retirement timeline, my strategy now is to primarily buy dividend income stocks. 

In July, I did the following transactions:

Kimberly-Clark is a good company. As it happens, my RRSP account is full and I cannot add money. I have to manage with the money in the account. It’s an interesting challenge when you cannot add money. I essentially optimized KMB with CSCO. The angle on Cisco is 5G. 5G, if you don’t know, is going to be a game changer.

A full position for my portfolio is when the stock reaches 5% of my portfolio weight. If it goes above 5.5%, I will consider taking profits.

Dividend Income

My August 2019 dividend income is $2,428. It’s the highest month but my months are not balanced. For the curious, I apply a 1 to 1 conversion to my US dividend. I keep it in the same currency as it simply doesn’t do anything to inflate the amount. If I ever travel to the US, I need USD or if I travel to Europe, the Euro is more expensive so I figure that it balances in the long run.

Dividend Income - August 2019

 

I am going to start showing what the dividend market yield of my portfolio looks like as I transition to a dividend income retirement portfolio.

Monthly Yield - August 2019

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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