2014 is coming to an end and I have my last dividend income report for the year. I have to admit that in the dividend income world, there are rarely negative results. It usually requires a catastrophic event or a major change in competitive abilities to impact the dividends of a company negatively. There are, obviously, exceptions to the rule but they are not the standard pattern.
While compound growth works its magic on my portfolio, the easiest way to increase my dividend income is still by investing more money which starts with saving it first. While I don’t discuss savings much, I am quite diligent in my savings goals and paying myself first. In fact, I already have my $5,500 TFSA contribution for 2015 and I also have my $5,000 RESP contribution ready for January 1. It is the first year where I am ready this early but I worked for it. It was a goal to start saving for the next year ahead of time as I want my money to work for me on the first of January as opposed to try to reach the contribution limits during the year. I can spend the rest of the year focusing on my RRSP and building the TFSA and RESP contribution for the following year.
My dividend income for December 2014 is a record-breaking $893,08! How cool is that? I don’t trade in and out of stocks and I don’t panic when the markets (and the media) go crazy. A good company will continue to sell its product and services and return money to its investors. It’s pretty simple when you aren’t looking for a get rich quick.
I believe my current diversification is serving me well in that I am not exposed to any sector by more than 15% and I have international exposure to not be tied to just one economy.
It’s interesting how you can approximate future earnings of dividend income. If you have an idea of how much you will add and what your dividend income growth will be for the year, you can estimate your future earnings. My current estimation has me earning over $10K for 2015. A number of companies have started increasing their dividends and many usually do during the first couple of quarters. An investor really only get to see the benefits of a dividend raise for 2 payments towards the end of the year. I should reach $10,500 but I am curious if I can reach $11K for next year. I will need to have some pretty aggressive saving goals.
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.