For the first time, I will be showing the split in dividend income between my $CDN and $US dividend income. For simplicity of math, I have always included my US dividend without any currency conversion. I am not actually setup to track the currency conversion for every month of earnings and since the money stays in $US, I did not see the point in converting it as it can always change. The overall account values is setup to show the currency exchange impact which is really all that matters.
My February 2015 dividend income landed at $815.33 with the US dividend income treated like a Canadian dollar. It’s simpler that way but you can see the split now. Dark orange is $CDN while the light beige is $US. The balance of income generated is just pure coincidence. Nothing was planned to reach the balance.
Interested in buying US companies? Staying away due to currency exchange rate? Fear not, there are a couple of ways to still buy into the US market.
- Buy cross listed stocks and hold them in your $US account
- Buy a Canadian ETF following the US markets.
My US investments have provided me with a bigger lift than my Canadian stocks in the past 5 years and it’s only natural due to the economic differences. It can hurt your overall performance if you stick to Canadian stocks, the earlier you learn about managing US currencies, the better you will be.
Related: How many stocks should you hold?
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.