Dividend Income – January 2012

With dividends, slow and steady wins the race. Remember that it’s a marathon. For those of you new to my blog, I have been tracking my dividend income since I ‘officially’ initiated my strategy a couple of years back. If you have not done so recently, I recommend you review your portfolio to ensure you are satisfied with your current strategy.

Last year, my goal was to reach $5,000.00 in dividends and I fell a little short with $4,742.25. I am still quite satisfied as I was also trying to strike a balance between higher yield and dividend growth investments that follow the 10-10 rule with dividend aristocrats. As I DRIP most of my dividends (where I can), I let the power of compound growth do its work with my dividends. It’s quite boring to watch I tell you :) In 15 years, looking back at the earnings growth should be quite revealing though.

I am going to be aggressive in my Dividend Income target for the year and go for $7,000!!! My yearly estimate currently land at $5,700 so I will need some savings to generate and an extra $1,300 for the year. If I assume 5% yield, I would need to add around $20K. That’s quite a bit of saving, let’s hope I have some dividend increase along the way to help me out :)

Dividend Income

I made some investments in the past few months with a couple in November that are starting to show in my dividend income now. I bought National Bank TSE:NA and Manulife TSE:MFCNYSE:MFC  in November and they are doing well so far. My estimated earnings for January 2012 is $515.16. I don’t make large purchases often. I do my TFSA contribution once a year but I do send $200 – $500 cheques to my DRIP shares with Computershare and CIBC Mellon every now and again. When you don’t stare at it, you realize after a while that it’s growing steadily.

Dividend Income - January 2012

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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