The good thing with dividend income is that it ignores all the market fluctuations. We may see the markets go down and portfolio value adjusts but my dividend income continues to work its magic – the compound growth magic.
My July dividend income is $575.97. It’s worth noting that at the moment, I am treating all US dividends as Canadian dividends and ignoring the exchange rate. As the exchange rate changes, I will adjust it but it’s a fair bit of extra accounting to accurately reflect the actual value and I am happy with my current valuation. I have 30% of my Dividend Portfolio in US investments at the moment and looking forward to benefiting from a strong US dollar.
My first TFSA contribution is not yet done but I have a couple of thousand dollars planned against it and later this year. I have not decided what my investment is going to be within my TFSA yet. I may add to a current position or take a new position. On the topic of new positions, I recently added Potash (POT) to my holdings. Over the past few years, I was able to grow my dividend income by $1,000 a year but this year I have only managed to increase it by $500 (estimated target growth) and it all relies on how much I can really add to my portfolio. Even with over $140K in my portfolio, my main dividend income driver remains my savings.
I have made some more rebalancing in my portfolio and will cover more in a future post. It’s fair to say that financials are not my top sector anymore and POT covers a new sector in my portfolio with resources.
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.