Dividend Income – July 2017

Dividend IncomeMy dividend income is up 33% over last year for the month of July. It’s great to see my money at work like this.

I am expecting to grow my dividend by 26% this year compared with last year. Three factors play into this growth:

  1. New Money Invested
  2. Dividend Re-Invested
  3. Strong Dividend Growth Stocks

You may think that a 5% dividend yield stock is great but if it doesn’t have much growth, a 3% dividend growth stock will gain on the high-yield stock and overpass it with time. It’s a simple factor of compound growth as explained in the Wealth Triangle Guide.

Now, an income only investor isn’t going to like that because they forgo income in the short term and that might be the right decision but a long-term investor should consider the dividend yield growth of a strong dividend growth stock. Not only is the payout increasing, but since the dividend payout cannot really get out of line, the stock should also appreciate so it’s a double win.

Dividend Yield Growth

I adjusted my dividend investing approach and focused on dividend growth stocks about 5 years ago and it’s starting to pay off.

Stock Trades

No transactions for the month of July and I have just reached my minimum investment amount of $1,000 in one account from savings. My current thought is to add it to Saputo (TSE:SAP) based on the need to add to the Consumer Defensive sector but I need to assess if there are other opportunities.

June 2017 Trades

  • TD Bank TSE:TDNYSE:TD saw more money added to the account making it my 6th largest holding.
  • Enbridge TSE:ENBNYSE:ENB  saw some money added to top up the energy sector making it my 3rd largest holding.
  • Kimberley-Clark NYSE:KMB also had an increase of fund making for the consumer defensive sector.
  • Cardinal HealthNYSE:CAH is a new addition to the healthcare sector.

Sector Diversification – July 2017

My current asset allocation is as follow. I am keeping 2 months in place so others can see how it possibly changes from month to month.

You can see the movement in each sector between the 2 months. The only changes are the dividend re-invested and the stock price movement of the sector. See my portfolio holdings for the details.

Sector Diversification - July 2017

Sector Diversification – June 2017

Sector Diversification July 2017

3 Simple Steps – Dividend Stock Selection Process

Dividend Income

My July dividend income is the low month of the quarter with $1,225.67. There should not be much movement in the coming months as I usually plan my savings to make my available contributions to my TFSA and RESP for 2018.

Dividend Income - July 2017

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.

Image: Master isolated images / FreeDigitalPhotos.net