Dividend Income – June 2014

Dividend Income - June 2014My biggest month ever in Dividend Income! I will admit that it’s a slow process and you can’t stare at the numbers daily but after 4 years, I have seen growth from my savings but also from dividend increases. My 50K is all deployed as well so I should see more in the coming months.

I feel I have reached the third phase of my dividend investing process.

  • The first part was to find the investments that work for me.
  • The second part was to organize my sector allocation and my international exposure
  • The third part is to grow my holdings as opposed to add more companies to my portfolio

I started looking into how much I want to hold in each of my investments as I find that adding more companies would make me venture in investments that do not fit my investing model.

  • Companies essential in our day-to-day life
  • Companies with an economic moat
  • Companies with a history of paying dividends
  • Companies with dividend growth (yeah, there are exceptions …)

Related: Why dividend investing?

Dividend Income

My record breaking month for June is $730.24. I am now hoping I can reach $1,000.00 before the end of the year. I will need to add money before the last three months of the year to ensure I can get there. Can you imagine what the dividend increase will do to my monthly income next year? Just 5% will give be an extra $50. At the moment, my average market yield is 3.94%. That should give you an idea of my investments. If I was focused on income, the yield would be higher but focusing on good solid companies, the yield is usually lower as there is growth in stock appreciation as well as dividend growth.

The mistake I did when I started was looking for high yield stocks and it took me some time to adjust and focus on dividend growth. Not because high yield stocks are wrong but because I have a long time to invest. As I near retirement, I will probably shift more into high yield stocks.

Related: Dividend Investing with the 10 / 10 Rule

Dividend Income - June 2014

 

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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