Dividend Income – March 2012

Dividend IncomeThe greatest aspect about dividends is that no matter where you are and what you are doing, the dividends keep on rolling in. This dividend income report is brought to you from Maui đŸ™‚

Dividend Stocks Added

Back in November I made a couple of stock purchases with National Bank (TSE:NA) and Manulife Financials (TSE:MFC). Both of those additions have now provided me with dividends already and both stocks are doing well since I bought them. In fact, NA is up 19.78% and MFC is up 24.64%. I did write late last year that the life insurance stocks may be ready to invest it.

With my new TFSA contribution room for 2012, I have bought Husky Energy (TSE:HSE) and added to my Power Financial (TSE:PWF) position. Both of them have room to grow and will provide me with a good yield in the high 4%. Husky Energy and Power Financials are not Dividend Aristocrats at the moment and the dividend growth is something I will keep a pulse on as I am a huge fan of dividend growth for compound growth.

The major oil players still listed in the dividend aristocrats list are Imperial Oil and Suncor Energy, both of which offer very low yield not as attractive to me at the moment. Talisman Energy was an option but I wanted a major player and Husky Energy is twice the size, a better P/E and a sustainable payout ratio. Nevertheless, Husky Energy is not a stock with many mentions by analysts and the other players usually still the spot light. With Power Financial, it’s only a matter of time until they get back on the list in my opinion but only time will tell. They partially own IGM Financial which is a dividend aristocrat and Great West LifeCo is simply going through the recent life insurance pains.

Dividend Income

As for my March dividend income, I earned $337.91. A little lower than my previous two months but much higher than last year with an increase of approximately $60. I continue to add to my investments with Computershare and Canadian Stocks Transfer little by little. As you can see below, most of my transfer agents holdings are utilities or financials.

Dividend Income - March 2012

How many stocks do you think you need to have? I wrote a post in my first year following an article about 10 stocks to retire on and it’s clear that 10 stocks isn’t a lot. Is 20 stocks enough? I have over 20 already and I have barely bought many of the US conglomerates I would like to own that still provides a strong diversification.
Readers: Do you have any stocks on your radar?
Disclamer: 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 decision at your own risk – see my full disclaimer for more details.

Image: Simon Howden / FreeDigitalPhotos.net

8 Responses to "Dividend Income – March 2012"

  1. All the major insurance firms are raising their premiums for new plan holders so that should help with their bottom line. I have lots of GWO and recently got some SLF. Great job on the dividends. You’re breaking the $5K annual mark now.

    1. The Passive Income Earner · Edit

      Thanks for the comment. I think the Life Co have bottomed now based on how the markets are pushing the prices up. I got more exposure to GWO through PWF as well.
      I am hoping to break $7,000 by the end of the year and take care of my wife’s TFSA to achieve that.

  2. You’re rockin’ man đŸ™‚

    How many stocks do you think you need to have?

    I think you need 40 or so. That would be good, from multiple sectors.

    Heck, 30 of the highest yielding stocks in Canada are in XDV. If you own half of those, another 15 big caps in XIU and let’s say 10 U.S. dividend-payers, then that’s pretty solid IMO and that’s your 40. Own enough to turn on DRIPs or turn them off, and you’re laughing all the way to the bank.

    I’ve got a post ready to go about this very topic and why this is my number. I hope to get that up in the another week.

    How about you? What’s your magic number?

    Great work again Passive.


  3. Hey would it be a good idea to invest only in different REITS and utlities?

    i find alot of confusing information out there all i hear is to diversify, but how about just REITs and utlites?

    1. The Passive Income Earner · Edit

      Diversification isn’t always about different companies but also about different assets. REITs and utilities are fine. In fact, you add telecoms and banks and that’s pretty much what I started with. What I would recommend is to put a plan on diversification that you like based on how much you have to invest. When you start, a few sectors are good but as you start having more money, your exposure grows and it’s recommended to diversify. Diversification, I believe, with grows the more money you have – so it really depends on how much you have to start with and your long term goals.

  4. well i just finished school and got a full time job, and still at home i think this is the prefect time to be investing, i like Riocan, colloway etc but thier kinda high right now, should i be investing in stocks based on divided increase? or if i just invested a high yeild one for now? like around 8% or 9%.

    i guess i should start of with reits, utilites and diversfy from there?

    MFC looks good for fiancial? your thoughts?

    1. The Passive Income Earner · Edit


      Congrats on being able to invest so early. One word of caution, chasing high yields can be a mistake. A high yield is usually a sign of trouble. Income trusts and companies operate differently and you need to look at different numbers to assess the value.

      I would recommend you do your research on the companies you are interested in and set purchase price targets. Understanding the business is very important and take the time to listen to a quarterly conference call.

      Take your time and go through one business at a time.


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