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 🙂

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 (TSE:IMO) and Suncor Energy (TSE:SU), 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