Since I always DRIP my dividends, I rarely pay attention to the cash portion of my accounts. I usually use it when I add new money to invest but I have not added new money in a while now and the cash portion is growing. Last month, I used the cash portion in my TFSA to buy a number of shares in EmeraTSE:EMA. Utilities are still under my diversification target. I own many of them but I just don’t have a lot of money invested in them. This year I am focusing on balancing my diversification.
Some stats for all of you interested in numbers. To date,
- I have earned $16, 737 in dividends.
- I have invested a total of $103, 483 (in my dividend portfolio) not including dividends and DRIP
- I have a yield on capital invested of 6.01% (based on the total invested)
- I have a yield on cost of 4.91% based on all stocks purchased without DRIP shares
- I have a market yield of 4.16% based on all stocks purchased
My money works for me at a rate of 6.01%. Before you ask, today’s market value of this portfolio is $149,393. I invested heavily in 2009 and 2010 and I don’t expect the performance I have had to maintain itself. As you can see, the dividends earned play a factor in my performance.
My May dividend income is $479.21. A nice amount but there is nothing I can do with it in a month since it is spread across multiple accounts. It’s a good start to my financial freedom though. My financial freedom has two major components:
- Build a portfolio for income with compound growth. DRIPing my dividends is the accelerated compound growth.
- Pay the mortgage to reduce non-efficient debt. My mortgage strategy will drive this inefficient load to zero.
Interestingly enough, one drives building compound growth and the other works on minimizing the front-loaded compound interest of a mortgage.
You can find my full list of holdings in the Dividend Income section of the blog.
I will be making contributions in the coming weeks and I am thinking of the following:
- DH for my RESP account. It’s a higher yield stock with minimal movement in share price. That’s what I prefer for my RESP investments.
- EMA or TRP for my TFSA.
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.