It’s the earnings season again and the Canadian banks appear to be doing well again. So far this year, out of all the Canadian dividend stocks tracked through Dividend Snapshot, 53 companies increased their dividend payment. A total of 53 companies since the beginning of the year doesn’t seem much but keep in mind there aren’t that many dividends paying stocks on the TSX and not that many Blue Chip Canadian stocks.
Considering not all dividend payers are created equal, choosing the right one is then up to your investing rules. I use a version of the Chowder Rule and the 10-10 dividend growth approach. It allows me to find strong dividend growth stocks.
No trades in the past month but I am now looking at making an investment on both the Canadian and US side. Here is my current short list.
Canadian Dividend Growth Stocks – Financial Sector
US Dividend Growth Stocks – Healthcare
As per usual, my process is to look at my sector diversification. Assess where money needs to go to bring the sector to the desired target. Markets move and I find the sector diversification in my portfolio tracker is a great way to assess the stocks that fall behind. The movement is due to the following factors:
- Other sectors pulled ahead
- Targeted sector pulled back
- Or both at the same time
It’s a systematic approach that can allow an investor to not use emotions when selecting an investment. As you can see, I am behind with consumer defensive, energy, healthcare and Financial Services. I plan on adding to the financial and the healthcare sectors this upcoming month. I will add to existing holdings for the financial sector but I am contemplating adding a new holding for the healthcare as JNJ and ABBV do not have 10% dividend growth even though they are remarkable holdings.
My May dividend income adds up to $1,053.99. I don’t plan to balance the months or the USD dividend either. It doesn’t really matter as once I am ready to live from my portfolio, I will plan to have 6 months of cash on hand.
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.