Dividend Income – November 2013

Dividend IncomeThis recent bull market has gotten many predicting a drop these days. What’s interesting is that I was listening to Cramer’s Mad Money this week where he talked about how institutional investors are now working for their year end bonuses. Some have made it and playing it safe, those that have not, are going for the hail maries. That means, with their buying powers, they can really shuffle the cards for some entry and exit points. Their volumes alone can trigger warnings …

However,  Carl Icahn had a different perspective on the current valuations. Many have seen higher EPS but not because the earnings are better but due to companies buying back shares. With low interest rates, it would appear that Icahn sees a mirage in the recent earnings and questions the sustainability of the earnings.

As usual, I am going to ignore both 🙂 and stick to my dividend approach.

Dividend Income

Not an exciting month on the dividend income front. I will make $415.68 this month. As usual, I DRIP everything I can but many of my holdings trade really close to $100 per share. I would welcome a stock split any time. It currently looks like I will finish the year with just a little over $6,300 in dividends this year. I am a fair bit short of my initial goal of $7,000. I simply did not add enough money this year. I added just over $10,000 and it was not enough to move the needle past $7,000. Savings are so important!!!

Dividend Income - November 2013

I made one adjustment last week and decided to take some profits in Rogers Communications (RCI.B) and add the proceeds to Potash Corp (POT). My Telecommunication sector was a little overweight and my RCI.B holding had gained a fair amount since I purchased them. That’s the type of rebalancing I do. Both happen to be in the same TFSA account which doesn’t trigger any type of taxes or withdrawal management.

Related: How To Rebalance Your Stock Portfolio

I have added some funds to my RRSP and planning to add one new position after consideration. I plan to do an analysis of Kraft Food Group (KRFT) vs General Mills NYSE:GIS. Has anyone got any thoughts? I was reluctant to add another holding and my consumer goods sector is already above my target ratio but GIS is a dividend aristocrat with a 10% dividend growth annually. Both of the companies have a dividend yield above 3% which is quite attractive. Another option would be to add to my energy sector by adding Suncor TSE:SUNYSE:SU  or adding to Enbridge TSE:ENBNYSE:ENB . Well, I got some US $$$ to invest and I am looking into my options. Enbridge does have a nice dividend growth too. I can hold ENB in US dollars too since it trades on the NYSE. I could simply journal it over to the TSX when I want CDN money.

You can see the list of stocks I own in my new Stock Holding page. I decided to split my dividend income from my holdings so that I can better represent my list of stocks and performances.

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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