Dividend Income – October 2013

Dividend Income - October 2013The economic situation around the US spending seems to be on a break until January when they will need to yet again look at the debt ceiling. Overall, my portfolio wasn’t really impacted nor was I worried about it. In fact, I was curious if there would be opportunities. As you can see below, my dividend income continues to come in like clockwork. As long as the companies you invest in are healthy and continues to meet the reasons why you purchase them, you should be good.

Dividend Income

There is definitely no way I can make $7,000.00 this year in dividends. That was my goal for the year but, unfortunately, I have not added enough money to my dividend portfolio to reach that goal. My automated RRSP contributions go in my defined contribution plan with my employer and I need to save above and beyond for my dividend portfolio. However, I was able to make a small contribution to my RRSP and I simply added to KO this month. Last month I added to KMB. Those contributions are usually around $1,200 and that’s an amount I am happy to purchase shares with for the price of $9.95.

Related: How To Maximize Your RRSP

To increase my dividend portfolio contributions, I do a couple of small actions.

  • I pool all the lunch money and invest it with Computershare or Can Stock Transfer Agent.
  • I use my VISA Cash Back as an annual dividend and invest it.

What are your actions to go above and beyond? Anything creative?

As for my October dividend income, I earned a GREAT $609.69. Another $600.00 month!!! Unless I make any major rebalancing, I should see a couple of months in the $600 and one month in the low $400 per quarter. In the end, it’s all a factor of how much money you have invested so don’t lose sight of saving!

My ROR adjust itself all automatically now that I am setup. I really like the ROR as it’s really my benchmark on performance. If I plan my portfolio growth over the years, I would be happy with 10%. Anything above that is great. Anything below and I need to understand if it’s a result of the type of holdings as opposed to a performance issue.

  • TFSA – 16.91% (up from 15.76%)
  • RRSP – 18.14% (last month 18.19%)
  • RESP – 1.10% (up from 0.16%)
  • RBC Non-Registered – 4.75% (up form 3.21%)
  • Computershare – 11.46% (up from 8.43%)
  • Can Stock – 11.76% (up from 8.26%)

As you can see, the ROR fluctuates like the markets since it’s tied to the market value. However, since all my dividends are re-invested and kept in the accounts, it continuously adds to the return and provides an increase that can be offset by the markets.

Related: How To Rebalance Your Stock Portfolio

I am not currently planning to add any more stocks to my stable at the moment. I am focusing on building up in the sectors I am currently in. The red bar represents my current holdings while green represents my target. No bonds? That’s right. I find it so hard to put money in bonds when I can earn so much more elsewhere. My entire portfolio is also 40% dividends and 60% indexed with my defined contribution plan. On the other side of my investment plan, there are bonds to soften the blow … Bonds have a place in your portfolio but you need to decide how much. I recently questioned the old saying of holding your age in bonds, I don’t think this bonds allocation is adequate in the current interest are.

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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