Most of my big holdings have been posting record high revenues and also hiking their dividend payments since the beginning of the year, but the market didn’t appreciate the good news, and is keep moving in the opposite direction because the solo reason of rising bond yields.
Market reaction is actually a bad news when I look from my net-worth point of view. My portfolio is down between 6% -8% from its mid-December high. In other word, my portfolio value dropped between $12000 and $15000 in 3 months and most of the declines happened in February.
I am still in accumulating phase; still it is hard to watch when my portfolio value drop thousands of dollars in single day. It is really big money when I compare to my salary with my day-job; in a worst time my portfolio dropped more than my monthly income in few house. But, I am confident the setback in shares price is temporary and it will get recovered sooner.
Meantime, my portfolio income continues to grow regardless of market performance, thanks to recent dividend hikes and new assets purchases. I expect to see more dividend increases in the coming days, weeks and months, and my income continues to grow month over month and year over year.
Free fall market doesn’t discriminate between good and bad stocks and it pulls everything down to earth and creates buying opportunities for those who are looking for deals. I have been hunting some deals using new capital and the money that built up in my portfolio, and continue adding assets at lower cost.
In January, my portfolios generated over $700 dividend income. I received this pure passive income from 37 different income sources.
All I did was work hard, save some money and invest in high quality companies that reward their owners – aka shareholders with generous dividend. I let the money build up in my accounts and reinvest when my favourite stocks go on sale.
I understand the power of compounding; it is one of the key ways to build wealth for long-term.
Now let’s back to fun part of numbers.
I received $713.72 dividend income in January 2018, and it is 26.96% higher than the income I received January 2017, which was $562.15.
Dividend income from Canadian stocks
- FC – $14.80
- CGX – $2.80
- XRE – $10.20
- CPD – $5.10
- NWH.UN – $3.33
- NVU.UN – $9.51
- DRG.UN – $3.33
- CAR.UN – $3.20
- VGG – $1.97
- REI.UN – $11.75
- ZPR – $2.05
- ZDH – $1.80
- MRG.UN – $5.50
- KPT – $18.00
- BEI.UN – $23.44
- CGX – $9.80
- T – $50.50
- ALA – $26.25
- BCE – $96.86
- IPL – $7.00
- VNR – $29.00
- BNS – $79.00
- CM – $32.50
- TD – $90.00
- TRP – $93.76
- AQN – $36.72
Dividend income from Small-cap Growth portfolio
- DIV – $1.48
- GDS – $1.13
- TCS – $1.25
- URB – $5.00
Dividend income from U.S stocks
- CSCO – $4.35
- DIS – $8.40
- PEP – $8.05
- DPS – $6.96
- WMT – $5.10
- MCK – $1.70
- O – $2.13
Total: $713.72
Total dividend I received for year 2018: $713.72
Estimated passive income
For those new to this site, the Estimated passive income is the income I estimated to receive in a year based on my current investments holding and their distribution rate.
My Estimated passive income is currently at $8634.
One of my long-term goals is receive $25000 dividend income from investment portfolios. I have achieved 34.54% of my goal.
I am very happy with my results and achievements so far. I hope I am moving in the right direction toward my long term financial goals.
Learn about finance, live within your mean, save and invest in high quality assets will help you reach your financial goals much earlier than you think.
Thank you so much for your great support, encouragement, and being in my financial journey.
Hello Sean,
I wanted to ask how you analyze the Blue Chip stocks that you have picked above. In terms of a stable long-term growth.
Thanks
FJ,
Great website! I invest in many of the same stocks as you, with very similar goals. Coincidentally we have a very similar net worth as well. I am however trying to learn more about using these low interest credit cards to borrow to invest. I don’t borrow to invest right now, but want to be prepared to borrow at low interest rates if/when we have a significant market correction. Is it as simple as ordering the card and then just making a cash advance to make the funds available to you? Is there no significant fee for a cash advance? And do you simply stop using the credit card once the low interest period ends? I am seeing several credit cards currently offering 1.9% interest for 10 months.
Any advice would be much appreciated,
Sean
Hello Sean,
Thank you for stopping by, so glad to see someone with similar goals 🙂
Regarding low interest card – I usually receive these low rate offers from my credit cards that I already have. I didn’t apply for any new card since 2014. When you apply for a new card, then wait for the card to arrive and call the card company to transfer the fund. You will get the cash within 2 to 5 business days. Please note your credit score will be negatively affect when you apply for new cards or when you do fund transfer. Also, please ensure to pay the minimum payment (at least) every single month to maintain the low rate.
Sometimes I can do the balance transfer using their online platform, and sometime I have to call them to transfer. If you want to transfer money to your checking accounts, then better to call them and get more details about the transfer-fee and other related information. Usually they charge 1% balance transfer fee, sometimes more than 1%. When you call, you could negotiate and get better deals. It is depend on who is answering your call.
I usually receive new low rate offer from the same cards once the low interest periods about to end. So, I can keep rotating the money without applying for a new card.
Please do understand that leverage investing is extremely risky. Do you own research or discuss with a qualified financial advisor before make any financial decisions.
Best Regards
Absolutely it’s risky! Although not so uncommon when you consider how many people borrow through mortgages to invest in a home (or two or three). To mitigate the risk, I plan to only “borrow to invest” if/when there is a big stock market correction, say greater than 30%. Also I would only “borrow to invest” in the largest most stable companies.. who’s dividends have remained steady (both past corrections and present).
So in terms of the credit cards, I should expect a transfer fee of 1% plus and annual interest rate of 1.9%… that’s it? effectively 2.9% is what you are paying in interest?
Also, how much will these cards typically allow you borrow per card?
Hello Sean,
Well said about risky. I have a same mindset as yours 🙂 I also borrow money to invest when I see a solid dividend paying company trading at discounted price. I have been using this strategy for last 5 years, and it works well for me.
Regarding credit cards – when you receive an offer, they will tell you about the transfer or call the bank and check out the fee. Mostly I get 1%. Total cost I pay is 1% + interest rate of 0.99% – 1.99% (depend on offer you get).
I only use no annual fee cards. If your cards have annual fees, then you will need to pay for it as well. Also, I don’t take “balance production plan insurance”. It will eat your return in a big way. If I borrow money in a card at low interest rate, I stop using the card until it get paid-off, otherwise, we need to pay regular 20% interest for the purchases we make.
Re limit – Lets say your card limit is $10 000 and transfer fee is 1%, then you can transfer up to $9900 to your checking accounts. But I leave some rooms for errors. I borrow around $9500.
If you are applying for a new card, please ensure your bank allows to transfer money to your checking accounts. Some banks only allow to transfer to another credit card only. Royalbank and MBNA allow to transfer balance to our checking accounts. Please check it out.
Hope this helps 🙂
Best regards,
Congrats mate! Solid increase in dividends. The list of stocks paying you dividends is awesome too. Your journey is looking good.
Thank you Dividend Greek,
I hope you have a great month as well 🙂
Best Regards