I received over $530 cash dividend last month from 18 different income sources.
I decided to invest 100% of this income to buy more dividend-paying stocks, so my income keeps growing month over month, quarter over quarter and year over year. I usually receive a slightly lower dividend in February, May, August and November. And a higher dividend for the rest of the months.
Therefore, I can expect a decent dividend income for the next two months, and I will be able to accelerate my financial freedom journey at a faster pace.
Besides, the majority of my holdings increase their dividend payments at least once a year. Thus, I will even receive more income as we advance.
In September, Fortis, Emera, NorthWest Company and a couple of U.S EFTs increased their dividend payments.
I am so glad to see the payment increments even in this challenging economic environment.
I anticipate that some companies, such as financial stocks and a few others, may temporarily pause their dividend hikes for the next couple of quarters. But I can expect them to start to increase them in later 2021.
I firmly believe that the health issue we are all facing now is temporary.
The stock markets crashed in March and recovered quickly within a few months; however, some sectors and stocks are still at their multi-year low.
Real-estate
Many analysts predict that we may experience slightly high inflation due to the central banks’ and governments’ policy actions.
I think the lower interest rate and massive government spending may increase the value of the assets.
Many investors think gold and real-estate prices may move higher.
I don’t invest in gold.
But, I am interested in real-estate. The home prices have been skyrocketing in Canada’s major cities. There are no signs of slow down.
However, most of the Real estate investment trust (REITs) have been trading at lower valuations than a year ago, especially in residential REITs.
I feel like there is a big disconnect between the public and private markets.
Either house prices are in bubble or REITs prices are undervalued. Honestly, I don’t know what will happen in the near future. But I believe real estate value goes higher over the long-run.
I don’t have enough capital to buy an individual condo or house. But, I can easily get participants in real-estate via REITs with a couple of hundred dollar investment. Thanks to ETFs. Even at Questrade, I can purchase the ETFs without paying any commission fees.
If you have a plan to open an account with Questrade, please accept my gift and take advantage of this $50 trade commission rebate.
There is a trading charge of $4.95 when you sell ETFs. All the details are at the time of writing. If you have a plan to open an account at Questrade, please check all the information (including current commission fees) on their website and see if it is suitable online brokerage for your needs.
I decided to increase my real-estate exposure using REITs and ETFs. Anyways, for proper diversification purpose, I will keep this sector under 20% of my portfolio value.
I will update my new purchases under my next portfolio update post.
Let’s discuss how much dividend I received in August 2020.
I received $531.10 dividend in August 2020, which is 6.77% increase from the dividend I received in August 2019.
Summing up all the dividends I received in 2020, I came up with $7242.44. One of my short-term goals is to receive at least $13000 dividend income during the year of 2020. So far, I achieved 55.71% of my target.
Dividend income from Canadian stocks
- NWH.UN – $3.33
- CHP.UN – $30.83
- MRG.UN – $5.83
- PLZ.UN – $14.00
- FC – $15.60
- FCR.UN – $14.33
- BMO – $15.90
- REI.UN – $48.00
- BEP.UN – $15.48 – (Special – split-adjusted)
- EMA – $61.26
- IPL – $2.00
- ALA – $12.00
- KEY – $32.00
- RY – $108.00
- BMO – $95.40
Dividend income from U.S stocks
- KMI – $17.33
- ZUD – $15.19
Total dividend I received from U.S stock holdings: $32.52
Dividend income from my International dividend portfolio
- ZDH – $24.62
Total dividend I received from International investments: $24.62
Total: $531.10
Total dividend I received for year 2020: $6711.34
Currency conversion rate : 1 USD = 1.32 CAD
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 $13821.
One of my long-term goals is receive $25000 dividend income from investment portfolios. I have achieved 55.28% of my goal.
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.
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Whats your strategy for reinvesting dividends? I’m about 6 months into dividend investing, and I use a questrade account but DRIPs are not possible for fractional shares so I’m wondering how you would go about reinvesting those dividends.
As a follow up as well, the reason I’m asking is to try and keep commission fees down as it can eat up a lot of funds when the Dividend reinvestment amounts aren’t very big.
Hello Jordan,
DRIP is an excellent strategy to build wealth; however, I prefer to collect cash dividend and invest in one or two stocks, which I find value at the purchase time.
As you said, commission fees eat a lot. So, you should let building up more cash (from dividend and saving) and invest. One good thing with Questrade is that you can buy ETFs without paying commission fees.
Depending on your financial goals and risk tolerance, you may consider buying ETFs at the early stage of your investment journey. In this way, you can diversify your portfolio and minimize risk.
I am not a financial professional or any sort of thing. I am just an ordinary guy on the internet and sharing my journey. Therefore, I would strongly recommend you discuss with a qualified financial advisor before making any financial decisions.
Best Regards,