I received over $340 dividend income from 25 different income sources in February 2017.
This is my second dividend income report for the year of 2017. Long-term readers know that I receive less dividend income in February, May, August and in November, and higher dividend in March, June, September and December.
$340 is look very small amount for some of you, but it is really big gift for many, especially people like me.
Even though it is a small amount when I compare with other month, it could cover my utilities cost, internet and cellphone bills.
So, it is not a small amount to ignore. And, it is growing year-over-year with new assets purchases and dividend hike announcements from the companies I own.
The income is pure passive, well diversified and very secured than a day job income.
As I always say, if your are depending from one income source – your day job, then you better start thinking about create few other income streams to secure your financial future.
Let’s say a person ABC working in a company called XYZ, and in an event that the company XYZ runs into serious financial problems the first thing it looks for to cut expenses (workforce) instead of dividend for its true owners.
When you own multiple companies like XYZ, then you could survey easily even if XYZ cuts its dividend.
This is the reason I always encourage all this blog readers to consider creating more income streams instead of relying on one source.
Diversifying your income will help you to go secure your financial future from unexpected events.
It doesn’t mean I encourage you to start investing in dividend paying stocks. There are so many ways to diversify your income streams. Find your passion and start think about how you can succeed in your life.
I hope you get some value out of this post.
Now let’s look at my dividend income in numbers.
I received $341.75 dividend income in February, and it is 17.27% higher than February 2016 which as $291.42.
Summing up all the dividends I received in 2017, I came up with $903.90 One of my short-term goals is to receive at least $8000 dividend income during the year of 2017. So far, I’ve achieved 11.30% of the goal.
Dividend income from Canadian stocks
- PWF – $29.44
- ZPR – $2.10
- REI.UN – $11.75
- FC – $7.80
- IPL – $6.75
- EMA – $26.13
- DRG.UN – $3.33
- CAR.UN – $3.12
- RY – $66.40
- CGX – $4.73
- BMO – $44.00
- XRE – $9.80
- CPD – $5.12
- MRG.UN – $5.33
- BEI.UN – $18.75
- ALA – $17.68
Dividend income from U.S stocks
- VZ – $8.66
- PG – $16.74
- KMI – $6.25
- GIS – $7.20
- CL – $1.95
- T – $18.13
- OHI – $12.40
- HCP – $5.69
- SBX – $2.50
Total: $341.75
Total dividend I received for year 2017: $903.90
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 $7416, increased by $269.
One of my long-term goals is receive $25000 dividend income from investment portfolios. I have achieved 29.66% 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 to achieve your financial goals much earlier than you think.
Thank you so much for your great support, encouragement, and being in my financial journey.
Hi, I was wondering about what I should be putting in my TSFA, cause I heard it’s not good to have us stocks in it, but is there ETFs that I should be putting in it over mutual or should I just have canadian stocks in TSFA and us stock in rsp or non registered?
Hello Jesse,
Thank you for stopping by,
First I would like to disclose that I am not a professional advisor or tax expert.
For my knowledge, you would need to pay 15% as withhold-taxt for US stocks dividend income inside your TFSA, and there is no capital gain. For Canadian stocks, you don’t need to pay any tax for dividend income and capital gain. Same treatment applies for U.K stocks inside the TFSA (very tiny charge will be applied in U.K stocks). For other countries, there will be withhold tax for dividend incomes, but varies depend on the countries’ financial policy.
There are no taxes dividend and capital for U.S and U.K stocks inside RRSP accounts (as of today), this may change depend on financial policy changes between Canada and other two counties..
Is there any ETFS? –To be honest, I don’t recommend any investment advises. I am still learning about investment. I would strongly recommend you to do your own research and/or discuss with a qualified financial advisor before make any financial decision.
You may consider start reading good investment books & websites and educate yourself. So, you could control your financial movements.
Best Regards,
About a year ago I allocated about 50% of my portfolio to invest in dividend stocks (the remaining 50% is in broad index ETFs). I really like seeing the increases in dividend income year over year. Watching someone else succeed using the same strategy is a great way to stay motivated.
I have a couple of questions I was hoping you could answer:
I was wondering if you take advantage of stocks that offer DRIP discounts, or if you always take your dividends in cash?
How do you find new blue chip dividend stocks to invest in?
Thank you and keep up the great work
Hi Jason,
Actually, I don’t use DRIP. I collect dividend in cash and invest in one or more stocks at good value. DRIP is a also a great way to build wealth without paying trading commission.
How do I find new blue-chip stocks? I found most of the stocks by reading financial websites/blogs & investment related books, and do my own research by reading the company annual reports before consider adding them in my watch list. Then, I watch them very closely and buy when it come down to my target price.
I hope this helps, Please do your own research or discuss with a qualified financial advisor before make any financial decision.
Best Regards,
Nice work, I would love to receive that much per month =) I agree about different income streams. We are currently looking at different ways to get another semi passive income. Look forward to your March results. Those will be my Highest quarterly months too
Hello Passive Canadian Income,
Thank you for stopping by,
You will get there in the near future. If you look back my 2012 (not long ago) dividend income report, I received only $909 for entire year. Now, I am very close to receive that amount in a month.
Wish you all the best in your success!
Cheers,
It’s a pity that dividend incomes are ineligible for RRSP contributions. Anyway, I think that especially during the early years the focus should be more on dividends than on growth and that’s until getting all basic expenses covered by the dividends.
$25K/year from dividends is achievable from a portfolio of $300K, as it is not too hard to find companies that pay dividends between 8% and 10%, mainly REITs but not only. As the dividend income reaches $25K/year the focus should move from dividend growth to value growth. I think the first priority should be financial independence and you could reach a dividend income of $25K/year next year if you put your mind to it, long before you reach your $1M net worth goal.
Hello Alan,
Thank you for your suggestions,
People have different strategies and different goals. My goal is long-term focus with dividend growth.
I like high yield stocks, but they come with above average risk. I like to go with slow but steady growth. Once I hit my dividend around $12K/year, it could easily double pretty quickly with combination of dividend growth and re-investments.
What is your investment strategy?
Best Regards,
My strategy it to achieve financial independence as soon as possible and I have a net worth very close to yours.
Unfortunately I began investing seriously only in a relatively old age and haven’t been financially wise at all when I was in my 20’s. Being lower middle class like you and having about the same income as you do I try my best to save as much as I can and achieve financial independence before I’m 40 years old (I’m 37 years old now). Right now all of my portfolio is composed of relatively high dividend stocks and my dividend income is about $17K/year. Once I reach a dividend income of $25K/year I will focus more on value growth rather than dividend growth and change my portfolio gradually without lowering my annual dividends.
I have a long term goal to reach a net worth of $2.5M by the time I’m 55 years old and a passive income that would be higher than my highest active income until then.
I always re-invest my dividends but not necessarily in the stocks that distributed them, I try to balance my portfolio as much as I can without selling, I try to hold my stocks as long as I can and I follow Warren Buffet’s rule not to buy stocks that I don’t see myself hold for 10 years at least and some of my investments I hope to hold for much longer than that.
Hello Alan,
Thank you so much for sharing your investment strategy 🙂 You have a great strategy too.
It is never too late to start thinking about financial independence, and You are already very close to reach to $25K/year dividend income. If you don’t mind, could share some of the high yield stocks you own in your portfolio?
I hope you already know about the risks in high yield stocks, but watch them out very closely with their payout ratio (dividend sustainability).
Regarding balancing, I follow your strategy too – balancing portfolio without selling stocks.
Thank you once again for sharing your insides.
Best Regards,
I hold the following Canadian high dividend stocks:
Dream Global Real Estate Investment Trust – DRG.UN
Corus Entertainment Inc. Class B – CJR.B
Cominar Real Estate Investment Trust – CUF.UN
Centamin plc Ordinary Shares – CEE
Timbercreek Financial Corp. – TMC
American Hotel Income Properties REIT LP – HOT.UN
Canoe EIT Income Fund – EIT.UN
As you can easily see, all the stocks above don’t do well in terms of value growth and most of them lost value during 2016, but since my goal is to achieve financial independence as soon as possible (meaning being able to live off of my passive income alone if I get to a situation in which I would really have to) I have sacrificed value growth for the highest sustainable dividends I could possibly achieve.
I also hold other stocks that distribute much lower dividends for the sake of some value growth and once I reach the goal of $25K/year from dividends alone I will purchase mainly high value growth stocks (but still, only stocks that distribute dividends).
When I reach the goal of having a net worth of $2.5M I will retire and only live off of my dividend income. My main motivation in it is that I would be free to travel as much as I want then, not having to work anymore, since travelling is my favorite activity.
Hello Alan,
Thank you for sharing your investment holdings with us 🙂
I have DRG.UN in my portfolio, and TMC is in my watch list. I prefer dividend growth stocks over high yields, but I buy them when everyone else selling for no reason.
Very glad to see that you have set very clear financial goals, but many people don’t even think about it until they reach their retirement age.
We love travelings too. We already did few short vacations (1 week) in the past couple of years, and paused now after we have a baby boy (he is 2 years old now).
Thank you once gain for sharing your ideas with us.
Best Regards,
(Please note for readers – Above information is not recommendation or investment advise. Please do your own research or discuss with a qualified financial advisor before make any financial decision)
For some of us that is a big amount. And something we strive to achieve. Good job keep it up
Hello Doug,
Thank you for stopping by,
I hope my March dividend income will be much higher than previous months. I can’t wait to post it 😀 …
Best Regards,