Dividend Income – July 2017 Update

Wow where did July go? Between having fun at work, looking running after the kids, tending the garden & yard, and enjoying the summer, July just slipped by. Baby T2.0 is waking up screaming a bit less at night nowadays so Mrs. T and I are finally getting slightly better sleep. Hopefully soon we will be able to get 7 or so hours of continuous sleep.

In terms of our garden & yard, plants are growing nicely. We completed this year’s strawberry harvest and trimmed down the strawberry plants. We have also started harvesting tomatoes and garlic. Home-grown tomatoes taste so much better than store-bought ones. They are packed with flavours.

Pumpkin!

Pretty sunflowers

We trimmed down the strawberry plants

Plants are overgrown in the greenhouse.

Tomatoes!

Garlic! Our house is a vampire free zone. :p

A few weeks ago I asked readers to fill out a survey. It has been interesting reading all the responses. Thank you very much for those of you that have taken the time to fill out the survey. If you haven’t filled out the survey, please do so, I would really appreciate that.

 

July Dividend Income

In July 2017 we received dividend income from 24 companies:

  • Pure Industrial REIT (AAR.UN)
  • Agrium (AGU.TO)
  • BCE (BCE.TO)
  • Bank of Nova Scotia (BNS.TO)
  • Corus Entertainment (CJR.B)
  • CIBC (CM.TO)
  • Canadian Natural Resources (CNQ.TO)
  • Dream Office REIT (D.UN)
  • Dream Global REIT (DRG.UN)
  • Dream Industrial REIT (DIR.UN)
  • Enbridge Income Trust (ENF.TO)
  • General Electric (GE)
  • H&R REIT (HR.UN)
  • Inter Pipeline (IPL.TO)
  • KEG Income Trust (KEG.UN)
  • Coca-Cola (KO)
  • Prairiesky Royalty (PSK.TO)
  • Rogers (RCI.B)
  • RioCan REIT (REI.UN)
  • Smart REIT (SRU.UN)
  • Telus (T.TO)
  • TD (TD.TO)
  • TransCanada Corp (TRP.TO)
  • Domtar Corp (UFS.TO)

In total we received $1,282.42 in dividend income.

We have yet another all-time monthly dividend income record. Woohoo! It’s pretty neat that we have been breaking the all-time monthly dividend income record regularly in 2017.

Out of the $1,282.42 dividend income that we received in July, $138.61 was in USD and $1,143.81 was in CAD. July was definitely a month that was CAD heavy. Please note, we use a 1 to 1 currency rate approach. Therefore, we do not convert dividends received in USD to CAD. We are ignoring exchange rate to keep the math simple. This is our way to avoid fluctuations in dividend income over time due to changes in the exchange rate.

The top 5 dividend payouts in July 2017 were CIBC, BCE, Coca-Cola, Telus, and TD. The top 5 payouts accounted for 46.44% of our July dividend income.

 

Dividend Income Breakdown

We hold our dividend stocks in taxable accounts, RRSPs, and TFSAs. Every year, we maximize tax-advantage accounts first before investing in taxable accounts.

Some of you have been asking about our monthly dividend income breakdown across the different accounts. A good request and definitely worthwhile to take a closer look. What’s our breakdown?

  • Taxable: $277.44 or 21.65%
  • RRSPs: $371.06 or 28.93%
  • TFSAs: $633.92. or 49.43%

As you can see, most of the July dividend income was deposited in either RRSPs or TFSAs. Therefore, $1,004.98 from July was completely tax-free. This is by design and shouldn’t come as a surprise. All the dividend income received in taxable accounts are considered as eligible dividends. We only invest in non-Canadian dividend stocks in our RRSPs to avoid the 15% withholding tax.

 

Dividend Growth

Compared to July 2016, we saw a YOY growth of 20.19%. To be honest, I was very surprised to see a YOY growth number higher than 20%. Can we end the year at a number that’s above 20% YOY growth? I suppose we will have to wait and see.

 

Dividend Increases

July was a quiet month when it comes to dividend increases. Only one company in our portfolio announced dividend increase:

  • Omega Healthcare raised its dividend by 1.59% to $0.64 per share

Hopefully in August we will see more dividend increase announcements.

 

Dividend Stock Transactions

In July we saw a few days of volatility and the market was down significantly. Using this opportunity we added a few more IPL shares.

  • Purchased 118 shares of IPL

This purchase increased our annual dividend income by $191.16.

 

Summary

Thanks to 24 pay cheques, we had yet another monthly dividend record in July. It’s amazing to see that our money is working hard for us so we don’t have to.

So far in 2017 we have received a total of $8,439.18 in dividend income. This means we have already surpassed the annual dividend income that we received in 2014. It’s pretty amazing how much progress we have made in 3 years’ time. I am very thankful for this amazing progress.

Dear readers, how was your July dividend income?

 

 

 

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47 Comments

  • Reply
    R
    August 8, 2017 at 8:16 am

    I admire your growing dividend chart. You’re a huge inspiration to me and my family.

    Keep up the great work, sir!

    • Reply
      Tawcan
      August 9, 2017 at 8:15 pm

      Thank you R. Appreciate your kind words.

  • Reply
    Doug
    August 8, 2017 at 8:51 am

    Good Job. 24 companies is awesome and you are solidly over 1000 a month and growing. Keep it up.

    • Reply
      Tawcan
      August 9, 2017 at 8:15 pm

      Thanks, more like $1,100 every month now. Woohoo!

  • Reply
    MInh Vo
    August 8, 2017 at 9:21 am

    Congratulations.

    How much money you have to generate your monthly income. This is a good example and inspiration for me.
    Thank you.

  • Reply
    Ms. Frugal Asian Finance
    August 8, 2017 at 10:28 am

    I love your garden. It looks so pretty and productive, especially in the sun! I can’t believe August is half way gone *crying* I feel like I haven’t done much this summer. Where did my time go? *crying again*

    • Reply
      Tawcan
      August 9, 2017 at 8:17 pm

      I know, I can’t believe that September is just around the corner!

  • Reply
    MrSLM
    August 8, 2017 at 12:12 pm

    Congrats on a great month! Looks like we were neck and neck this month!

    Awesome garden too. We’re trying to grow garlic this year, first time, will let you know how it goes.

    • Reply
      Tawcan
      August 9, 2017 at 8:17 pm

      Thanks man, we have a long way to catch you for overall annual dividend income. 🙂

  • Reply
    Sarah De Diego
    August 8, 2017 at 1:09 pm

    Dear Bob,

    Those are great numbers and I am so jealous of your garden. We have been flooded this year in Ontario and the only thing that came up and survived was lettuce and dill. Good thing it isn’t 1925 or we wouldn’t survive the winter :).

    I still have great disparity in dividend income between the months, however, over the next year or two, I’m hoping to level things out so that I can have a regular and sufficient monthly income.

    Besos Sarah.

    • Reply
      Tawcan
      August 9, 2017 at 8:18 pm

      Flooding doesn’t sound like fun, hopefully the weather will work out better next year so you have more things in the garden.

  • Reply
    Ashley
    August 8, 2017 at 2:03 pm

    Can you comment on Dream Office REIT? The 1/3 reduction in dividend is troubling of course but I wonder whether it makes it a strong contender to keep as it’s getting its’ financial self in order. At 6% still for me it’ll still a darn good return.

    • Reply
      Tawcan
      August 9, 2017 at 8:54 pm

      Sucks that Dream Office reduced the dividend by 1/3. But it’s better than keeping unsustainable distribution. Having said that, this is the 3rd cut from Dream Office I believe, so maybe it’s time to trim the holding for us?

  • Reply
    Lazy Man and Money
    August 8, 2017 at 2:15 pm

    Wow, you got a lot more attractive in that first picture ;-). Were there numbers or charts I should be looking at ;-)?

    • Reply
      Tawcan
      August 9, 2017 at 8:54 pm

      Haha good one. :p

      • Reply
        Lazy Man and Money
        August 9, 2017 at 10:04 pm

        Thanks, I try to look for what other people could miss. And if it’s humorous, that’s a bonus!

        Or else, I’m just jealous that all plants have set up an international boycott against growing for me. 🙂

  • Reply
    DivHut
    August 8, 2017 at 2:20 pm

    Awesome job for July. Looks like your dividend income is very even throughout 2017. I have my ups and downs between my high months (end of quarter) and low months (start of quarters). I guess it’s all good as long as I can beat my previous year total. Keep up the good work with your dividend payers!

    • Reply
      Tawcan
      August 9, 2017 at 8:55 pm

      Thanks Keith. Somehow our dividend income stays pretty flat over each month. Not by design though.

  • Reply
    Mr. Tako
    August 8, 2017 at 10:15 pm

    Nice dividend income Bob! 20% YoY growth is pretty fantastic.

    Once you get up to where I am ($50k+ per year) it gets much harder to growth those dividends. I’m hoping for 10% growth this year.

    Nice garden too! That’s an impressive garlic crop!

    • Reply
      Tawcan
      August 9, 2017 at 9:02 pm

      Yup I’ve been talking about the decreasing YOY growth rate. It will come eventually but for now we’ll try to aim for 20%+ YOY growth rate.

  • Reply
    Dividend Cake
    August 8, 2017 at 11:24 pm

    Solid Steady 1k months ! Congrats ! I have beaten you in Dividend Income for July 2017. Glad I did this time ;-))
    I am quite happy about my income month. Congrats on the garden too. Looks great to harvest your own fruit and vegetables.

    • Reply
      Tawcan
      August 9, 2017 at 9:02 pm

      Congrats on beating us. 🙂 That’s awesome you’re getting your money working super hard for you too.

  • Reply
    wealth from thirty
    August 9, 2017 at 3:38 am

    Mmmm, another great dividend month, another great harvest in the garden too! From your chart it looks like you had a dividend paid every month of your first year but March? Did you invest pretty hard and fast in 2011 or manage that some other way?? Hope the rest of august is good to the Tawcan clan.

    • Reply
      Tawcan
      August 9, 2017 at 9:19 pm

      You’re right, we invested pretty hard and fast in 2011, hence for the fast growth since.

  • Reply
    American Dividend Dream
    August 9, 2017 at 4:24 am

    Outstanding results this year! To have over $1,000 per month coming in but still have a 20% growth rate is fantastic. If that rate kept up just a couple more years you are over $2,000 a month! Fun stuff to watch.

    Congrats

    ADD

    • Reply
      Tawcan
      August 9, 2017 at 9:19 pm

      Thanks, it’d be awesome to generate $2,000 a month in the near future.

  • Reply
    Dividend Income Stocks
    August 9, 2017 at 9:22 am

    Nicely done, Bod! 20% YoY growth and record dividend income! Congrats. You have a very nice garden. Time to harvest all your produce 🙂

    • Reply
      Tawcan
      August 9, 2017 at 9:28 pm

      Thanks Dividend Income Stocks, we are definitely harvesting all of our produce and enjoying the hard work we put in.

  • Reply
    Joe
    August 9, 2017 at 9:46 am

    You guys are doing so well with dividend. That’s the advantage of having a job and being able to add more money every month. Nice job! 🙂

    • Reply
      Tawcan
      August 9, 2017 at 9:29 pm

      Thanks Joe, having a job to have income each month to put toward the portfolio is great but what’s more important is having a high savings rate. 🙂

  • Reply
    Dan
    August 10, 2017 at 4:29 pm

    Awesome job Tawcan! You’re always crushing it and it was cool to see you surpass your 2014 total. July was a record month for me but I am still well behind my goal pace. We’ll see what happens. I think you’ll beat 20% YoY. Best of luck,

    Passive Income Dude

    • Reply
      Tawcan
      August 12, 2017 at 2:07 pm

      Thanks Dan. It’s very cool to see that we have surpassed our 2014 already. It’s pretty amazing what 3 years can do to your dividend income.

  • Reply
    Dividend Diplomats
    August 10, 2017 at 4:58 pm

    Tawcan –

    Three words. All. Time. Record. Nuff said.

    -Lanny

    • Reply
      Tawcan
      August 12, 2017 at 2:14 pm

      😀 Thanks Lanny.

  • Reply
    Investment Hunting
    August 10, 2017 at 10:06 pm

    Nice work Tawcan. Your dividend machine is running on all cylinders. Great YoY increase.

    • Reply
      Tawcan
      August 12, 2017 at 2:14 pm

      Thank you for the kind words. It’s nice to know that our dividend machine is running all cylinders.

  • Reply
    Palmetto Millennial
    August 12, 2017 at 6:33 pm

    Nice harvest! Both from the garden and the dividends look great. Keep up the great growth!

    • Reply
      Tawcan
      August 15, 2017 at 11:38 am

      Thank you sir!

  • Reply
    BSR
    August 13, 2017 at 9:15 am

    Sweeeeeeeeeeeeet dividend income. I changed my investing strategy to GARP investing lately but I am glad to see you are killing it with dividend growth investing! Great job!

    Cheers!

    BSR

    • Reply
      Tawcan
      August 15, 2017 at 11:38 am

      GARP is a good investing strategy too!

  • Reply
    Weekend Reading – Travel hacking, Simplii, when to sell, giveaways, and more #money stuff - My Own Advisor
    August 19, 2017 at 5:28 am

    […] Tawcan posted his July dividend income.  I think he’s smart to maximize his registered accounts first (e.g., TFSAs and RRSPs) before investing in a taxable account.  Once you’ve maxed out contributions to your registered accounts (including RESPs if you have kids…certainly no small feat!) you can consider taking advantage of the dividend tax credit with a taxable account.  […]

  • Reply
    RBull
    August 20, 2017 at 5:15 am

    Bob, fantastic progress on your investments. Nice looking garden. Both seem to be yielding very well indeed.

    From a retired boomer who is also harvesting investment dollars and garden vegetables, all the best.

    • Reply
      Tawcan
      August 21, 2017 at 10:03 am

      Thank you for your kind words RBull.

  • Reply
    Pia
    August 21, 2017 at 1:47 am

    Your garden fills me with such envy. I wished I could say my garden was booming – wait, it is. It’s booming with weeds.

    Your dividend income is also very inspiring. I’m just starting out on my investing journey, so fingers crossed will be able to have as good results to show in the future!

    • Reply
      Tawcan
      August 21, 2017 at 10:03 am

      Our garden has a bit of weeds too but we pull them out as much as we can. 🙂

  • Reply
    Happy Healthy and Wealthy Girl
    August 21, 2017 at 9:59 am

    you have a nice garden and great July dividend income!
    Thanks for sharing!

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