Dividend Income – May 2016 Update

It’s that time of the month where I post my favourite topic – monthly dividend income update! For those of you that are new to this site, each month I provide an update on our dividend income and our dividend growth. We love dividend income because it’s money that we receive for doing absolutely nothing at all. Gotta love getting paid while changing Baby T2.0’s diaper. 🙂

The market has been pretty hot lately. Unfortunately this means that it’s harder and harder finding value dividend stocks. For now, we’re going to continue saving money and deploy cash to purchase dividend stocks when we can find a bargain or two. Given that we’ve purchased over $35,000 worth of dividend stocks so far this year, I think it is OK to slow down a bit on the purchasing front.

For this month’s dividend update, I’m providing slightly more data and different charts. Hopefully readers will appreciate these changes. 🙂

Dividend Income
In May, we received dividend income from the following companies:

Apple (AAPL)
Pure Industrial REIT (AAR.UN)
Bank of Montreal (BMO.TO)
Corus Entertainment (CJR.B)
Dream Office REIT (D.UN)
Dream Global REIT (DRG.UN)
General Mills (GIS)
H&R REIT (HR.UN)
Inter Pipeline (IPL.TO)
KEG Income Trust (KEG.UN)
Kinder Morgan (KMI)
National Bank (NA.TO)
Omega Healthcare (OHI)
Procter & Gamble (PG)
Potash (POT.TO)
RioCan REIT (REI.UN)
Royal Bank (RY.TO)
Starbucks (SBUX)
AT&T (T)
Verizon (VZ)

In May 2016, we received a total of $1,014.84 in dividend income from 20 companies. Of the $1,014.84 received, $268.07 was in US dollar and $746.77 was in Canadian dollar. If the likes of Kinder Morgan, Potash, and Dream Office REIT didn’t cut their dividend payouts, our May dividend income would have been higher. The dividend cuts reduced our dividend income by almost $80. Ouch! 🙁

The top 5 payouts came from Royal Bank, National Bank, Bank of Montreal, Omega Healthcare, and Procter & Gamble, which corresponds to about 64% of our total dividend income. We feel OK with this high percentage given that Royal Bank and Bank of Montreal have been paying dividends since the 1800’s and Protector & Gamble, Omega Healthcare and National Bank have 44, 14, and 6 years of dividend increase streaks respectively.

Please note, we use a 1 to 1 currency rate approach, so we do not convert the dividends received in US dollar into Canadian currency. Reason for doing this is to keep the math simple and avoid fluctuations in dividend income over time due to changes in the exchange rate.

tawcan-dividend-income-may-2016

Dividend Growth
Compared to May 2015, we saw a YOY growth of 20.2%. A very reputable YOY percentage if you were to ask me. The chart below gives a good overview of our monthly dividend earned on a year over year basis since 2011. It’s definitely nice to see the bars getting longer and longer. 🙂

If you are wondering, our dividend growth is contributed by three things – investing fresh capital, purchasing of additional shares through dividend reinvesting plan (DRIP), and increasing of individual stock’s organic dividend payout each year. We believe in utilizing the power of all of these three components to grow our dividend income exponentially.

Thanks to DRIP, we were able to purchase additional 10 shares of various dividend paying stocks, which in term increased our forward looking dividend by $19.92. I think this is pretty significant because given a 3% yield, that meant we didn’t have to invest $664. When we do save $664, we can invest this money to generate additional $19.92 at 3% yield. Pretty cool stuff if you think about it.

The graph also demonstrated that it has taken us a few years to build up our dividend income. Rome wasn’t built in one day, neither should your dividend income.

 

dividend income May 2016

Moving forward
So far in 2016 we’ve received a total of $4,857.65 in dividend income, that’s 37% of our $13,000 annual dividend goal. Pretty solid but it paints the picture that we’re slightly behind in progress (we should be around 41.7%). However, given that we have received over $1,000 three out of five months and have received over $1,000 in dividends for two straight months, I’m extremely happy with our progress. Hopefully we’ll continue this $1k streak in June.

Dear readers, how was your May dividend income?

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47 Comments

  • Reply
    Stefan Sharpe
    June 6, 2016 at 9:36 am

    Another solid month for you! Even with the dividend cuts you were still able to increase YoY by roughly 20%! Not to mention 2 months back to back of $1,000 in dividends must feel pretty awesome. Unless you added June dividend payers it looks like it may be tough to break that $1,000 mark based on your history but I hope you can. Best of luck.

    • Reply
      Tawcan
      June 6, 2016 at 10:33 am

      Hi Stefan,

      Thanks. I guess we’ll see if we can break that $1K mark again in June. 🙂

  • Reply
    ambertreeleaves
    June 6, 2016 at 9:40 am

    You might be slightly behind the goal, the progress and numbers are quite impressive! 2 months in a row with more than 1K dividend… Well done. Your snowball gets momentum!

    • Reply
      Tawcan
      June 6, 2016 at 10:33 am

      Thanks ambertreeleaves.

  • Reply
    Roadmap2Retire
    June 6, 2016 at 9:48 am

    Congrats on another great month, Tawcan. Keep up the great work and thanks for sharing

    R2R

  • Reply
    desidividend
    June 6, 2016 at 9:57 am

    Nice streak,maybe it will touch 2000 soon.

    • Reply
      Tawcan
      June 6, 2016 at 10:35 am

      Thanks need a bit more work before reaching $2K. 😀

  • Reply
    Mr.Tako @ Mr. Tako Escapes
    June 6, 2016 at 10:58 am

    Nice dividend income. You surpassed me for a change! I’ll catch up next month though 😉

    • Reply
      Tawcan
      June 6, 2016 at 3:45 pm

      Wow I surprised you Mr. Tako? Holy molly. I’m sure you’ll overpower me next month. 🙂

  • Reply
    Apathy Ends
    June 6, 2016 at 10:59 am

    The progress is awesome YOY and I love your DRIP approach!

    • Reply
      Tawcan
      June 6, 2016 at 3:45 pm

      Thanks Apathy Ends. DRIP is a very effective to compound your dividends.

  • Reply
    lesgraphiquesdesunfire
    June 6, 2016 at 3:17 pm

    Je suis content pour vous Tawcan ……. 3 mois sur 5 que vous en haut du $1000.00 ….Good

  • Reply
    Dividend Diplomats
    June 6, 2016 at 4:20 pm

    Tawcan,

    DAYUM! Loving this, killing it, 3 months of $1K + and you are about to make it a total of 4, with 3 in a row. Nice job and don’t sweat the high allocation to a few of the companies, as long as it wasn’t just 1 with 64% coverage! Amazing job and am so pumped for your June. Keep at it!

    -Lanny

    • Reply
      Tawcan
      June 7, 2016 at 10:07 am

      Hi Lanny,

      We’ll have to wait and see whether we can make it 3 in a row or not. 🙂

  • Reply
    The Personal Economist
    June 6, 2016 at 5:07 pm

    Great month and very impressive YOY rates. Love the picture 🙂
    We focus on investment property income which rolled in again this month with no effort on our part – its ‘magic’ isn’t it!

    • Reply
      Tawcan
      June 7, 2016 at 10:07 am

      It’s definitely magical to see income rolling in without having to do anything.

  • Reply
    Dividend Life
    June 6, 2016 at 8:21 pm

    Hi Tawcan,

    Congrats on a fantastic month! Gotta love a 20% increase in income YOY 🙂 It’s interesting that your June numbers are a little lower than the others on average; usually June is one of the higher months.
    Best wishes,
    -DL

    • Reply
      Tawcan
      June 7, 2016 at 10:08 am

      Hi Dividend Life,

      Our June dividend income would have been much higher if a few of the companies didn’t cut their dividend payouts earlier this year/late last year.

  • Reply
    MrSLM
    June 6, 2016 at 8:34 pm

    Wow solid month! Looks like you’re well on your way to consistently getting over $1000/month.

    • Reply
      Tawcan
      June 7, 2016 at 10:09 am

      Thanks Mr. SLM. Hopefully we’ll be consistently getting over $1500 soon.

  • Reply
    DivHut
    June 7, 2016 at 12:17 am

    Awesome results as always. You put up some solid numbers with a very respectable year over year increase despite some nasty cuts. Cuts are part of this game we play. Just stay diversified and these cuts will have minimal impacts. Again, happy to see some great Canadian banks paying you as well. Keep up the good work. Now it’s time for me to change a diaper too!

    • Reply
      Tawcan
      June 7, 2016 at 10:09 am

      Yeah sucks to see these cuts but luckily these stocks make a small portion of our dividend portfolio.

  • Reply
    Dividendsdownunder
    June 7, 2016 at 4:19 pm

    Hey Tawcan, looks like an awesome month to me, another one over $1,000! This time next year, every single month might be $1K+, that’d be enough to live decently in a lot of countries around the world. Good luck for next month 🙂

    Tristan

    • Reply
      Tawcan
      June 8, 2016 at 2:03 pm

      Thanks Tristan. The dividend income is getting more substantial for sure.

  • Reply
    NRG
    June 7, 2016 at 8:11 pm

    Income received this month was just over $3000 . Last years income was $2400 for a 20% increase. Love those dividends and income trusts. Got rid of any company that cut their dividends and re-invested in dividend growth stocks.

    • Reply
      Tawcan
      June 8, 2016 at 2:03 pm

      Amazing amount of dividend income NRG!

  • Reply
    Team CF
    June 8, 2016 at 5:01 am

    The winning streak continues, that 2011-2016 graphs shows it all. Impressive that you were able to deploy $35K this year in new investments, amazing!

    • Reply
      Tawcan
      June 8, 2016 at 2:03 pm

      Thanks Team CF. Working hard on saving money so we can invest. 🙂

  • Reply
    Financial Slacker
    June 8, 2016 at 3:24 pm

    Congratulations on a good month.

    I have to agree about the hot market. I have been liquidating a number of high-priced mutual funds but haven’t been able to get the money reinvested (into ETFs and dividend stocks) as I hate buying in when the market has been up so much over the past few weeks.

    • Reply
      Tawcan
      June 10, 2016 at 9:46 am

      Thanks Financial Slacker. It’s definitely harder and harder finding an attractive stock to purchase.

  • Reply
    IH
    June 8, 2016 at 10:36 pm

    WOW. You’re killing it Tawcan!. Keep on pushing.

  • Reply
    Pon
    June 9, 2016 at 3:31 pm

    Great work and your Blog is Awesome! Your blog, along with other blogs inspired me to fight towards financial freedom. 1880 days left to go for me.

  • Reply
    Chris
    June 10, 2016 at 9:35 pm

    A cool grand would be more than enough for a single person to live off of in the right situation. That’s pretty impressive that you didn’t have to lift a finger to get it.

    • Reply
      Tawcan
      June 13, 2016 at 11:11 am

      Thanks Chris, it’s amazing to receive money for doing nothing at all.

  • Reply
    easydividend
    June 11, 2016 at 1:02 am

    another month with over 1000 dollar in dividends. congrats!
    You are on track! Dividend Increases and a little new capital will smash you yearly goal 🙂

    if you are able, keep on buying those assets. awesome work here.

    best regards

    • Reply
      Tawcan
      June 13, 2016 at 11:11 am

      Thanks easydividend. 🙂

  • Reply
    Mrs.Moneypenny
    June 11, 2016 at 2:09 am

    Hi Tawcan,

    Seems like a solid month. I’m sure you will crush that 13k goal!

    Kisses,
    Mrs. Moneypenny

    • Reply
      Tawcan
      June 13, 2016 at 11:12 am

      We’re working hard to accomplish the 13k goal.

  • Reply
    May Dividend Income from YOU the Bloggers! - Dividend Diplomats
    June 11, 2016 at 5:31 am

    […] Tawcan – $1,014.84 – WHOA!  CONGRATULATIONS!  The Illustrious 4 digit mark… crossed.  Done and DONE.  This was Tawcan’s 2nd month in a row of 4 digit plus dividend income and 3rd on the year.  So incredible.  Nice job. […]

  • Reply
    mr MB
    June 13, 2016 at 5:09 pm

    Those are freaking awesome and inspiring numbers – hope to reach them eventually… 😀

  • Reply
    cannew
    June 14, 2016 at 12:30 pm

    “The top 5 payouts ….which corresponds to about 64% of our total dividend income.”

    Concentrate on great Income producers and the results will be the slow and steady growth!

    Keep up the good work.

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