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. 🙂
In May, we received dividend income from the following companies:
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)
RioCan REIT (REI.UN)
Royal Bank (RY.TO)
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.
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.
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?