Can you believe that it is already May? Thanks to the warmer and dryer weather, Mrs. T, the kids, and I have been spending more time outside. This past Sunday we spent most of the day working in the yard, mowing the lawn, weeding the vegetable garden, and seeding more vegetables. As you can see from the picture above, things are growing nicely in our vegetable garden. We have a lot of strawberry plants and I can’t wait for strawberry harvest!
One of the things I have been debating lately is whether to continue DRIPing in our investment accounts. I often get the feeling that the market is near its peak. Does it make sense to continue DRIPing stocks like TD, Royal Bank, Enbridge, and Telus? Or is it better to stop DRIPing, lock in our Adjusted Cost Base (ACB), and use the cash to purchase other discounted stocks? It’s a tough question. 🙂
April Dividend Income
In April 2017 we received dividend income from 25 companies:
- Pure Industrial REIT (AAR.UN)
- Agrium (AGU.TO)
- BCE Inc (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)
- 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)
- Vanguard All-World Ex-Canada (VXC)
- Wal-Mart (WMT)
In total we received $1,212.18 in dividend income.
Woohoo! We have achieved a major milestone! This marked the first time that we received over $1,200 in monthly dividend income. We have been very close in February and March, so it was great to finally reach this milestone. Look out $1,300, we are coming for you!
Out of the $1,212.18 dividend income that we received in April, $164.11 was in USD and $1,048.07 was in CAD. 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 April 2017 were TD, BCE, Bank of Nova Scotia, Coca-Cola, and CIBC. The top 5 payouts accounted for 50.2% of our April dividend income.
Compared to April 2016 we saw a YOY growth of 17.26%. It was the lowest YOY performance so far in 2017 but I was still pretty happy with this performance. We need to continue adding more dividend growth stocks to boost our dividend income.
In April a number of companies that we own in our dividend portfolio announced dividend increases:
- Johnson & Johnson raised dividend by 5% to $0.84 per share
- Omega Healthcare raised dividend by 1.61% to $0.63 per share
- Procter & Gamble raised dividend by 3% to $0.6896 per share
- Unilever plc raised its dividend by 12% to €0.3585 per share
If we ignore the Unilever dividend raise (because it is tough to figure out the exact impact due to exchange rate), the other raises have increased our annual dividend income by $21.93.
Dividend Stock Purchases
I was very happy to see some volatility in April. I took advantage of the volatility and made a few purchases.
- 14 shares of Canadian Imperial Bank of Commerce (CM.TO)
- 100 shares of Enbridge Income Fund (ENF.TO)
- 46 shares of Metro Inc (MRU.TO)
These purchases added $251.22 toward our annual dividend income.
Due to the poor CAD to USD exchange rate, we plan to avoid converting CAD into USD in the short term. Hence, we will be focusing mostly in the Canadian stock market.
April dividend income was excellent. It felt so nice to finally reach the $1,200 per month milestone. Although the market appears to be near its peak, we plan to continue executing our investing strategy. There’s no change in course for us.
So far in 2017 we have received a total of $4,688.02 in dividend income. This comes to an average of $1,172 per month for the first four months of 2017. At an hourly wage of $40, this means we have saved ourselves over 29 working hours each month. Or almost 4 working days each month. This is a perfect example of having our money work hard for us so we don’t have to.
Dear readers, how was your April dividend income?