Can you believe there are only 4 more months left for 2017 and fall is just around the corner? Often I wish I have more time on my hands so I can get more things done!
I spent the Labour Day long weekend pressure washing our patio and deck. Boy I sure got very messy and muddy. I ended up hosing myself down before entering the house. Although it was very messy, it was very satisfying to see a cleaner patio and deck. I might have to pressure washing again though since I missed a few spots here and there. Time to get dirty again!
FinCon is coming up in late October and I am looking forward to
stalking errr meeting many bloggers in person. Plutus Award is given out during FinCon. If you like this blog, I would really appreciate if you can nominate this blog for Best International Personal Finance Blog. Click here to nominate. Thank you!
Aug Dividend Income
In August 2017 we received dividend income from 27 companies:
- AbbView (ABV)
- Apple (AAPL)
- Pure Industrial REIT (AAR.UN)
- Bank of Montreal (BMO.TO)
- Care Capital Properties (CCP)
- Corus Entertainment
- Dream Office REIT (D.UN)
- Dream Global REIT (DRG.UN)
- Dream Industrial REIT (DIR.UN)
- Emera (EMA.TO)
- Enbridge Income Trust (ENF.TO)
- General Mills (GIS)
- H&R REIT (HR.UN)
- Inter Pipeline (IPL.TO)
- KEG Income Trust (KEG.UN)
- National Bank (NA.TO)
- Omega Healthcare (OHI)
- Procter & Gamble (PG)
- Potash (POT.TO)
- Prairiesky Royalty (PSK.TO)
- RioCan REIT (REI.UN)
- Royal Bank (RY.TO)
- Starbucks (SBUX)
- Smart REIT (SRU.UN)
- AT&T (T)
- Vodafone (VOD)
- Verizon (VZ)
In total we received $1,276.98 in dividend income. This is very close to the record dividend income of $1,282.42 that we received back in July 2018. And of course, very close to breaking the $1,300 milestone once again.
Hopefully before the end of 2017 we would break the $1,300 milestone.
Out of the $1,276.98 dividend income that we received in August, $381.73 was in USD and $895.25 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 August 2017 were Bank of Montreal, Royal Bank, National Bank, Vodafone, and Omega Healthcare. The top 5 payouts accounted for 58.3% of our August 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.
For August dividend income, the breakdown across the different accounts are:
- Taxable: $284.38 or 22.27%
- RRSPs: $629.41 or 49.29%
- TFSAs: $363.19 or 28.44%
Majority of the August dividend income was tax free (yea!) just as per planned. We try to be as tax efficient as possible by investing REITs and income trusts in TFSA only and US dividend paying stocks in RRSPs only. We only invest in eligible Canadian dividend paying companies in taxable accounts.
Compared to August 2016, we saw a YOY growth of 14.51%. Not the best performance matrix but still pretty reputable considering we received over $1,100 in dividend income in August 2016.
In August a number of stocks that we own in our portfolio announced dividend increase:
- Saputo raised its dividend by 6.7% to $0.16 per share
- Royal Bank raised its dividend by 4.6% to $0.91 per share
- CIBC raised its dividend by 2.36% to $1.30 per share
- Bank of Nova Scotia raised its dividend by 3.95% to $0.79 per share
All these organic dividend growths have added $111.04 toward our annual dividend income.
To get the same increase in annual dividend income, at 3% dividend yield, we would have to invest over $3,700 of fresh capital. This is why organic dividend growth is so important.
Dividend Stock Transactions
In August we continued adding shares to stocks that we already own. We purchased
- 70 shares of Inter Pipeline (IPL.TO)
- 38 shares of High Liner Foods (HLF.TO)
In addition, we received 4 shares of Sabra Health Care (SBRA) from the Care Capital spinoff.
In total we increased our annual dividend income by $147.16
Thanks to 27 pay cheques, we received over $1,200 in dividend income in August 2017. This is pretty awesome for doing absolutely nothing and having our money working hard for us.
So far in 2017 we have received $9,716.16 in dividend income.
To give some quantitative perspective, at $40/hour wage ($83,200 annual), our dividend income has saved us over 242 working hours, or 30.3 days already. That’s over 6 weeks worth of work!!!
Our goal for 2017 is to receive over $15,000 in dividend income. At this point we are about $283.84 or 2.83% behind target. With only 4 months left, we will see if we can increase our monthly dividend income and achieve this goal. Stay tuned!
Dear readers, how was your August dividend income?