Wow, it’s hard to believe it’s September already, summer is in the rearview mirror, and our kids are back in school. I guess that’s what happens when you’re having fun.
As usual, before we dive into the actual monthly dividend income update, I’ll share some life updates with pictures. There might be more pictures than usual so I do want to apologize if there are too many. 🙂
In early August we continued harvesting produce from our backyard garden.
Per my Q1 goals and resolutions update, we booked a vacation to the Maritime provinces back in March. So in mid-August, we stepped foot on a plane for the first time since early 2020 and spent about 2.5 weeks in Nova Scotia, New Brunswick, and PEI.
We spent three days on Cabot Trail and explored the beautiful trail. We were glad that we took our time and probably could have spent more time on Cabot Trail.
We then spent two nights in Moncton to check out the beautiful Hopewell Rocks at low tide and the surrounding area. Both kids got really muddy that day…
One night in Moncton I made the mistake of ordering about 80 pieces of sushi after having some yam tempura and yakisoba. Not sure what I was thinking! Needless to say, we didn’t finish and had to pack up leftovers for lunch the next day.
Our favourite part of the vacation was spending time on PEI and exploring the island. People were extremely friendly and we had a lot of fabulous food. Our favourite restaurants on PEI were The Mill in New Glasgow and The Blue Mussel Cafe in North Rustico Harbour.
While in Charlottetown we were able to see Anne the Green Gables the Musical, Canada’s longest-running musical. Before we went on our trip, I finished reading Anne the Green Gables to both kids so they knew the storyline. We all really enjoyed the musical.
Both kids also loved Butterfly House and Cavendish Beach. We ended up spending two days on the beach and even went in the ocean for a swim.
We then ended the trip in Halifax by exploring the city on foot for five days. We really liked Halifax Citadel.
Considering how much we’ve enjoyed the Maritimes, I’m completely heartbroken to see the damages tropical storm Fiona has caused in the region.
Dividend Income – August 2022
Phew, that was a lot of pictures! Back to dividend income update shall we? In August 2022, we received dividends from the following companies:
- Apple (AAPL)
- AbbVie (ABBV)
- Bank of Montreal (BMO.TO)
- Canadian Natural Resources (CNQ.TO)
- Costco (COST)
- Dream Industrial REIT (DIR.UN)
- Emera (EMA.TO)
- European Residential REIT (ERE.UN)
- Granite REIT (GRT.UN)
- Magna International (MG.TO)
- National Bank (NA.TO)
- Omega Healthcare (OHI)
- Procter & Gamble (PG)
- RioCan REIT (REI.UN)
- Royal Bank (RY.TO)
- Starbucks (SBUX)
- SmartCentres REIT (SRU.UN)
- Verizon (VZ)
The dividend payments from 18 different companies added up to $2,783.72. August’s dividend income was higher than expected thanks to CNQ’s special dividend of $1.50 per share.
Historically, August has been one of the weaker dividend months for us, mostly because not as many companies pay dividends in August, per the Canadian dividend calendar. Therefore, it was nice to see that we had a YoY increase of 56.72%! Holy cow!!!! This marked the highest YoY increase we’ve seen so far in 2022. Crazy eh?
Out of the $2,783.72 received, $461.44 was in USD and the remaining $2,322.28 was in CAD or roughly a 20-80 split. Long time readers will remember that we do not convert USD to CAD when reporting our dividend income. We are doing this to keep the math easy and to avoid fluctuations in our monthly dividend income caused by changes in the exchange rate.
The top five dividend payers in August were Omega Healthcare, Bank of Montreal, Canadian Natural Resources, National Bank, and Royal Bank (not in order). Dividend payments from these five companies added up to $1,999.81 and accounted for 71.8% of our August dividend income.
We made some dividend transactions in early August, just before our vacation.
First of all, we decided to close out our positions in Rogers (RCI.B) and European Residential REIT (ERE.UN). Both companies haven’t done much in terms of the share price over the last year. Rogers has faced a lot of headwinds in the past year. As the company continues to struggle, I believe our money can be better invested in the likes of Telus and BCE.
For European Residential REIT, as I wrote in the reviewing every dividend transaction between 2020 – 2022 post: “We wanted to buy a smaller REIT thinking it might get acquired by a bigger REIT later, just as what happened with Pure Industrial REIT. So far ERE.UN hasn’t done all that great in terms of share price performance. It was a mistake for us to purchase the stock, as we looked too far ahead, and thought that we might profit from a potential acquisition.” With the stock price not doing much, I decided to sell ERE.UN and reinvest the money elsewhere.
Selling Rogers and European Residential REIT decreased our annual dividend income by $499.
Since we don’t like a decrease in dividend income, we used the money from these transactions and some new cash to purchase the following dividend paying stocks:
- 49 shares of Bank of Montreal
- 206 shares of BCE
These two purchases added $1,030.52 toward our annual dividend.
We purchased more Bank of Montreal because it was slightly underweight compared to the rest of the five Canadian banks we own. Ideally, we want roughly equal weighting for all six banks.
After getting rid of Rogers, our portfolio exposure to the telecommunication sector was a bit lower than desired, so we added more BCE shares to increase the exposure.
We now own 49 individual dividend stocks and 1 index ETF. I’ll be the first one to admit that 49 individual stocks are probably still too many. It would be nice to drop that number to around 40 in the near future. Which stocks should we consider selling? Some candidates include Intel, Dream Industrial REIT, Hydro One, and Magna International. But we don’t have to make that decision right away.
The selling and buying of different stocks meant we added a total of $531.52 toward our annual dividend income. At a 4% yield that’s the equivalent of adding $13,288.
Dividend Reinvestment Plans (DRIP)
For the most part, we try to keep our investment strategy as simple as possible. This prevents us from second-guessing ourselves and having buyer’s remorse. One of the ways to keep our investment strategy as simple as possible is to enroll in dividend reinvestment plans whenever we’re eligible.
By dripping shares every quarter or every month, we keep many of our holdings on auto-pilot. We drip additional shares when the share price is low and dollar cost average through time; when the market is high and we can’t drip, we would take the money and reinvest it elsewhere.
In August we dripped the following shares commission free:
- 3 shares of BMO.TO
- 3 shares of CNQ.TO
- 1 share of EMA.TO
- 1 share of ERE.UN
- 3 shares of FTS.TO
- 2 shares of INTC
- 5 shares of NA.TO
- 3 shares of OHI
- 2 shares of REI.UN
- 4 shares of RY.TO
- 4 shares of SRU.U
Thanks to DRIP we added 31 shares and reinvested $2,122.02 immediately. In other words, we had a DRIP ratio of 76.2% in August. Thanks to DRIP we also added $89.25 toward our annual dividend income.
I’ll be talking more about DRIP at the Canadian Financial Summit in October. Please stay tuned for more details.
It has been a few quiet months on the dividend raise front. That trend continued in August, unfortunately. The only company that announced a dividend hike in August was Canadian Power Corp. The CPX board announced a 6% dividend increase which resulted in an increase in $19.63 of dividend income for us.
Summary – August 2022 Dividend Income
After eight months our dividend portfolio has generated a total of $27,957.54 in dividend income. In the same time frame last year, we only received $20,109.65, so we have seen an impressive YoY increase of over 39%!
Our simple strategy of living below our means, earning more money, increasing our savings gap, investing regularly, and taking advantage of compounding is working very well!
By end of September, I have no doubt that our dividend income will surpass the $30,912.20 we received last year.
To put our dividend income into perspective:
- After 243 days, our dividend portfolio generated $115.05 per day or $4.79 per hour.
- After 36 working weeks, our portfolio generated an equivalent of $155.32 per day or an hourly wage of $19.41.
Considering BC’s minimum wage is $15.65 per hour, our dividend portfolio is already producing more money than one of us working at a minimum wage job. We are very grateful and appreciative of our dividend portfolio. It has taken us many years to build up a seven-figure dividend portfolio but the work is totally worth it!
Dear readers, how was your August dividend income?
31 thoughts on “Dividend Income – August 2022 Update”
Another fantastic month it seems. We all loved the extra from $CNQ!
Wonderful pictures. Reminds me of our life in NS. We miss Atlantic Canada. Maybe we relocate back there at some point, who knows.
https://vibrantdreamer.com/combined-canadian-dividend-income-august-2022/ is where I am including yours and everyone else as always (Sorry for the delay as I was traveling, again!)
As always, thanks for putting together the summary. 🙂
Hi, I’m a newer graduate and just found a full time job in my field, do you think it’s a smart idea just putting some money into VDY as a starting investment? Thanks!
I’d invest in either VEQT or XEQT so you’re well diversified globally.
Hi tawcan ! Nice to follow you!
I would like to know why you want to sell :dir-un ?
Mostly because it hasn’t raised dividends for many years.
Love the updates! AQN has had a rough ride this month, any indication why? Is it still a good choice to hold?
Yea AQN has had a rough ride lately. We plan to add more, believe this is a good long term hold, might as well take advantage of the discounted price.
I am new to dividend investing and thus had a few questions. If you can help great.
I wanted to know how you keep track of what you have paid for vs what you got via DRIP. Also, is there any apps that you would recommend for tracking the portfolio?
Simply use a spreadsheet – https://www.tawcan.com/step-step-guide-make-google-spreadsheet-dividend-portfolio-template/
Great photos and awesome dividend income for the month. Your veggies look perfect. What’s the secret to keeping pests away?
Plant complementary crops to keep pests away. 🙂
U forgot to visit Fredericton, Capital NB, home of UNB, oldest University in North America. Next time?
Yea we thought we didn’t have enough time to visit Fredericton, next time for sure.
Nice to see lovely pictures of your family vacation!!
It seems like your dividend income is growing impressively. I have one question for you (which you might have answered before) – What is ROI on your base (money invested)?
I haven’t disclosed our ROI recently but I had a post a few years ago – https://www.tawcan.com/dividend-portfolio-beating-the-tsx/
Congratulations on your wise investments while still putting your family ahead of financial gain.
Great pictures and thankful that you took the holiday and created great memories.
Continue to take the time to enjoy life.
Thank you, Michael.
Great story-telling with amazing pics; thanks for sharing! How old is your 2nd child?
I agree that going down to 40 shares and perhaps even 35 is a good bet. No need to add stocks just for the sake of it. I am now set on 30 stocks + 2 ETFs (XEQT + XAW) and will leave it at that. I had closed out Rogers earlier this year as well so both of our thinking are along the same line.
A suggestion: consider doing quarterly dividend graph (rather than monthly) by year. I’ll email you a picture of mine so you have an idea. This allows the reader (and you) to see graphically the cool growth you’re experiencing much easier as monthly graphs have lots of ups and downs. As-in, Jan, Apr, July and Oct are higher but Feb, May, Aug, and Nov are low.
Thanks for a good post!
Thanks R. Our youngest is 6 now.
Yup, good suggestion about the quarterly dividend graph, it probably will be easier to see. 🙂
Glad you could visit the East Coast.. that’s where I grew up and spent half my life and it’s always nice to return to see family 🙂
1) Do you have a post on how you create all these nifty graphs? I’d like to spruce up my google spreadsheets with something like this. Sorry if I missed it in one of your sections.
2) Curious why you are contemplating dropping MG. Is there 5yr CAGR too low?
See here – https://www.tawcan.com/step-step-guide-make-google-spreadsheet-dividend-portfolio-template/
I didn’t go through how to create graphs so maybe a post is overdue.
Considering dropping MG simply to consolidate holdings.
Thanks for the link and interesting! I quite like their prospects with the EV evolution over the next decade.
Inspired me to start a dividend investing portfolio with my wife, we are both 25 and have about 7k in. A long way to go but thanks for the spark to start somewhere.
It takes time to build a dividend portfolio, it took us a while so keep going.
What a huge gain YoY, very impressive. I always love to see your photos of your garden and the trips or weekends away you take with your family. The drive to build income is strong, but being able to enjoy life along the way is also important. We all need that reminder at times.
Yea we were surprised ourselves too with the YoY increase. 🙂
Great post as always, Bob. We were also just in the east coast for a week this month and loved it! Food, people and different pace to life are very attractive when moving towards FI. Hoping the Fiona cleanup goes smoothly for our neighbours to the east. My favourite part of our trip was the beaches, some of the cleanest I have ever seen (if you can handle the cold water, lol).
Good call on dumping Rogers and nice YoY August growth on dividends. We also added more to BMO and BCE recently. Closing out EOY purchases, we would like to pick up more GRT as it is getting pounded right now.
Thanks Josh. The East coast is pretty amazing. Really hope the Fiona cleanup goes smoothly.
Good food, good sights, and great fun! That is how you enjoy life! 🙂 Congrats, on great dividend income and awesome YOY growth! You will definitely break last years dividend income for sure! Keep up the great work! Always very impressive. 🙂
Thanks My Dividend Dynasty. It was a nice vacation. 🙂