Dividend Income – Feb 2018 Update

We are back from our Maui vacation. Boy it felt good to know that we saved ourselves over $10,000 for this particular trip through very simple travel hacks. It was my first time to Maui and this tropical island was absolutely amazing! It’s such a beautiful island with so much to do. It was a much needed vacation and our family had a blast.

Here are a few pictures I snapped with my cellphone:

Beautiful sunset

wild turtles!

At the hotel resort

I promise that I will write a complete trip report later with more fabulous pictures.

While we were vacationing on Maui, our dividend portfolio was generating money for us. I love receiving money for doing absolutely nothing at all!

February Dividend Income

In February 2018 we received dividend income from the following companies:

  • Apple (AAPL)
  • Pure Industrial REIT (AAR.UN)
  • AbbView (ABV)
  • Bank of Montreal (BMO.TO)
  • 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)
  • Nutrien Ltd (NTR.TO)… from Potash shares
  • Omega Healthcare (OHI)
  • Procter & Gamble (PG)
  • Prairiesky Royalty (PSK.TO)
  • RioCan (REI.UN)
  • Royal Bank (RY.TO)
  • Sabra Health Care (SBRA)
  • Starbucks (SBUX)
  • SmartCentres REIT (SRU.UN)
  • AT&T (T)
  • Vodafone (VOD)
  • Verizon (VZ)

We received a total of 26 paycheques in February 2018 that added up to $1,352.06. This is the highest monthly dividend income we have ever received since we started investing in dividend growth stocks. Woohoo! It’s nice that we broke this record in January 2018 then again in February. Here’s to breaking the record again in March!

Out of the $1,352.06 received, $351.55 was in USD and $1,000.51 was in CAD. This was roughly a 30-70 split between dividend received from US and Canadian dollars.

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 February 2018 were Bank of Montreal, National Bank, Royal Bank, Omega Healthcare, and Emera. Dividend payouts from these 5 companies accounted for 57.7% of our February dividend income, or $780.58.

Dividend Income Breakdown

We hold our dividend stocks in taxable accounts, RRSPs, and TFSAs. Every year, we maximize tax-advantaged accounts first before investing in taxable accounts.

We do this so we can be as tax efficient as possible. Why pay extra taxes when we can avoid them by utilizing these tax-advantaged accounts? It seems like a no brainer to me. This is why I am always shocked to hear people who are investing using taxable accounts when they have tons of RRSP and/or TFSA contribution rooms left.

For February 2018 dividend income, here’s the breakdown of the different accounts:

  • Taxable: $409.24 or 22.5%
  • RRSPs: $638.5 or 47.2%
  • TFSAs: $409.24 or 30.3%

Effectively, only 22.5% of our February dividend income was taxable. We constructed our taxable accounts so we only receive from stocks that pay out eligible dividend income.

Dividend Growth

Compared to February 2017, we saw a respectable YOY growth of 11.87%. While it wasn’t as good as the 17.04% YOY growth that we saw in January, I was still quite happy to see an above 10% number.

Dividend Increases

In February, a number of stocks that we own in our portfolio announced dividend increase:

  • Manulife raised its dividend by 7.32% to $0.22 per share.
  • Suncor raised its dividend by 12.50% to $0.36 per share.
  • BCE raised its dividend by 5.23% to $0.755 per share.
  • Intact Financial raised its dividend by 9.37% to $0.70 per share.
  • RioCan raised its dividend by 2.13% to $0.12 per share.
  • TransCanada Corp raised its dividend by 10.4% to $0.69 per share.
  • Coco-Cola raised its dividend by 5.41% to $0.39 per share.
  • AbbView raised its dividend by 35% to 0.96 per share.
  • Waste Management raised its dividend by 9.41% to $0.465 per share.
  • Walmart raised its dividend by 1.96% to $0.52 per share.
  • Magna International raised its dividend by 20% to $0.33 per share.
  • CIBC raised its dividend by 2.31% to $1.33 per share.
  • Royal Bank raised its dividend by 3.3% to $0.94 per share.
  • Bank of Nova Scotia raised its dividend by 3.80% to $0.82 per share.
  • PrairieSky Royaltyraised its dividend by 4% to $0.0625 per share.
  • Canadian Natural Resources raised its dividend by 21.82% to $0.335 per share.
  • TD raised its dividend by 11.67% to $0.67 per share.

Wow, February was a particular good month for dividend increases. I was very pleased to see so many companies decided to increase their dividend payout. Hurray!

These announcements have increased our annual dividend income by $430.34!!!

Damn! That’s like adding $14,344.67 of fresh capital into our dividend portfolio if the dividend yield was 3%.

Pretty awesome if you were to ask me!

Dividend Stock Transaction

Although many stocks we own raised dividend payout in February, we were busy on the purchase front as well. We purchase the following dividend stocks in February.

  • Purchased 57 shares of Enbridge (ENB.TO)
  • Purchased 36 shares of TD (TD.TO)
  • Purchased 20 shares of Bank of Nova Scotia (BNS.TO)
  • Purchased 50 shares of Emera (EMA.TO)

These purchases increased our annual dividend income by $371.70. 

Basically we took advantage of the market volatility in February to add some shares to our existing positions. Gotta love that both TD and BNS raised their dividend payout in the same month as our purchases.

Conclusion

With 2 months down, we have received $2,692.89 in dividend income already. We have already received more in dividend income than what we received in 2012 and close to 50% of what we received in 2013. The dividend snowball is definitely getting bigger and bigger.

Dear readers, how was your February dividend income?

Written by Tawcan
Hi I’m Bob from Vancouver Canada, I am working toward joyful life and financial independence through frugal living, dividend investing, passive income generation, life balance, and self-improvement. This blog is my way to chronicle my journey and share my stories and thoughts along the way. Stay in touch on Facebook and Twitter. Or sign up via Newsletter