Wow it’s hard to believe that January 2016 is behind us. Where did the time go? It felt like we were celebrating Christmas and New Year’s just the other day. I guess that’s why people say time flies when you’re having fun. 🙂 Mrs. T and I have been busy getting ready for Baby T2.0’s arrival. Since we are planning for a home birth (we had a home birth with Baby T1.0 too), there are a few things that we need to prepare still. It’s hard to imagine that pretty soon we’ll have two little ones in our household. Both of us are very excited and can’t wait to meet Baby T2.0. Although a mixed baby, Baby T1.0 had blond hair and blue eyes when he was born (he still has blond hair and greenish eyes). I was pretty surprised when I met him for the first time as I was expecting the typical dark hair, brown eyes mixed baby look. So, I’m very curious what Baby T2.0 will look like. Blonde hair and brown eyes? Or dark hair and blue eyes? Genetics is absolutely fascinating. You’d think my Asian genes would overpower Mrs. T’s Vikings Caucasian genes.
Anyway, let’s get back to the topic of the post shall we? 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 as all. We can be sitting on the beach, drinking piña colada and our money is working hard for us instead. Gotta love that.
In January, we received dividend from the following companies:
Pure Industrial REIT (AAR.UN)
Bank of Nova Scotia (BNS.TO)
Corus Entertainment (CJR.B)
Dream Office REIT (D.UN)
Dream Global REIT (DRG.UN)
EnergyPlus Corp (ERF.TO)
General Electric (GE)
H&R REIT (HR.UN)
Husky Energy (HSE.TO)
Inter Pipeline (IPL.TO)
KEG Income Trust (KEG.UN)
Liquor Store (LIQ.TO)
RioCan REIT (REI.UN)
TranCanada Corp (TRP.TO)
Domtar Corp (UFS.TO)
Vanguard All-World Ex Canada (VXC.TO)
In January we received a total of $852.02 in dividend income from 22 companies. Of the $852.02 received, $75.89 was in US dollar and $776.13 was in Canadian dollar. It’s interesting to note that we received very little from US stocks this past month. This is perhaps something we need to focus more and try to get more dividend income in US dollar in the future. 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.
Given our 2016 dividend goal of $13,000, we’re slightly behind on our progress. However, looking at our dividend history, January is typically a slow month for us. It will be interesting to see what February holds for us. We definitely need to continue saving and investing.
Compared to January 2015, we saw a YOY growth of 36.79%. Considering that we’re aiming for a 30% YOY growth in our annual dividend income this year, the 36% growth is nice to see. For those of you that are new, 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 see DRIP as a very effective way to utilize the power of compound interest. Since we use discount brokers like TD and Questrade, we can only enroll in synthetic DRIP, meaning only full stock shares are purchased instead of partial shares. Because of this, we need to ensure that dividend received is equal or more than the stock price. I’m extremely pleased to see that enrolling in DRIP allowed us to purchase additional 15 shares of dividend paying stocks in January and increase our annual dividend income by $27.
Unfortunately in January we saw a few dividend cuts. Husky Energy suspended its dividends, and both Potash and ConocoPhillips cut their dividend payments. Life is not so great for the energy and agriculture companies. The tough macro economics in these sectors reminds us why sector diversification is so important. We plan to add more consumer staple stocks as well as more index ETF’s.
So far in 2016 we received a total of $852.02 in dividend income. We need to be averaging $1,083.33 to reach our annual dividend goal of $13,000 in 2016. We’re slightly behind but I’m not too worried. After all we just added ~$17,000 in our dividend portfolio with multiple rounds of purchases. We’re hoping to continue these purchases to take advantage of the market drop.
Dear readers, how was your January dividend income?