Dividend Investing Monthly Dividend Update

Dividend Income – Jan 2017 Update

Wow it’s hard to believe it’s February already. Where did January go? Seems that Christmas was just yesterday. I guess that’s what happens when we spent half of January in Denmark.

I always get excited to write about monthly dividend income updates. Why? Because the monthly income is money that we receive for doing absolutely nothing. Other than the initial investment and the occasional monitoring, there’s very little work involved. In my opinion, dividend income is one of the best passive income sources.

Without further ado, let’s take a look at our January dividend income.

January Dividend Income

In January 2017 we received dividend income from the following companies:

Pure Industrial REIT (AAR.UN)
Agrium (AGU.TO)
BCE (BCE.TO)
Bank of Nova Scotia (BNS.TO)
Care Capital Properties (CCP)
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)
MCAN Mortgage Corp (MKP.TO)
Prairiesky Royalty (PSK.TO)
Rogers (RCI.B)
RioCan REIT (REI.UN)
Telus (T.TO)
TD (TD.TO)
TransCanada Corp (TRP.TO)
Domtar Corp (UFS.TO)
Vanguard Can All Cap (VCN.TO)
Vanguard All-World Ex Canada (VXC.TO)
Wal-Mart (WMT)

In January 2017 we received a total of $1,112.37 in dividend income from 26 companies. $32.48 was in USD while $1,079.89 was in CAD. This is one of the months that’s Canadian currency dominated. Please note, we use a 1 to 1 currency rate approach. Therefore, 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 in dividend income over time due to changes in the exchange rate.

The top 5 dividend payouts were Bank of Nova Scotia, CIBC, Rogers, Telus, and TransCanada Corp. The top 5 payouts correspond to 46.6% of our January dividend income.

Dividend Growth

Compared to January 2016 we saw a HUGE YOY growth of 30.56!!!Needless to say, I’m extremely pleased and surprised with this number.

If you are wondering, our dividend growth is contributed by three things – investing fresh capital, purchasing of additional shares through dividend reinvesting plan (DRIP), and individual dividend stock’s organic dividend growth each year. Last year alone we added over $45,000 into our dividend portfolio. This is excluding all the additional shares purchased with DRIP and dividend reinvestment. As you can see, utilizing the power of all three of these factors have allowed us to growth our dividend income quite significantly. Can we continue such impressive YOY growth rate for the rest of 2017? Probably not, considering that we received close or over $1,000 for the rest of 2016. If we can continue the YOY growth matrix at over 20% I would be quite happy.

Dividend Increases & DRIP

In January a number of  companies that we own in our dividend portfolio announced dividend increases:

  • Enbridge (ENB.TO) raised dividend by 10% to $0.583 per share.
  • Canadian National Railway (CNR.TO) raised dividend by 10% to $0.4125 per share.
  • Exco Technologies (XTC.TO) raised dividend by 14% to $0.08 per share.
  • Omega Healthcare (OHI) raised dividend by 1.64% to $0.62 per share.
  • ConocoPhillips (COP) raised dividend by 6% to $0.265 per share.
  • BCE Inc. (BCE.TO) raised dividend by 5.13% to $0.7175 per share.
  • Brookfield Renewable Partners (BEP.UN) raised its dividend by 5% to $0.61 per share.

All these raises have increased our annual dividend income by $105.14.

To take advantage the power of compound interest, we are enrolled in DRIP for many of our holdings. In January we managed to DRIP additional 11 shares of various dividend paying stocks. This resulted in an increase of $20.47 in our annual dividend income moving forward.

By utilizing organic dividend growth and DRIP, we have managed to gain a total of $125.61 in our forward annual dividend income. To get the same dividend increase, at a 3% dividend yield, we would have to invest $4,187 of new capital. Essentially we got a pay raise for doing absolutely nothing at all. Gotta love that!

Conclusion and Moving Forward

2017 is still fresh but we have already received a total of $1,112.37 in dividend income already. As indicated previously, our goal for 2017 is receive over $15,000 in dividend income. It’s a challenging goal but we are up for a challenge. I can’t wait to see what 2017 has in store for us.

Dear readers, how was your January dividend income?

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49 Comments

  • Reply
    Matthew
    February 13, 2017 at 8:06 am

    Wow huge growth from last year. Congrats on the great start to 2017

    • Reply
      Tawcan
      February 13, 2017 at 4:54 pm

      Thanks Matthew. Very happy with our progress.

  • Reply
    R
    February 13, 2017 at 8:38 am

    Wow.. impressive!

    Great to see you do so well in this. Given that i just don’t have the time or the inclination to purchase individual stocks, I invest all of my savings in a couple of low-cost ETFs. Dividends are paid out semi-annually but nothing compared to what you’re able to accomplish.

    Love your posts!

    • Reply
      Tawcan
      February 13, 2017 at 4:55 pm

      Low-cost ETFs is a great way to go as well. 🙂

  • Reply
    eresc79
    February 13, 2017 at 9:02 am

    Congrats on your good progress Bob!
    Quick questions:
    1) Which brokerage do you use?
    2) How do you extract from the brokerage the totals for dividends each month into a format easy to import to excel or googlefinance?

    • Reply
      Tawcan
      February 13, 2017 at 4:56 pm

      Hi,

      We use Questrade and TD Waterhouse. For dividends each month I just check the account activities at end of the month and enter the spreadsheet manually.

  • Reply
    Ten Factorial Rocks
    February 13, 2017 at 9:06 am

    Good show Bob! Mine was 40% yoy growth for Jan, but that’s due to a big dividend that should’ve hit Dec 30 but due to new year weekend, came in early Jan. If I remove that, the growth was 14%. Either way, numbers that we can literally take to the bank!

    • Reply
      Tawcan
      February 13, 2017 at 4:56 pm

      Those are pretty awesome YOY growth numbers regardless. Congrats!

  • Reply
    Mr. Tako @ Mr. Tako Escapes
    February 13, 2017 at 9:57 am

    Wow, that’s some incredible growth Tawcan! Congrats! I’m really impressed by the size of the dividend increases you received – Anything 10% or over is very impressive!

    At some point, that growth is going to slow down considerably. The law of larger numbers will begin to bite, as it has for me. Now I need to put in almost $100k in new capital every year to see a 10% growth rate.

    Enjoy it while it lasts!

    • Reply
      Tawcan
      February 13, 2017 at 4:57 pm

      Hi Mr. Tako,

      Yes I have mentioned many times on the blog that the dividend growth will eventually slow down as we reach bigger and bigger dividend income. The law of larger numbers will being to bite for sure. For now I’m going to enjoy the 30% YOY growth. 😀

  • Reply
    Dividends 4 Future
    February 13, 2017 at 9:58 am

    Very nice, January over $1000 already, $1500 by end of year?

    Congrats on the growth

    • Reply
      Tawcan
      February 13, 2017 at 4:57 pm

      Thanks, $1500 per month would be very awesome!

  • Reply
    DivHut
    February 13, 2017 at 10:47 am

    Impressive results as usual. Your portfolio is really moving along quite nicely over the last year or so. Your year over year gains is what I really took notice though. Being able to put up over 30% growth just highlights your commitment to this portfolio with new buys, reinvestment and dividend raises. Congrats on a strong start to ’17!

    • Reply
      Tawcan
      February 13, 2017 at 4:58 pm

      Thanks DivHut, we have put in quite a bit of capital last year. That’s our money working hard for us!

  • Reply
    Divnomics
    February 13, 2017 at 11:57 am

    Wow, amazing results! Very nice to see how the organic dividend growth and DRIP can have such a big impact on your future gains. Can’t wait to see what the rest of the year will bring!

    • Reply
      Tawcan
      February 13, 2017 at 4:58 pm

      Thanks Divnomics. Glad you enjoyed the breakdowns.

  • Reply
    ambertreeleaves
    February 13, 2017 at 12:16 pm

    Great results. When the trend stays like this in 2017, you will smash the goal!

    It alos looks like you will have 12 months with 1K or more of income…sweet!

    • Reply
      Tawcan
      February 13, 2017 at 4:59 pm

      Thanks ambertreeleaves, hopefully the trend will continue for the rest of 2017.

  • Reply
    Joe
    February 13, 2017 at 1:37 pm

    Great! I like the YOY growth. I’ll add that to our chart.

    • Reply
      Tawcan
      February 13, 2017 at 4:59 pm

      Thanks Joe. Would love to see your chart. 🙂

  • Reply
    mrspickypincher
    February 13, 2017 at 2:31 pm

    Woop woop! It’s so great to see such awesome growth!
    Since we’re still getting out of debt, our January dividends were quite low. I think I got $12 from my IRA, which I always reinvest, since it’s still quite young.

    • Reply
      Tawcan
      February 13, 2017 at 4:59 pm

      Rome wasn’t built in one day, neither should your dividend income. Keep it up!

  • Reply
    Ten Factorial Rocks
    February 13, 2017 at 4:42 pm

    I just noticed that you have that same stock I was referring to: CCP. It should have paid out end of Dec but it hit the account in early Jan. Being a high yielder, it would’ve given a big boost to your Jan Div number. Try removing that (allocate that to Dec dividends) and re-calculate YOY growth. It would be good to get true organic growth numbers.

    • Reply
      Tawcan
      February 13, 2017 at 5:00 pm

      We actually didn’t receive that much dividend from CCP so it wouldn’t have made much changes to the YOY growth. Maybe reduce our number to 29 or 28%.

  • Reply
    dividendsandhobbies
    February 13, 2017 at 4:47 pm

    Awesome month you have. And quit a few strings of 1,000 dividends a month.

    • Reply
      Tawcan
      February 13, 2017 at 5:00 pm

      Thanks dividendsandhobbies.

  • Reply
    wealthfromthirty
    February 13, 2017 at 4:51 pm

    Outstanding result Bob – a paycheque like that every much is sure to please, and YoY growth of 30% very nice. No dividends to report for me this month, but I’m hoping to start investing mid-year, to turn that baby around!

    • Reply
      Tawcan
      February 13, 2017 at 5:01 pm

      When I started I had a few months of $0 dividend income too. Just keep investing and you’ll soon see more and more dividend income. 🙂

  • Reply
    The Financial Tech
    February 13, 2017 at 5:18 pm

    Wow that’s an amazing growth compared to last years. Congrats on making that money work for you.

    • Reply
      Tawcan
      February 13, 2017 at 9:00 pm

      Thanks The Financial Tech. Having money working hard for us is great.

  • Reply
    Mark Seed (@myownadvisor)
    February 13, 2017 at 7:04 pm

    Well done! I just posted our income as well. Great minds…. 🙂

    Cheers Bob,
    Mark

    • Reply
      Tawcan
      February 13, 2017 at 8:59 pm

      Thanks Mark! 🙂

  • Reply
    buyholdlong
    February 13, 2017 at 8:50 pm

    That is a massive increase in YOY percentage wise. You would have to be happy with that for sure! Congratulations.

    • Reply
      Tawcan
      February 13, 2017 at 9:00 pm

      Thanks buyholdlong, very happy with our progress.

  • Reply
    JC
    February 14, 2017 at 1:01 am

    Great stuff Tawcan. Over $1k and a 30% YoY increase is awesome. One thing I like to look back at now that the snowball has built up is the amount of monthly dividends you receive compared to previous years. For January you’ve already beat all of the dividends that you were paid in 2011 and nearly 50% of the dividends from 2012. That really shows the power of committing to an investment strategy and dividend growth. All the best in February.

    • Reply
      Tawcan
      February 15, 2017 at 6:41 am

      Thanks JC. That’s a good way to look at the snowball affect.

  • Reply
    Team CF
    February 15, 2017 at 2:28 am

    Sweet progress! Great to see many dividend increases as well, that’s very good sign. CAD15.000 is a pretty handsome target for this year, best of luck

    • Reply
      Tawcan
      February 15, 2017 at 6:42 am

      We have aimed high this year, getting $15,000 in dividend will be pretty awesome for sure. Since we are not converting USD to CAD we’re just looking at the actual numbers.

  • Reply
    Investment Hunting
    February 15, 2017 at 4:40 pm

    Awesome results. Your year-over-year dividend income is fantastic. Keep up the good work.

    • Reply
      Tawcan
      February 15, 2017 at 7:17 pm

      Thanks Investment Hunting.

  • Reply
    Micro Dividends
    February 15, 2017 at 8:34 pm

    This is one of the few impressive portfolio out there in the $1k range. It’s quite surprising to see what amount of growth by simply investing with discipline. Thanks for sharing your progress and inspiring the rest of us!

    • Reply
      Tawcan
      February 16, 2017 at 1:35 am

      Thanks Micro Dividends. Hopefully we’ll get to $1.5k range soon.

  • Reply
    eresc79
    February 15, 2017 at 11:23 pm

    I just discovered that with RBC DI you can export the activity with a customized time window (I did a year) in CSV format, which is easy to import into Excel. I’ll be using the isnumber(search) and sumif functions in excel to automate dividend tracking. Check if Questrade and TD allow you to export also in CSV, should make it easier.

    • Reply
      Tawcan
      February 16, 2017 at 1:36 am

      Great suggestion, will have to investigate.

  • Reply
    January Dividend Income from YOU the Bloggers! - Dividend Diplomats
    February 17, 2017 at 5:56 pm

    […] Tawcan – $1,112.37 – The journey is bitter sweet, right?  MASSIVE GAINS!  Keep it up, that growth makes us envious! […]

  • Reply
    Evan @ My Journey to Millions
    February 21, 2017 at 9:49 am

    Wow, look at that trend over the past few years, looks steady. Do you get nailed with excess fees for foreign investing? I am US based and with TD and I am pretty sure I would get destroyed in commissions if I invested in non-ADR foriegn companies

    • Reply
      Tawcan
      February 21, 2017 at 6:44 pm

      We trade US stocks in RRSP to avoid tax consequences.

  • Reply
    Dividends Down Under
    March 12, 2017 at 11:36 pm

    Awesome job Tawcan. I love that you’re now looking at over $1,100 each month now. That is major re-investing just on its own.

    Tristan

    • Reply
      Tawcan
      March 14, 2017 at 1:19 pm

      Hi Tristan,

      Yup the snowball is getting bigger and bigger. 😀

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