Wow where did July go? Between having fun at work,
looking running after the kids, tending the garden & yard, and enjoying the summer, July just slipped by. Baby T2.0 is waking up screaming a bit less at night nowadays so Mrs. T and I are finally getting slightly better sleep. Hopefully soon we will be able to get 7 or so hours of continuous sleep.
In terms of our garden & yard, plants are growing nicely. We completed this year’s strawberry harvest and trimmed down the strawberry plants. We have also started harvesting tomatoes and garlic. Home-grown tomatoes taste so much better than store-bought ones. They are packed with flavours.
A few weeks ago I asked readers to fill out a survey. It has been interesting reading all the responses. Thank you very much for those of you that have taken the time to fill out the survey. If you haven’t filled out the survey, please do so, I would really appreciate that.
July Dividend Income
In July 2017 we received dividend income from 24 companies:
- Pure Industrial REIT (AAR.UN)
- Agrium (AGU.TO)
- BCE (BCE.TO)
- Bank of Nova Scotia (BNS.TO)
- 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)
- Enbridge Income Trust (ENF.TO)
- General Electric (GE)
- H&R REIT (HR.UN)
- Inter Pipeline (IPL.TO)
- KEG Income Trust (KEG.UN)
- Coca-Cola (KO)
- Prairiesky Royalty (PSK.TO)
- Rogers (RCI.B)
- RioCan REIT (REI.UN)
- Smart REIT (SRU.UN)
- Telus (T.TO)
- TD (TD.TO)
- TransCanada Corp (TRP.TO)
- Domtar Corp (UFS.TO)
In total we received $1,282.42 in dividend income.
We have yet another all-time monthly dividend income record. Woohoo! It’s pretty neat that we have been breaking the all-time monthly dividend income record regularly in 2017.
Out of the $1,282.42 dividend income that we received in July, $138.61 was in USD and $1,143.81 was in CAD. July was definitely a month that was CAD heavy. 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 July 2017 were CIBC, BCE, Coca-Cola, Telus, and TD. The top 5 payouts accounted for 46.44% of our July 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.
Some of you have been asking about our monthly dividend income breakdown across the different accounts. A good request and definitely worthwhile to take a closer look. What’s our breakdown?
- Taxable: $277.44 or 21.65%
- RRSPs: $371.06 or 28.93%
- TFSAs: $633.92. or 49.43%
As you can see, most of the July dividend income was deposited in either RRSPs or TFSAs. Therefore, $1,004.98 from July was completely tax-free. This is by design and shouldn’t come as a surprise. All the dividend income received in taxable accounts are considered as eligible dividends. We only invest in non-Canadian dividend stocks in our RRSPs to avoid the 15% withholding tax.
Compared to July 2016, we saw a YOY growth of 20.19%. To be honest, I was very surprised to see a YOY growth number higher than 20%. Can we end the year at a number that’s above 20% YOY growth? I suppose we will have to wait and see.
July was a quiet month when it comes to dividend increases. Only one company in our portfolio announced dividend increase:
- Omega Healthcare raised its dividend by 1.59% to $0.64 per share
Hopefully in August we will see more dividend increase announcements.
Dividend Stock Transactions
In July we saw a few days of volatility and the market was down significantly. Using this opportunity we added a few more IPL shares.
- Purchased 118 shares of IPL
This purchase increased our annual dividend income by $191.16.
Thanks to 24 pay cheques, we had yet another monthly dividend record in July. It’s amazing to see that our money is working hard for us so we don’t have to.
So far in 2017 we have received a total of $8,439.18 in dividend income. This means we have already surpassed the annual dividend income that we received in 2014. It’s pretty amazing how much progress we have made in 3 years’ time. I am very thankful for this amazing progress.
Dear readers, how was your July dividend income?