Dividend Income – July 2017 Update

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.

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Pumpkin!
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Pretty sunflowers
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We trimmed down the strawberry plants
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Plants are overgrown in the greenhouse.
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Tomatoes!
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Garlic! Our house is a vampire free zone. :p

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)

Tawcan dividend income July 2017 chart

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.

Dividend Growth

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.

Tawcan YOY growth July 2017

Dividend Increases

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.

Summary

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.

Tawcan dividend income July 2017

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?

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47 thoughts on “Dividend Income – July 2017 Update”

  1. Congratulations.

    How much money you have to generate your monthly income. This is a good example and inspiration for me.
    Thank you.

    Reply
  2. Congrats on a great month! Looks like we were neck and neck this month!

    Awesome garden too. We’re trying to grow garlic this year, first time, will let you know how it goes.

    Reply
  3. Dear Bob,

    Those are great numbers and I am so jealous of your garden. We have been flooded this year in Ontario and the only thing that came up and survived was lettuce and dill. Good thing it isn’t 1925 or we wouldn’t survive the winter :).

    I still have great disparity in dividend income between the months, however, over the next year or two, I’m hoping to level things out so that I can have a regular and sufficient monthly income.

    Besos Sarah.

    Reply
  4. Can you comment on Dream Office REIT? The 1/3 reduction in dividend is troubling of course but I wonder whether it makes it a strong contender to keep as it’s getting its’ financial self in order. At 6% still for me it’ll still a darn good return.

    Reply
    • Sucks that Dream Office reduced the dividend by 1/3. But it’s better than keeping unsustainable distribution. Having said that, this is the 3rd cut from Dream Office I believe, so maybe it’s time to trim the holding for us?

      Reply
  5. Awesome job for July. Looks like your dividend income is very even throughout 2017. I have my ups and downs between my high months (end of quarter) and low months (start of quarters). I guess it’s all good as long as I can beat my previous year total. Keep up the good work with your dividend payers!

    Reply
  6. Nice dividend income Bob! 20% YoY growth is pretty fantastic.

    Once you get up to where I am ($50k+ per year) it gets much harder to growth those dividends. I’m hoping for 10% growth this year.

    Nice garden too! That’s an impressive garlic crop!

    Reply
  7. Solid Steady 1k months ! Congrats ! I have beaten you in Dividend Income for July 2017. Glad I did this time ;-))
    I am quite happy about my income month. Congrats on the garden too. Looks great to harvest your own fruit and vegetables.

    Reply
  8. Mmmm, another great dividend month, another great harvest in the garden too! From your chart it looks like you had a dividend paid every month of your first year but March? Did you invest pretty hard and fast in 2011 or manage that some other way?? Hope the rest of august is good to the Tawcan clan.

    Reply
  9. Outstanding results this year! To have over $1,000 per month coming in but still have a 20% growth rate is fantastic. If that rate kept up just a couple more years you are over $2,000 a month! Fun stuff to watch.

    Congrats

    ADD

    Reply
  10. You guys are doing so well with dividend. That’s the advantage of having a job and being able to add more money every month. Nice job! ๐Ÿ™‚

    Reply
    • Thanks Joe, having a job to have income each month to put toward the portfolio is great but what’s more important is having a high savings rate. ๐Ÿ™‚

      Reply
  11. Awesome job Tawcan! You’re always crushing it and it was cool to see you surpass your 2014 total. July was a record month for me but I am still well behind my goal pace. We’ll see what happens. I think you’ll beat 20% YoY. Best of luck,

    Passive Income Dude

    Reply
  12. Sweeeeeeeeeeeeet dividend income. I changed my investing strategy to GARP investing lately but I am glad to see you are killing it with dividend growth investing! Great job!

    Cheers!

    BSR

    Reply
  13. Bob, fantastic progress on your investments. Nice looking garden. Both seem to be yielding very well indeed.

    From a retired boomer who is also harvesting investment dollars and garden vegetables, all the best.

    Reply
  14. Your garden fills me with such envy. I wished I could say my garden was booming – wait, it is. It’s booming with weeds.

    Your dividend income is also very inspiring. I’m just starting out on my investing journey, so fingers crossed will be able to have as good results to show in the future!

    Reply

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