Wow I can’t believe 2016 is half way over already. It’s that time of the month where I post my favourite topic – monthly dividend income update! 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 at all. Gotta love getting paid while changing Baby T2.0’s diaper. Can you believe that Baby T2.0 is already 3 months old? I honestly don’t remember the time before her arrival. The house was so much quieter with only Baby T1.0 running around. I also don’t remember what life was like before we had Baby T1.0 and Baby T2.0. Isn’t it weird?
In June we saw Britain deciding to exit the European Union. The referendum result sent the market tumbling for a couple of days. The market has rebounded since. Unfortunately, I didn’t pull any buy triggers as I thought the market would continue to tumble. Oops, I guessed wrong. Deep down I’m praying for more market volatility so we can buy some dividend stocks. It’s certainly getting harder and harder finding bargains lately.
Without further ado, let see how much dividend income we received for June 2016.
In June, we received dividend income from the following companies:
Pure Industrial REIT (AAR.UN)
Brookfield Renewable Partners (BEP.UN)
BP plc (BP)
Care Capital Properties (CCP)
Corus Entertainment (CJR.B)
*** Canadian Natural Resources (CNQ.TO) ***
Canadian National Railway (CNR.TO)
Dream Office REIT (D.UN)
Dream Global REIT (DRG.UN)
Dream Industrial REIT (DIR.UN)
Evertz Technologies (ET.TO)
H&R REIT (HR.UN)
Higher Liner Foods (HLF.TO)
Intact Financial (IFC.TO)
Inter Pipeline (IPL.TO)
Johnson & Johnson (JNJ)
KEG Income Trust (KEG.UN)
Manulife Financial (MFC.TO)
Magna International (MG.TO)
MCAN Mortgage Corp (MKP.TO)
Royal Dutch Shell (RDS.B)
RioCan REIT (REI.UN)
Unilever plc (UL)
Vanguard Can All Cap (VCN.TO)
Vanguard All-World Ex Canada (VXC.TO)
Waste Management (WM)
Phew! That was a long list! We received dividend income from a total of 40 different companies!!! That’s like receiving paycheques from 40 different employers. Talk about income diversification.
In total, we received $1,099.33 in dividend income in June 2016. Of the $1,099.33 received, $321.88 was in US dollar and $777.45 was in Canadian dollar. 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 in dividend income over time due to changes in the exchange rate.
The top 5 payouts came from Chevron, Enbridge, Manulife Financial, Suncor, and Intact Financial. The top 5 dividend payouts corresponds to 32.7% of our June dividend income. Not only it’s great to see that we received dividends from 40 different companies, it’s also great to see that the top 5 payouts only contributed to a small percentage. This is definitely a right step in income diversification.
I highlighted payment from Canadian Natural Resources (CNQ.TO) because it was not an actual quarterly dividend payment. The money received was from the Prairiesky Royalty transaction. But it’s cash payment received from owning a dividend stock nonetheless. 🙂
Compared to June 2015, we saw a YOY growth of 42.8%. As Baby T1.0 would say “HOLY MOLY!” The chart below gives a good overview of our monthly dividend earned on a year over year basis since 2011. Very cool to see that June 2016 was a new record, only $0.67 off from the $1,100 milestone.
In June we saw a few companies in our dividend portfolio increasing their dividend payouts. National Bank (NA.TO) increased dividend payout by 1.85%, Target (TGT) increased dividend payout by 7.14%, and GIS increased dividend payout by 4.35%. Thanks to these payout increases, our forward dividend income has increased by $17.76.
Thanks to DRIP, we were able to purchase additional 16 shares of various dividend paying stocks, which in term increased our forward looking dividend by $18.02.
Due to organic dividend growth and DRIP, our forward dividend income increased by $35.78. While $35.78 may not seem significant to some readers, I’m jumping up and down celebrating this small success. Why? Because given a 3% yield, this means we didn’t have to invest $1,192.67 to result such increase in our dividend income. The $35.78 will compound itself and increases our future dividend income. This is really the best example of getting paid for doing absolutely nothing at all!
So far in 2016 we’ve received a total of $5,956.98 in dividend income. Considering that we’re half way through 2016 already, we are definitely behind progress on our $13,000 annual dividend goal. Given the $13,000 dividend income goal, we should be at $6,500 dividend received already. That’s a difference of $543.02 or ~8% behind target. We will see if we can make up this difference moving forward.
I have been thinking lately whether it makes sense to utilize options to result more passive income or not. Although I have read some books on options before, the concept of doing calls and puts is still a bit foreign to me. I’ve seen a few dividend growth investors utilizing options to generate more passive income, I would love to hear some feedback.
Dear readers, how was your June dividend income?