Dividend Income – June 2017 Update & Mid-Year Review

Summer is finally here in Vancouver! It’s certainly nice to see nothing but sun in the weather forecast for an extended period of time. That is way better than the rainy season we get in Vancouver for the rest of the year. Have you heard about the rain joke about Vancouver?

Vancouver doesn’t rain a whole lot, just twice a week. Once for 3 days, the other time for 4 days.

All the sun means that our garden is growing nicely. We have been harvesting a lot of strawberries, between 3-5 kg (6.6 -11 lbs) every other day! Home-grown organic strawberries taste so much better than store-bought ones. Our home-grown strawberries may look smaller than the ones you see in stores, but they are so much sweeter with more flavors!

Garden looking very green

Kale

Tomatoes are coming!!! 🙂

Carrots, garlic, peas, and pumpkins

Home-grown juicy sweet strawberries. Yum!

The kiddos love picking strawberries and eating them right away. Although in Baby T2.0’s case, she doesn’t quite understand that she should only pick the red ones. Quite often she would pick a completely green strawberry, eat it, then have a yuck face due to sourness.

Baby T1.0 harvesting his carrots. He planted the seeds in the spring.

Baby T2.0 managed to pick a red strawberry

We are also picking some fresh raspberries from the garden every other day. Thanks to having fresh kale, spinach, dill, parsley, carrots, basil, rhubarb, and salad from our garden, we are saving quite a bit of money on grocery. We are also freezing a few things for future consumption.

All these fresh berries and produce mean we are making a lot of yummy food at home too.

What kind of things have we been making?

Strawberry rhubarb and coconut cake!

Home-made pesto

Healthy kale chips

And various dishes from our cookbooks.

Needless to say, we have been busy both in the garden and in the kitchen!

Hold on, this is a monthly dividend update post and not a garden & food update right? Sorry for getting side-tracked. Let’s stay focused and talk about dividend income. 🙂

June Dividend Income

In June 2017 we received dividend income from 46 companies:

  • Pure Industrial REIT (AAR.UN)
  • Brookfield Renewable (BEP.UN)
  • BP (BP)
  • Care Capital Properties (CCP)
  • Corus Entertainment (CJR.B)
  • Canadian National Railway (CNR.TO)
  • ConocoPhillips (COP)
  • Chevron (CVX)
  • Canadian Tire (CTC.A)
  • Dream Office REIT (D.UN)
  • Dream Global REIT (DRG.UN)
  • Dream Industrial REIT (DIR.UN)
  • Enbridge (ENB.TO)
  • Evertz Technologies (ET.TO)
  • Enbridge Income Trust (ENF.TO)
  • Fortis (FTS.TO)
  • Hydro One (H.TO)
  • H&R REIT (HR.UN)
  • High Liner Foods (HLF.TO)
  • Intact Financial (IFC.TO)
  • Intel (INTC)
  • Inter Pipeline (IPL.TO)
  • Johnson & Johnson (JNJ)
  • KEG Income Trust (KEG.UN)
  • McDonald’s (MCD)
  • Manulife Financial (MFC.TO)
  • Magna International (MG.TO)
  • MCAN Mortgage Corp (MKP.TO)
  • Metro (MRU.TO)
  • Prairiesky Royalty (PSK.TO)
  • Qualcomm (QCOM)
  • Royal Dutch Shell (RDS.B)
  • RioCan REIT (REI.UN)
  • Saputo (SAP.TO)
  • Smart REIT (SRU.UN)
  • Suncor (SU.TO)
  • Target (TGT)
  • Unilever plc (UL)
  • Visa (V)
  • Ventas (VTR)
  • Vanguard Can All-Cap (VCN.TO)
  • Vanguard All-World Ex Canada (VXC.TO)
  • WestJet (WJA.TO)
  • Waste Management (WM)
  • Wal-Mart (WMT)
  • Exco Technologies (XTC.TO)

In total we received $1,269.43 in dividend income.

First of all this is an all-time record! Woohoo! Second, it is crazy that we received dividend income from 46 companies! Talk about diversification.

Out of the $1,269.43 dividend income that we received in June, $287.57 was in USD and $981.86 was in CAD. 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 June 2017 were Manulife Financial, Suncor, Enbridge, Cheveron, and Intact Financial. The top 5 payouts accounted for 31.55% of our June dividend income.

Dividend Growth

Despite having a record dividend income month, we saw a lower than usual YOY growth rate. At 15.47%, this is the lowest YOY growth rate so far in 2017. Obviously as we get higher dividend income, it becomes increasingly more difficult to get more than 15% YOY growth. I have mentioned this fact numerous times already.

At the mid-year mark, we are tracking an overall 20.52% YOY growth rate. Still very respectable but we are starting to see this number dipping lower each month.

Dividend Increases

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

  • Target raised its dividend by 3.3% to $0.62 per share
  • General Mills raised its dividend by 2.08% to $0.49 per share

These announcements have increased our annual dividend income by $5.2. Not a great month when it comes to dividend increases but an increase is better than no increase at all.

Dividend Stock Transactions

In June we made perhaps some controversial stock transactions.

We liquidated all of our positions in

  • Kinder Morgan Inc (KMI)
  • Royal Dutch Shell (RDS.B)

With the proceeds from these two interactions and some added US cash, we then purchased

  • 25 shares of Costco (COST)

As I stated in the post, I don’t feel as confident with the oil sector. While KMI is a pipeline company rather than an oil-producing company, I simply believe that our money is better off invested somewhere else. I like Costco’s business model and believe they will continue to grow in the future.

The market has been quite volatile the last few weeks. We are monitoring a few stocks and see whether to pull the buy trigger or not. It is nice to have some cash reserve available to pull the buy trigger whenever there is a buy opportunity.

2017 Mid-Year Review

With half of 2017 is in the books, it is time to do a mid-year review. So far in 2017 we have received $7,156.76 in dividend income or $1,192.79 per month. If we receive the same amount for the rest of the year, that would result in dividend income of $14,313.52 for 2017. This is below our goal of getting $15,000 for the year and indicates that we have some work to do. Having said that, as we continue adding new capital in our portfolio, I strongly believe that our 2H 2017 dividend income will be higher than 1H.

At an hourly wage of $40 ($83,200 annually), this means we have saved ourselves almost 179 hours of work. This corresponds to 22 days or 4 weeks of work. By having our money working hard for us, we were able to save ourselves some time. Gotta love that!

Previously I did an analysis on our expenses after 5 months. Based on the analysis, we are spending $3,844.83 per month. So at $1,192.79 average monthly dividend income, the dividend income can cover 31% of our monthly expenses. Clearly we are still ways away from reaching financial independence.

So where does that leave us?

We will continue executing our dividend growth investing strategy by:

In addition, we need to continue tracking our expenses and see what we can optimize and reduce. We are also trying to side hustle more to bring home additional income.

Summary

June was an excellent month. It is always nice to have a record-setting dividend income month with money coming from so many different sources.

Since we liquidated a couple of positions and added a stock with a lower yield, we need to purchase more stocks in the future to make up for the difference and continue the dividend income growth.

Dear readers, how was your June dividend income?

 

Get update via email:

You Might Also Like

47 Comments

  • Reply
    Lance @ My Strategic Dollar
    July 10, 2017 at 9:40 am

    Awesome post! Incredible that you’re generating this passive income and helping you live more freely.

    • Reply
      Tawcan
      July 10, 2017 at 1:56 pm

      Thank you Lance. Hoping one day that our passive income exceeds our expenses.

  • Reply
    DivHut
    July 10, 2017 at 10:09 am

    Forget the AMZN/WFM marriage. Looks like you can open your own organic, farm to table grocery store with that amazing bounty. Your garden really does look amazing. I can only imagine how fresh and real everything tastes. Awesome June for you as well. So many different companies yielding a four figure month with a double digit year over year gain. You are doing something right. Keep up the good work!

    • Reply
      Tawcan
      July 10, 2017 at 1:57 pm

      Haha maybe we should consider open a farom to table grocery store. 😀

  • Reply
    Ms. Frugal Asian Finance
    July 10, 2017 at 10:10 am

    Haha I love the Vancouver joke! I didn’t know it rains so much in the city. I’ve also been enjoying the summer so far. It’s great to see the sun and enjoy summer activities.

    I seriously wish I could just replicate your garden and put it in our backyard. My MIL has been trying to grow green onions, garlic and other plants in our backyard, but the progress has been slow so far -_-

    • Reply
      Tawcan
      July 10, 2017 at 1:58 pm

      We do a lot of work with the soil, putting compost and other nutrients every spring. It also helps to rotate the crops around the planting area.

  • Reply
    Pollie
    July 10, 2017 at 10:57 am

    Congrats on your terrific month. Always nice to set a new record.
    And your garden looks great.

    Cheers

    Pollie

    • Reply
      Tawcan
      July 10, 2017 at 1:58 pm

      Thanks Pollie, appreciate your kind words.

  • Reply
    DivGuy
    July 10, 2017 at 11:07 am

    Wow! that’s quite a garden. We are working on building one like it next year. Don’t worry about Vancouver weather, we have half your rain in Quebec, but 100 times your snow 😉 hahaha!
    Congrats on the strong dividend income!

    • Reply
      Tawcan
      July 10, 2017 at 2:00 pm

      I’ll take rain over snow. :p

      It’s really nice to have a vegetable garden for sure.

  • Reply
    catfishwizard
    July 10, 2017 at 11:25 am

    Solid metaphor: garden and income both growing very well.

    • Reply
      Tawcan
      July 10, 2017 at 2:00 pm

      Haha love your metaphor.

  • Reply
    Amber tree
    July 10, 2017 at 11:39 am

    That is a juice green garden you have. Keep up the good work. We also grow vegetables ourselves, more as a learning tool for the kids. I hope one day our raspberries will be really a lot!

    And nice dividend month as well. All time highs are great.

    • Reply
      Tawcan
      July 10, 2017 at 2:01 pm

      Thank you. We don’t have a lot of raspberries yet, certainly not as many when compared to what my parents’ yard is yielding.

  • Reply
    Mr. Tako
    July 10, 2017 at 11:46 am

    Love all the garden pictures Tawcan! It’s really doing great!

    Nice dividend growth too! 15% is pretty good! I’ll be lucky if I can manage 10% growth this year! It gets a lot tougher to grow divvy income without constantly adding new capital.

    • Reply
      Tawcan
      July 10, 2017 at 2:02 pm

      Your dividend income is significantly higher than ours so 10% YOY growth is really rock solid for you. It’s definitely gets tougher to grow dividend income without adding new capital at your dividend income level.

  • Reply
    American Dividend Dream
    July 10, 2017 at 11:54 am

    That garden looks incredible. I am quite jealous as my wife and I are struggling with ours this year. We tried planting a few things in different places throughout the yard and they didnt turn out as planned. Oh well.

    As for the dividend income, that is incredible!! Very inspiring

    ADD

    • Reply
      Tawcan
      July 10, 2017 at 2:03 pm

      Mrs. T grew up on a farm so that definitely helped. She also did a lot of research in terms what to plant and where to plant. Lots of work involved that’s for sure. 🙂

  • Reply
    Dividends Down Under
    July 10, 2017 at 4:11 pm

    Haha, nice joke about the rain Tawcan. Wow you guys have an amazing garden and you are reaping the healthy benefits right now, although that doesn’t include all of the (good exercise) effort to create it I suppose. Anyway, great looking produce!

    Nice job on the dividend income as always, great growth 🙂

    Mr DDU

    • Reply
      Tawcan
      July 11, 2017 at 9:40 am

      I love that rain joke haha. It does take a bit of time and effort to look after the garden. Good point.

  • Reply
    Tim Kim @ Tub of Cash
    July 10, 2017 at 5:34 pm

    Nice Bob! Very impressive garden, and an even more impressive passive income! Not a big veggies eater (I should know better, I’m a personal trainer, go figure), but jeez you guys are running the full gamut over there. Eating produce that you cultivated from your own land is gonna reap some dividends as well, in the form of your health and well being, for your entire family!

    • Reply
      Tawcan
      July 11, 2017 at 9:40 am

      We aren’t vegetarians but lately we have been eating more and more veggies. I think that’s a good thing. 🙂

  • Reply
    wealth from thirty
    July 10, 2017 at 6:22 pm

    The garden is going gang busters and that rhubarb and raspberry pie looked delicious. If you haven’t already, try a little yellow or purple chard – it’s fantastic in a stir fry, and grows in nicely. A very acceptable dividend payout for the month too, though I know you’re looking to increase it, covering 30% of your expenses is great. No dividends for me in June, only a matter of time though!

    • Reply
      Tawcan
      July 11, 2017 at 9:41 am

      Cool will have to try yellow or purple chard next time we do stir fry. Thanks for the suggestion.

  • Reply
    Passivecanadianincome
    July 10, 2017 at 7:01 pm

    Great garden unfortunately our siding is still in process so we didnt plant anything this year. Wow great income and 42 companies dam!! haha keep it up

    • Reply
      Tawcan
      July 11, 2017 at 9:41 am

      It definitely took us a number of hours to plant all these in the spring. But I guess you can say the hard work paid off.

  • Reply
    A Frugal Family's Journey
    July 10, 2017 at 9:35 pm

    Wow! Way to go Tawcan. 46 companies and almost $1,300 in dividend income is really awesome! Looking at your chart, which goes back to 2011, you’ve manage to grow your dividends month after month, year after year! Looking forward to seeing you finish up the year strong.

    Best wishes and continued success my friend. AFFJ

    • Reply
      Tawcan
      July 11, 2017 at 9:42 am

      Thanks AFFJ. Didn’t realize we were closer to $1,300 in dividend income this month than $1,200. Maybe we’ll hit $1,300 later this year. That’d be pretty awesome.

  • Reply
    GYM
    July 10, 2017 at 9:56 pm

    Your garden is amazing! I just have green onions on my patio. Haha. I know what you mean about the strawberries, I went picking recently and the strawberries are small but they taste so much sweeter than what you would get in a plastic carton at the grocery store, even though they are triple in size. My dividend portfolio pales in comparison to yours but this month was a $800+ month which is pretty good for me!

    • Reply
      Tawcan
      July 11, 2017 at 9:43 am

      We are looking forward to fresh tomatoes, I have to say store-bought ones just don’t taste as good.

      Nicely done on $800+ dividend this past month.

  • Reply
    Investment Hunting
    July 10, 2017 at 10:26 pm

    Congrats on the fantastic dividend income results. The garden is awesome. You’re putting that greenhouse to good use. Enjoy the summer.

    • Reply
      Tawcan
      July 11, 2017 at 9:43 am

      Thanks, definitely enjoying the summer. Hope you’re doing the same thing too.

  • Reply
    John R
    July 11, 2017 at 7:07 am

    Really nice garden as well as the half year report accumulation of dividends which I’m guessing will end the year around $14,000 total?

    On your portfolio of dividend income, would that dividend income be for ‘just’ both you & your wife, and is the dividend income all inclusive combined in registered as well as non-registered accounts?

    Does the ‘dividend income include that of other family members, friends etc that you may also be money managing for?

    Do you presently have any other ‘passive income streams’ beside you & your wife’s side business, perhaps rental/income property?

    • Reply
      Tawcan
      July 11, 2017 at 9:44 am

      We are aiming to hit $15,000 so a bit of work still. The dividend income is summary from both mine and my wife’s accounts. Both registered and non-registered. We don’t manage for other family members or friends.

      The other income streams are semi-passive and we don’t disclose those on the blog.

  • Reply
    Team CF
    July 11, 2017 at 12:39 pm

    So you are now harvesting from the garden and from your dividend stocks, and both yields are great! Well done mate.

    • Reply
      Tawcan
      July 11, 2017 at 3:05 pm

      Thanks Team CF. Have to say, I love harvesting from the garden and from dividend stocks

  • Reply
    MrSLM
    July 11, 2017 at 5:36 pm

    Wow nice job on that garden harvest, love fresh strawberries. Your return this month was very impressive as well 🙂

    • Reply
      Tawcan
      July 11, 2017 at 9:06 pm

      Thanks MrSLM. Fresh strawberries are pretty amazing. I’d love to have a home gym like you though.

  • Reply
    Dividend Diplomats
    July 12, 2017 at 4:46 am

    Tawcan. Amazing dividends and amazing haul from the garden. It looks delicious. I’m trying to think of a good gardening/dividend pun, but I can’t quite put one together. Regardless, congrats on the great month and I look forward to seeing what the second half of the year has in store for you.

    Bert

    • Reply
      Tawcan
      July 13, 2017 at 11:01 am

      Haha you gotta work harder for a good gardening/dividend pun. :p

  • Reply
    Oldster
    July 12, 2017 at 1:14 pm

    Enjoyable read. Loved the garden pics. The veggies and berries look delicious. And congrats on the dividend income growth. That is awesome. Looks like you are well on your way to FI. You and your family are a great example of what one can do with proper amounts of education and motivation. I’ll enjoy watching your journey.

    Oldster

    • Reply
      Tawcan
      July 13, 2017 at 11:02 am

      Thank you Oldster for your kind words. Education and motivation go a long way. 🙂

  • Reply
    Weekend Reading – Budgets suck, higher rates, safe stocks, Robos and #money stuff - My Own Advisor
    July 15, 2017 at 4:57 am

    […] Tawcan posted his dividend income update and mid-year review.  Like I mentioned above I have to post my June update soon – stay tuned.  In the meantime, check out our progress from this report. […]

  • Reply
    Dividend Portfolio
    July 16, 2017 at 11:04 am

    Wow. Dividend increases all around. Year-to-Year has seen double-digit increases starting in January. I like the layout of your report Tawcan. Also, the garden pictures were great. Makes me want to eat a strawberry right now.

    • Reply
      Tawcan
      July 17, 2017 at 9:55 am

      Thank you Dividend Portfolio. Have tweaked a bit on how I reported our dividend income over time and I like the current format a lot.

  • Reply
    Amimakingcents
    July 30, 2017 at 8:39 am

    Such impressive dividend income and garden! Do you have any problems with deer, squirrels, rabbits or insects in you garden? We tried a couple of years to grow tomatoes and strawberries, but couldn’t keep the animals away. It became such a losing battle, we gave up. What are we doing wrong? .

    • Reply
      Tawcan
      July 31, 2017 at 8:05 pm

      Luckily we don’t have any animals or insects problems. We don’t live by a forest so wild animals aren’t an issue.

    Leave a Reply