March was a special month for Mrs. T and I as Baby T2.0 turned 2! I will always remember her relatively quick birth at home (planned), holding her for the very first time, clamping and cutting her umbilical cord, and how sweet Baby T1.0 was to his little sister. We celebrated Baby T2.0’s birthday with family and friends and had a great time. It is hard to believe our little girl is 2 years old already. She is no longer a baby but a little girl with her own unique personality. She is starting to speak more and more sentences of 2 words (and sometimes 3 or 4 words). It is also really cool that she can understand English, Mandarin, and Danish and can speak words from all 3 languages. We believe her amazing language skills have a lot to do with Baby T1.0 talking to her all the time and teaching her new words. It is amazing how quickly time flies. I need to constantly remind myself to enjoy the present moment when both kids are still young. Because with a blink of an eye, they will be teenagers!
And hopefully with a blink of an eye, we will have enough passive income to cover our living expenses. We can then declare ourselves as financially independent!
March Dividend Income
In March we received dividend income from the following companies:
- Pure Industrial REIT (AAR.UN)
- Brookfield Renewable (BEP.UN)
- BP (BP)
- Canadian National Railway (CNR.TO)
- ConocoPhillips (COP)
- Costco (COST)
- Canadian Tire (CTC.A)
- Canadian Utilities (CU.TO)
- Chevron (CVX)
- Dream Office REIT (D.UN)
- Dream Global REIT (DRG.UN)
- Dream Industrial REIT (DIR.UN)
- Enbridge (ENB.TO)
- Enbridge Income Trust (ENF.TO)
- Evertz Technologies (ET.TO)
- Fortis (FTS.TO)
- Hydro One (H.TO)
- High Liner Foods (HLF.TO)
- H&R REIT (HR.UN)
- Intact Financial (IFC.TO)
- Intel (INTC)
- Inter Pipeline (IPL.TO)
- Johnson & Johnson (JNJ)
- KEG Income Trust (KEG.UN)
- Magellan Aerospace Corp (MAL.TO)
- 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)
- RioCan (REI.UN)
- Saputo (SAP.TO)
- SmartCentres REIT (SRU.UN)
- Suncor (SU.TO)
- Target (TGT)
- Unilever plc (UL)
- Visa (V)
- WestJet (WJA.TO)
- Waste Management (WM)
- Exco Technologies (XTC.TO)
Can you believe that we received 42 different paycheques in March 2018? Talk about income diversification! The 42 different paycheques added up to $1,440.82. Another all-time record! For the first 3 months of 2018, we have broken our all-time record each month! This is absolutely amazing stuff! Can we continue this trend in April? I guess we will have to wait and see.
Out of the $1,440.82 received, $330.07 was in USD and $1,110.75 was in CAD. This was roughly a 25-75 split between dividend received in USD and 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 March 2018 were Intact Financial, Suncor, Chevron, Manulife Financial, and Enbridge. Dividend payouts from these 5 companies accounted for 35.6% of our February dividend income, or $513.56.
Dividend Income Breakdown
We hold our dividend stocks in taxable accounts, RRSPs, and TFSAs. Every year, we maximize tax-advantaged accounts first before investing in taxable accounts.
For March 2018 dividend income, here’s the breakdown of the different accounts:
- Taxable: $436.85 or 30.3%
- RRSPs: $472.27 or 32.8%
- TFSAs: $531.70 or 36.9%
Effectively, only 30.3% of our March dividend income was taxable. We constructed our taxable accounts so we only receive from stocks that pay out eligible dividend income. Since we plan to live off dividend income when we are financially independent, we want to construct our portfolio to be as tax efficient as possible. This way, we can minimize income tax during financial independence.
Compared to March 2017, we saw a respectable YOY growth of 18.66%. This is the highest growth parameter in 2018 so far! Given we had a record month, this shouldn’t come as a surprise. Our target is to continue having the YOY growth matrix to be above 10% for the rest of the year.
After a stellar February where we saw 17 dividend increase announcements and increased our forward annual dividend income by $430.34, March was a relatively quiet month. The only stock in our portfolio that announced dividend increase was Qualcomm.
- Qualcomm raised its dividend by 8.77% to $0.62 per share.
But a raise is a raise so I am happy to see this announcement.
Dividend Stock Transaction
Stock market volatility continued in March. Just like we did in January and February, we took advantage of the volatility and added some shares to our existing Enbridge position.
- Purchased 185 shares of Enbridge (ENB.TO)
The purchase increased our annual dividend income by $496.54.
Enbridge share price has been on a significant decline lately and I believe this a good buying opportunity. Since our purchase, Enbridge share price continued to tumble. Enbridge has a lot of debt right now but I believe the company is still quite strong as a long-term holding. Considering people will continue to use oil and natural gas for many years to come, there will always be a need to transport these natural resources from point A to point B. Enbridge will continue to provide this essential transportation service and get paid for doing so.
The stock market is seeing a lot of weaknesses in the first few weeks of April. If you haven’t heard, the USA and China have imposed tariffs on each other’s products. This has created a lot of uncertainties and turbulence. To me, I am loving the uncertainties and turbulence, because this only creates more buying opportunities. We plan to continue saving and investing whenever we can and increase the value of our dividend portfolio.
Given the recent stock market weakness, we might consider purchasing more shares of Emera, Fortis, and Canadian Utilities. We might also consider some REITs in the medical and hotel sectors. Canadian Banks might also be another sector we might consider purchasing.
So far in 2018, we have received a total of $4,133.71 in dividend income. At $20 per hour wage, we have saved ourselves over 206 hours or over 25 working days. That’s an equivalent of 5 weeks! Pretty awesome that our dividend portfolio is working hard for us so we don’t have to.
Dear reader, how was your March dividend income?