Dividend Income – March 2016 Update

It’s hard to believe that Baby T2.0 is already 2 weeks old. Time sure went by with a blink of an eye. It’s good that she’s eating and sleeping quite well for a 2 week old. Mrs. T and I are trying to get as much sleep as we can but between waking up at night for diaper changes and feeds as well as Baby T1.0 waking up around 6:30AM every morning, we’re definitely sleep deprived. I have to say though, things are certainly a lot easier this time around, considering that we’re not on the crazy 3 hour feeding schedule and doing feed on demand instead.

It was comforting to know that our dividend portfolio was generating income for us, considering I took a 1 week unpaid parental leave at work in March. Gotta love having our money working hard for us instead of us needing to work hard for money. 🙂

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 as all.

Dividend Income
In March, we received dividend from the following companies:

Pure Industrial REIT (AAR.UN)
BP PLC (BP)
Care Capital Properties (CCP)
Corus Entertainment (CJR.B)
Canadian National Railway (CNR.TO)
ConocoPhillips (COP)
Chevron (CVX)
Dream Office REIT (D.UN)
Dream Global REIT (DRG.UN)
Enbridge (ENB.TO)
Evertz Technologies (ET.TO)
Fortis (FTS.TO)
H&R REIT (HR.UN)
Intact Financial (IFC.TO)
Intel (INTC)
Inter Pipeline (IPL.TO)
Johnson & Johnson (JNJ)
KEG Income Trust (KEG.UN)
Liquor Store (LIQ.TO)
McDonald’s (MCD)
Manulife Financial (MFC.TO)
Magna International (MG.TO)
MCAN Mortgage Corp (MKP.TO)
Qualcomm (QCOM)
Royal Dutch Shell (RDS.B)
RioCan REIT (REI.UN)
Saputo (SAP.TO)
Suncor (SU.TO)
Target (TGT)
Unilever PLC (UL)
Ventas (VTR)
Vanguard CAN All Cap (VCN.TO)
Vanguard All-World Ex Canada (VXC.TO)
WestJet (WJA.TO)
Waste Management (WM)

Phew, that’s a long list!

In March 2016, we received a total of $952.77 in dividend income from 33 companies and 2 ETF index funds. Of the $952.77 received, $303.71 was in US dollar and $649.06 was in Canadian dollar. It’s encouraging to see that our dividend income was so diversified this past month and over 30% of the income was in US 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.

div income March 2016

To be honest, I was a little disappointed that we didn’t receive over $1,000 in dividend for the month of March. Only $47.23 short, SO CLOSE!!! The reality is, we probably would have made this cool milestone two months in a row if it weren’t for the dividend cuts from Dream Office and ConocoPhillips. Yes these dividend cuts are definitely hurting our monthly dividend income level. But on the positive side, at least these companies are cutting their dividends rather than suspending dividends completely. There’s always hope that both companies will increase their dividend payout in the near future once oil price recovers.

Dividend Growth
Compared to March 2015, we saw a YOY growth of 22.85%. That’s a great YOY growth number despite all the dividend cuts & freezes we’ve encountered in the last half year, contributed by the low crude oil price.

If you are wondering, our dividend growth is contributed by three things – investing fresh capital, purchasing of additional shares through dividend reinvesting plan (DRIP), and increasing of individual stock’s organic dividend payout each year. We believe in utilizing the power of all of these three components to grow our dividend income exponentially.

Thanks to DRIP, we were able to purchase additional 15 shares of various dividend paying stocks, which in term increased our annual dividend by $16.41. I think this is pretty significant because given a 3% yield, that meant we didn’t have to invest $547. When we do save $547, we can invest this money to generate additional $16.41 at 3% yield. Pretty cool stuff if you think about it.

Moving Forward
So far in 2016 we’ve received a total of $2,809.08 in dividend income. If we use a $20 per hour wage for calculation, that means we didn’t have to actively work for over 140 hours so far this year. This corresponds to 17.5 days of work. That’s 17.5 days of freedom and setting our own schedules.

Considering that our 2016 dividend income goal is $13,000, we’re behind schedule by $440.92. That’s a lot of money to make up. As you can see, the dividend cuts that we’ve encountered are putting a hurdle on this goal. We’ll have to try very hard to save and use the money to buy more dividend paying stocks. Hopefully we can recover and achieve this ambiguous goal by end of this year.

Dear readers, how was your March dividend income?

Written by Tawcan
Hi I’m Bob from Vancouver Canada, I am working toward joyful life and financial independence through frugal living, dividend investing, passive income generation, life balance, and self-improvement. This blog is my way to chronicle my journey and share my stories and thoughts along the way. Stay in touch on Facebook and Twitter. Or sign up via Newsletter