Dividend Income – May 2016 Update

dividend income - I did nothing today and still got paid

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. 🙂

The market has been pretty hot lately. Unfortunately this means that it’s harder and harder finding value dividend stocks. For now, we’re going to continue saving money and deploy cash to purchase dividend stocks when we can find a bargain or two. Given that we’ve purchased over $35,000 worth of dividend stocks so far this year, I think it is OK to slow down a bit on the purchasing front.

For this month’s dividend update, I’m providing slightly more data and different charts. Hopefully readers will appreciate these changes. 🙂

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

Apple (AAPL)
Pure Industrial REIT (AAR.UN)
Bank of Montreal (BMO.TO)
Corus Entertainment (CJR.B)
Dream Office REIT (D.UN)
Dream Global REIT (DRG.UN)
General Mills (GIS)
H&R REIT (HR.UN)
Inter Pipeline (IPL.TO)
KEG Income Trust (KEG.UN)
Kinder Morgan (KMI)
National Bank (NA.TO)
Omega Healthcare (OHI)
Procter & Gamble (PG)
Potash (POT.TO)
RioCan REIT (REI.UN)
Royal Bank (RY.TO)
Starbucks (SBUX)
AT&T (T)
Verizon (VZ)

In May 2016, we received a total of $1,014.84 in dividend income from 20 companies. Of the $1,014.84 received, $268.07 was in US dollar and $746.77 was in Canadian dollar. If the likes of Kinder Morgan, Potash, and Dream Office REIT didn’t cut their dividend payouts, our May dividend income would have been higher. The dividend cuts reduced our dividend income by almost $80. Ouch! 🙁

The top 5 payouts came from Royal Bank, National Bank, Bank of Montreal, Omega Healthcare, and Procter & Gamble, which corresponds to about 64% of our total dividend income. We feel OK with this high percentage given that Royal Bank and Bank of Montreal have been paying dividends since the 1800’s and Protector & Gamble, Omega Healthcare and National Bank have 44, 14, and 6 years of dividend increase streaks respectively.

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.

tawcan-dividend-income-may-2016

Dividend Growth
Compared to May 2015, we saw a YOY growth of 20.2%. A very reputable YOY percentage if you were to ask me. The chart below gives a good overview of our monthly dividend earned on a year over year basis since 2011. It’s definitely nice to see the bars getting longer and longer. 🙂

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 10 shares of various dividend paying stocks, which in term increased our forward looking dividend by $19.92. I think this is pretty significant because given a 3% yield, that meant we didn’t have to invest $664. When we do save $664, we can invest this money to generate additional $19.92 at 3% yield. Pretty cool stuff if you think about it.

The graph also demonstrated that it has taken us a few years to build up our dividend income. Rome wasn’t built in one day, neither should your dividend income.

 

dividend income May 2016

Moving forward
So far in 2016 we’ve received a total of $4,857.65 in dividend income, that’s 37% of our $13,000 annual dividend goal. Pretty solid but it paints the picture that we’re slightly behind in progress (we should be around 41.7%). However, given that we have received over $1,000 three out of five months and have received over $1,000 in dividends for two straight months, I’m extremely happy with our progress. Hopefully we’ll continue this $1k streak in June.

Dear readers, how was your May dividend income?

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46 thoughts on “Dividend Income – May 2016 Update”

  1. “The top 5 payouts ….which corresponds to about 64% of our total dividend income.”

    Concentrate on great Income producers and the results will be the slow and steady growth!

    Keep up the good work.

    Reply

  4. another month with over 1000 dollar in dividends. congrats!
    You are on track! Dividend Increases and a little new capital will smash you yearly goal 🙂

    if you are able, keep on buying those assets. awesome work here.

    best regards

    Reply

  5. A cool grand would be more than enough for a single person to live off of in the right situation. That’s pretty impressive that you didn’t have to lift a finger to get it.

    Reply

  6. Great work and your Blog is Awesome! Your blog, along with other blogs inspired me to fight towards financial freedom. 1880 days left to go for me.

    Reply

  8. Congratulations on a good month.

    I have to agree about the hot market. I have been liquidating a number of high-priced mutual funds but haven’t been able to get the money reinvested (into ETFs and dividend stocks) as I hate buying in when the market has been up so much over the past few weeks.

    Reply

  9. The winning streak continues, that 2011-2016 graphs shows it all. Impressive that you were able to deploy $35K this year in new investments, amazing!

    Reply

  10. Income received this month was just over $3000 . Last years income was $2400 for a 20% increase. Love those dividends and income trusts. Got rid of any company that cut their dividends and re-invested in dividend growth stocks.

    Reply

  11. Hey Tawcan, looks like an awesome month to me, another one over $1,000! This time next year, every single month might be $1K+, that’d be enough to live decently in a lot of countries around the world. Good luck for next month 🙂

    Tristan

    Reply

  12. Awesome results as always. You put up some solid numbers with a very respectable year over year increase despite some nasty cuts. Cuts are part of this game we play. Just stay diversified and these cuts will have minimal impacts. Again, happy to see some great Canadian banks paying you as well. Keep up the good work. Now it’s time for me to change a diaper too!

    Reply

  14. Hi Tawcan,

    Congrats on a fantastic month! Gotta love a 20% increase in income YOY 🙂 It’s interesting that your June numbers are a little lower than the others on average; usually June is one of the higher months.
    Best wishes,
    -DL

    Reply

    • Hi Dividend Life,

      Our June dividend income would have been much higher if a few of the companies didn’t cut their dividend payouts earlier this year/late last year.

      Reply

  15. Great month and very impressive YOY rates. Love the picture 🙂
    We focus on investment property income which rolled in again this month with no effort on our part – its ‘magic’ isn’t it!

    Reply

  16. Tawcan,

    DAYUM! Loving this, killing it, 3 months of $1K + and you are about to make it a total of 4, with 3 in a row. Nice job and don’t sweat the high allocation to a few of the companies, as long as it wasn’t just 1 with 64% coverage! Amazing job and am so pumped for your June. Keep at it!

    -Lanny

    Reply

  23. Another solid month for you! Even with the dividend cuts you were still able to increase YoY by roughly 20%! Not to mention 2 months back to back of $1,000 in dividends must feel pretty awesome. Unless you added June dividend payers it looks like it may be tough to break that $1,000 mark based on your history but I hope you can. Best of luck.

    Reply

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