Another month down, and only one more month to go before 2017 wraps up. It’s hard to believe that Christmas is around the corner and 2018 is less than 3 weeks away. Mrs. T has been putting up a lot of Christmas decorations throughout our house and the past few weekends, she made A LOT of Christmas chocolates.
The chocolates were delicious! I am pretty fortunate to have such an amazing wife that can make so many delicious goodies. I will have to watch out what I eat during the holiday season.
After a lot of travels in the month of October, it was nice to not travel at all in November. This meant I was able to spend more time with Mrs. T, Baby T1.0, and Baby T2.0. It also allowed me to spend more time to work on this blog and making some 2018 plans. I am looking forward to having an even slower December and spending more time with my family.
Anyway, without further ado, here is our November 2017 dividend income update.
November Dividend Income
In November 2017 we received dividend income from 26 companies:
- AbbView (ABV)
- Apple (APPL)
- Pure Industrial REIT (AAR.UN)
- Bank of Montreal (BMO.TO)
- Corus Entertainment (CJR.B)
- Dream Office REIT (D.UN)
- Dream Global REIT (DRG.UN)
- Dream Industrial REIT (DIR.UN)
- Emera (EMA.TO)
- Enbridge Income Trust (ENF.TO)
- General Mills (GIS)
- H&R REIT (HR.UN)
- Inter Pipeline (IPL.TO)
- KEG Income Trust (KEG.UN)
- Metro (MRU.TO)
- National Bank (NA.TO)
- Omega Healthcare (OHI)
- Procter & Gamble (PG)
- Potash (POT.TO)
- Prairiesky Royalty (PSK.TO)
- Royal Bank
- RioCan REIT (REI.UN)
- Sabra Health Care (SBRA)
- Smart REIT (SRU.UN)
- AT&T (T)
- Verizon (VZ)
In total, we received $1,247.57 in dividend income for November 2017. After finally crossing the $1,300 mark back in October 2017, we dropped back down to $1,200 level. Darn it! Hopefully we’ll get over $1,300 in dividend income in December.
Out of the $1,247.57 dividend income that we received in November, $293.26 was in USD and $954.31 was in CAD. This is about a 20-80 split between dividends 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 payout in November 2017 were Bank of Montreal, National Bank, Royal Bank, Omega Healthcare, and Procter & Gamble. The top 5 payout accounted for 59.49% or $742.23 of our November dividend income.
Dividend Income Breakdown
We hold our dividend stocks in taxable accounts, RRSPs, and TFSAs. Every year, we maximize tax-advantage accounts first before investing in taxable accounts.
We do this so we can be as tax efficient as possible. Why pay extra taxes when we can avoid them by utilizing these tax-advantage accounts? It seems like a no brainer to me. This is why I am always shocked to hear people who are investing using taxable accounts when they have tons of RRSP and/or TFSA contribution rooms left.
For November dividend income, the breakdown across the different accounts were:
- Taxable: $309.44 or 24.8%
- RRSPs: $571.15 or 45.78%
- TFSAs: $366.98 or 29.42%
CRA confirmed that the 2018 TFSA contribution limit will remain at $5,500. We have already saved up $11,000 in our high savings account and will transfer this cash to our TFSA’s at the beginning of January 2018 so we can purchase more dividend stocks. Hopefully the stock market will be volatile in January so we can purchase discounted stocks.
Compared to November 2016, we saw a YOY growth of 15.83%. This is one of the lowest YOY numbers in 2017.
I was a bit disappointed to such low YOY growth percentage. I was hoping that we would see another 20% YOY. But one can dream right?
After 11 month, we are averaging 19.45% YOY increase. It will be extremely challenging to hit the 20% mark for the entire year of 2017. Having said that, as our dividend income grows, it becomes increasingly more difficult to maintain a high YOY number. We need to realize this important factor moving forward when we make our annual dividend income goal.
In November a number of stocks that we own in our portfolio announced dividend increase:
- Telus raised its dividend by 2.54% to $0.505 per share
- Inter Pipeline raised its dividend by 3.70% to $0.14 per share
- Canadian Tire raised its dividend by 38.46% to $3.60 per share
- Enbirdge raised its dividend by 10% to $0.671 per share
- Enbridge Income Trust raised its dividend by 10% to $0.1883 per share
With these announcements, our annual dividend income has increased by $101.84. At 3% dividend yield, this is equivalent of adding $3,395 of fresh capital into your dividend portfolio. Needless to say, organic dividend growth is very important.
Dividend Stock Transaction
I briefly mentioned about GE in our October dividend income update. We ended up liquidated all of our GE shares a few days before GE announced the 50% dividend cut (ouch!!!). We ended up with a small loss. Looking back, I should have picked up on the warning signs earlier and liquidated our GE shares earlier. A lesson learned, that’s for sure.
We did, however, picked up 72 Enbridge shares in November. Enbridge share price was dropping like a rock in November. I saw this as a good opportunity to add to our existing Enbridge position.
So far in 2017 we have received a total of $13,556.45 in dividend income. With one more month to go, it is probably unlikely that we’ll end up with over $15,000 in dividend income (we’d need to receive $1,443.55 in dividend income in December). However, I do think we will come very close to $15,000 in dividend income goal.
Dear readers, how was your November dividend income?