Well, it seems that the market volatility continued throughout the month of November. The TSX Composite Index started at 15,150.15 on Nov 1 and finished the month at 15,197.82, barely any gains at all. In the US, the Dow Jones Average started the month at 25,380.74 and finished the month at 25,538.46, a gain of 0.6%, barely anything as well. With 2019 around the corner and the new TFSA contributions available on Jan 1, I am praying every day that the market will see a major dip in early January to allow us to deploy $12,000 and purchase some stocks on serious discount.
Oh, I sure hope that happens!
With Christmas a few weeks away, we have been busy prepare for this big holiday. Baby T1.0 is extremely excited about Christmas, he has been making cards and gits to give out to everyone he knows. Anyone else is excited about Christmas?
Anyway, back on topic. Let’s talk about November dividend income from a fellow Canadian dividend growth investor, shall we?
November Dividend Income
In November we received dividends from the following companies:
- Apple (APPL)
- AbbView (ABV)
- Bank of Montreal (BMO.TO)
- Costco (COST)
- 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)
- Laurentian Bank (LB.TO)
- Metro (MRU.TO)
- National Bank (NA.TO)
- Omega Healthcare (OHI)
- Procter & Gamble (PG)
- Prairiesky Royalty (PSK.TO)
- RioCan (REI.UN)
- Royal Bank (RY.TO)
- Starbucks (SBUX)
- SmartCentres REIT (SRU.UN)
- AT&T (T)
- Verizon (VZ)
In total, we received 25 pay cheques that added up to $1586.54. Although we didn’t receive over $1,600 in dividend income like what we did in September and October, I was still very pleased with the result. This marked the 32nd straight time that we received over 4 digits in dividend income. Looking at our dividend history, I don’t think that streak is going to end any time soon! By pure coincidence, somehow our monthly dividend income doesn’t fluctuate all that much at all. I guess this happened because we had a mixture of monthly and quarterly paying stocks. Somehow the total doesn’t fluctuate too much month to month.
In November we received $249.27 in USD and $1337.27 in CAD. That’s about a 15-85 split between the two currencies. Ideally, we would like to invest in more US dividend-paying stocks so we could receive a higher dividend amount in US currency each month. However, with the Canadian dollar so weak, I am not sure it makes sense to convert Canadian dollar to US dollar and purchase US dividend-paying stocks. For now, we may just continue collecting dividends in US currency and wait till we have over $1,000 before we deploy the cash.
Please note, we use a 1 to 1 currency rate approach. We do not convert dividends received in USD to CAD. We are ignoring the 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 Nov 2018 came from Omega Healthcare, Royal Bank, Bank of Montreal, Emera, and National Bank (not in order). Dividend payouts from these 5 companies accounted for 57.7% of our November dividend income, or $915.75.
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. This is exactly why we have $12,000 lined up ready to deploy in early January.
For now, we only hold US dividend-paying stocks in RRSP to avoid paying the 15% withholding tax. If we do eventually run out of RRSP room, then we may look at investing US dividend-paying stocks in taxable accounts. Yes, we would get hit by the 15% withholding tax but we get that back as a foreign tax credit.
For the Nov 2018 dividend income, here’s the breakdown of the different accounts:
- Taxable: $368.23
- RRSPs: $725.19
- TFSAs: $493.12
Dividend Growth
Compared to Nov 2017, we saw a YOY growth of 21.37%. That’s the 3rd highest YOY growth number we’ve seen so far in 2018. In other words, a fantastic result! I’m extremely happy to see such a high number.
To be honest, I’m a little surprised that we have been able to stay above 15% throughout the year except for the month of February. But given that we have invested over $50,000 so far in 2018, maybe I’m just being too naive.
Dividend Increases
In November, we saw a number of stocks in our dividend portfolio announced dividend payout increase:
- AbbView raised its dividend by 11.46% to $1.07 per share.
- Manulife raised its dividend by 14% to $0.25 per share.
- Telus raised its dividend by 3.8% to $0.545 per share.
- Canadian Tire raised its dividend by 15.3% to $1.04 per share.
- Nutrien raised its dividend by 7.5% to $0.43 per share.
- Inter Pipeline raised its dividend by 1.8% to $0.1425 per share.
I always jump up and down whenever I hear a dividend payout increase. To see 6 dividend increases in a month is absolutely fantastic. What’s even more fantastic is that all these raises have increased our annual dividend income by $117.97. This means we are getting a raise without having to do anything extra. No additional work and no performance review. I love it! At 4% dividend yield rate, it also means not needing to invest $2945.25 of fresh capital.
Dividend Stock Transactions
We only made a small transaction in November and purchased 14 shares of TD. This purchase added $37.52 toward our annual dividend income.
We bought more TD shares to take advantage of the current price drops seen in the Canadian banking sector. We will continue to monitor this sector to see if we can add more bank shares in our portfolio.
Conclusion
With one more month to go in 2018, we have received a total of $16,899.33 in dividend income. Given that we have received over $1,500 in the last 6 months, it is safe to assume that we should receive over $1,500 in dividend income in December. This should put us over $18,000 in dividend income for the entire year, an accomplishment to our $18,000 in annual dividend goal!
However, I’m not quite ready to call it “mission accomplished” just quite yet. We need to wait till December wraps up and tally up our December dividend income.
Dear readers, how was your November dividend income?
Hi TAWCAN
Impressive increase. Are u not scared its maybe time to save up some money for corection?
I mean it cant go on for ever up like it has been doing..
Hope the best for 2019
We’ve been busy saving money so we can take advantage if a correction comes. 🙂
Man, you’re killing it with the steady YoY increases and even more interesting to note is the relatively consistent month-to-month dividend income, I don’t recall whether you’ve built your portfolio with this intent or not, perhaps so? In any event, it is impressive!
Thanks, the relatively consistent month-to-month dividend income came as a pure coincidence.
Hi Bob
Would you mine to share your experience to choose broker you’re using to trade stock?
I find out that the trading fee is hurting every investor.
Happy Season’s Greetings
When I started trading I was using TD Waterhouse but the $9.99 fees were pretty high. Later on, I found Questrade and thought the $4.95 commission fees were more reasonable. Now we trade mostly with Questrade.
Great month look at those steaks of 4 digits wow. We share 6 companies this month all american. Keep it up
Thanks Doug.
I love the consistency. $18,000 in income this year is amazing, the growth of your dividend payments is truly impressive and great motivation for others. You are killing it and on your way to FI.
I’m going to look into a few more Canadian companies, I currently only hold TD. I also see it as a buy, most banks have been hit hard lately. With the recent volatility, there’s some good deals to be had for sure.
AAI
Thank you Brent. Prices for the Canadian banks have been lowered in the last little while, might be a good idea to purchase some shares to add your exposure to Canadian companies.
Tawcan –
Real nice man! Also – sick gingerbread house. You’ll be pumping that chest – destroying that mission, after December – to which I am calling a MONSTER month of divvy income! Also – that’s serious deployment of capital, and it’s hard to see how you do so much – but that has occurred due to consistency and dedication – it’s now secondhand nature to invest.
-Lanny
Thanks Lanny. We’ve pretty much put DGI on autopilot now. As you said, it’s now secondhand nature for us. 🙂
Comparing 2011 to 2018 is just … well wow. Could you imagine a 20 year old being as strict to retirement goals as you have been. Well that would be one retired and happy 30 year old
Yea it’s pretty mindblowing. Wish we could have started DGI earlier but I guess that’s everyone’s wish. 🙂
Great work Tawcan!!! That’s why I love Dividend Investing, it’s so exciting to see these distribution grow in your account!! I think that’s one of the psychological benefits of dividend investing, during a down market or market dips too, you’re still getting paid every month. And, you know you can buy great stocks at a discount!
Looking forward to seeing how you deploy the $12,000.
Ernest
Hi Earnest,
Thank you. Getting paid while the market is down is definitely a benefit for DGI.
Love the consistency that you guys have on a month to month basis, as that will make things nice later on in life when you begin to look at living off of dividends (assuming you choose to do so). Great work, and I too am hoping for a dip to add more in the new year.
Hi DivvyDay,
Thank you, we are a bit surprised with the consistency too. As I said, it wasn’t by design. 🙂
Let’s keep hoping for a dip in the new year.
Just shy of $1600 is still very impressive when talking about passive income. As usual, you have a who’s who list of quality dividend payers sending you cash last month. I see you have T and VZ in the mix while I’m still long just T. I still am considering adding more to that stock as it’s still a very small part of my overall portfolio. The reality is that there are many other choices to consider as prices have fallen hard. Names like MO, even dogs like KHC and GIS might deserve a look at current levels. Great job!
We got VZ because of the Vodafone deal a while ago. Haven’t actually bought any VZ. Thinking about adding more T and VZ but we’ll see. With the recent price drops, there are a lot of interesting looking names out there. Just need more cash so we can buy them all haha.
great going – I’d really like to know when you deploy that $12,000 🙂 –
I guess you’ll have to come back in Jan/Feb to find out. 😉
Congrats on a fantastic month! Gotta love four-digits! Like you, I am also hoping for an early January market dip for some good buys. Looks like you will crack the $18K, that is super impressive! Keep up the great work! 🙂
Thank you My Dividend Dynasty. Let’s keep hoping for an early Jan market dip for some good buys.
Looking good Bob! Your dividend growth is always impressive! Unfortunately I’m stuck behind the law of large numbers. 🙁
Thanks Mr. Tako. We will eventually run into the law of large numbers too. But I suppose it’s a good thing when that happens. 😉
just awesome Bob.
congrats on contining throwing down these great yr over yr numbers.
Also congrats on all the new raises. Surely you will hit your goal of 18k. very impressive…
keep it up
Thanks Passivecanadianincome. 🙂