December is upon us and that means it’s time for a 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 plan to use dividend income as one of the passive income sources once we reach financial independence, hence we keep a close eye on it.
For me, the November went by very quickly. I was busy at work on the weekdays and I was occupied by various activities on 3 of the available 4 weekends. I spent one of the weekends attending a course, I then spent another weekend in Mt. Baker for a good friend’s bachelor party and good times were had. The last weekend of November was spent traveling from Vancouver to Hong Kong. The 13.5 hour flight to Hong Kong was quicker than I expected. Although I only slept for about an hour on the plane, I wasn’t jet lagged at all. I felt asleep around 10 PM on the night of my arrival then woke up around 7 AM the next morning. I slept just as well for the next few nights too. What’s my trick for no jet lag? Drink lots of water and avoid caffeine and pop while on the plane. With a busy November behind me, I’m looking forward to a more relaxed December. Mrs. T’s family will be coming to Vancouver from the Land of Vikings for Christmas and we are very much looking forward to some family time, hygge, and Christmas celebration.
While I was busy during November, our money was working hard for us, generating more money. This is the exact reason why I love dividend income – we get paid regardless what we’re doing. I see investing in dividend stocks like planting seeds. Each dollar invested is like planting a seed which will grow into a tree and generate fruits (i.e. income) in the near future.
Without further ado, let’s take a look at our November dividend income.
We received dividends from the following companies:
Pure Industrial REIT (AAR.UN)
Bank of Montreal (BMO.TO)
Corus Entertainment (CJR.B)
Canadian Oil Sand (COS.TO)
Dream Office REIT (D.UN)
Dream Global REIT (DRG.UN)
EnergyPlus Corp (ERF.TO)
General Mills (GIS)
H&R REIT (HR.UN)
Inter Pipeline (IPL.TO)
KEG Income Trust (KEG.UN)
Kinder Morgen Inc (KMI)
Liquor Store (LIQ.TO)
National Bank (NA.TO)
Omega Healthcare (OHI)
Procter & Gamble (PG)
RioCan REIT (REI.UN)
Royal Bank (RY.TO)
In November we received a total of $922.68 in dividend income from a total of 22 companies. Of the $922.68 received, $294.65 was in US currency and $628.03 was in Canadian currency. Please note, we use a 1 to 1 currency rate approach, so we do not convert the dividends received in US currency into Canadian currency. We’re doing this to keep the math simple and avoid fluctuations in dividend income over time due to changes in the currency rate.
Compared to November of 2014, we saw a YOY growth of 19.92%. Pretty solid considering the 2014 November dividend income was the 3rd highest amount that we received in 2014. Our dividend growth is contributed by three things – investing fresh capital, enrolling in dividend reinvestment plans (DRIP), and increasing of individual stock’s organic dividend payout each year. In November, I’m extremely pleased to have received dividend income from 22 companies and 14 of these we’re are currently enrolled in DRIP. This means we were able to purchase more than 14 shares of additional stocks (some stocks we DRIPed more than 1 share) throughout this month without paying any commissions. The DRIPed shares will bring in another $44.63 moving forward. Think this is a small amount? With a conservative 3% dividend yield, this means we didn’t have to invest $1,487.67 to generate this additional income.
While many dividend stocks that we own have raised their dividend payout this year and will add over $500 in forward looking dividend, due to low crude oil price, we have also seen a few dividend cuts, including Canadian Oil Sand and recently Kinder Morgen Inc. Unlike some dividend investors though, we don’t immediate sell the dividend stock when there’s a dividend cut or dividend freeze. We typically would analyze the situation and evaluate the stock. If the long term view of the stock remains strong, we’d continue holding the stock and use DRIP (if we are eligible) to purchase more shares to average down our cost basis. Although the 2016 TFSA contribution room has been lowered to $5,500, we have saved sufficient amount to deploy in January to purchase more dividend stocks. The new capital will help increasing our 2016 annual dividend amount. Hopefully we’ll continue to see a strong YOY dividend growth in 2016.
So far this year we’ve received $9,344.29 in dividend income. With one more month to go for 2015, I think we should be able to cross the magical $10,000 annual dividend income mark with some margin. It would have been nice to cross this mark in November or October but we’ll definitely take it. Going from $8,300 in annual dividend income to $10,000 is roughly a 19% YOY growth or about $1,700 in dollar amount. At 3% dividend yield rate, we would have to contribute about $56,667 of fresh capital into our dividend portfolio, assuming no dividend growth came from DRIP or stock’s organic dividend growth. Given the dollar amount, I think we did pretty well so far this year. 🙂
Thank you for reading and for your continued support. How was your November dividend income?