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?
38 thoughts on “Dividend Income – November 2015 Update”
Wow, almost touched the $1,000. As someone who has just started investing in dividend growth stocks, this is really motivational as it shows these types of numbers can be reached.
Loving the portfolio composition. Some really good solid companies in there.
Tawcan! YES! You are about to cross $10k in one year. That’s amazing; As Lanny said right above me, we are still digesting the KMI event. At the end, just remember they are one of the largest pipeline companies in an entry that has high barriers to entry. The dividend cut sucked, don’t get me wrong, but it seems like it was the right and necessary move that had to be made. Management/the board had to make a tough decision and they didn’t shy away from it, especially considering that the cut exceed what many were predicting. So I am not planning on dumping the company anytime soon.
Regardless, your portfolio is humming along now and I am extrememly impressed with the dividend snowball you have been able to put together. Keep up the amazing work and let’s finish strong in 2015!
Dividend cut sucked but sometimes companies need to do that to grow in the long term. I don’t plan on dumping KMI anytime soon.
C R U S H I N G it. This is awesome – I know we all are experiencing this KMI event – I think in my eyes they have a monster moat for competitors to come across – not sure if that plays into effect, but may monitor them for 2 years even into 2018 to see what performance and dividend payments are like. Just boggling to me.
December will be great and you WILL beat that goal. Getting ready for 2016? As always – thanks for posting, congratulations on the excellent dividend income month – I’d kill for that, hands down, jealous! Think I may hit my first 4 digit mark this month…. trying to make some moves.
Very good point on the monster moat that KMI has. IT will be extremely challenging for other competitors to enter this market, especially if they don’t have any pipelines already. Hitting first 4 digit mark this month? Wow I can’t wait to see your Dec dividend update.
When it comes to dividend income, the only person I look up to is you, Tawcan. Congrats!
Thanks Jayson, that’s very kind of you to say that.
Well, done! Your savings rate is very good to be investing that much. We didn’t invest as much as we would have liked this year due to a home renovation. I hope that will change in 2016. We’ve got some money saved for the TFSA already so barring any more dividend cuts (like KMI, although I think HSE is next) then we should cross $12k per year early in the New Year.
Like you, I think you know this, we DRIP everything we can. I think it just makes sense to do so and then with leftover cash, simply deploy it to new investments to become even more diversified.
Keep up the great work.
Yea, HSE is not looking too rosy either, especially with the recent job cuts. Hopefully crude oil price will go up higher in the near future.
DRIPing makes life so much easier. You just accumulate sufficient shares and just let DRIP take over. Deploy the leftover cash to new investments once you have sufficient amount. Looks like we are using the exact same strategy. 🙂
Congrats on closing in on that $10K dividend income mark! Last year, I came just shy of crossing the $20K/year dividend income mark, but in the next couple days – will be surpassing it with ease.
Fed rate hike or no stinking rate hike – We DGI’ers are still getting paid for our due-diligence!
$20k per year dividend income mark is pretty awesome! Hope we’ll get to that point soon.
A great month of passive income. Nicely done!
Awesome results for November. It really puts things into perspective when you write how much fresh capital it would take to result X amount of dividend income knowing that you can achieve those results simply from your DRIPped shares. Great year over year growth and inspiring dividend results. Here’s to $10k+ in 2015.
It always blows my mind to see how much additional dividend income we’re getting simply from DRIPing shares and organic dividend growth. Too bad not many people are DRIPing their shares to take advantage of this powerful tool.
Nice job on your dividends so far this year. Inspirational as always!
Thanks DA. You’re doing well yourself too.
Wow! That’s incredible – congrats! Crossing the $10,000 mark in dividends for the year would be amazing.
Thanks Generation YRA. Crossing the $10k mark would be amazing for sure.
Great month there, almost 1000$ in divindend is nothing to sneeze at. My november was also pretty good since one of my stocks did pay a extra dividend because they don’t know what to do with the excess cash.
Keep adding capital to that snowball.
Our dividend snowball is rolling down the hill faster and getting bigger for sure.
Wow, nearly $1k in a month – well done!
I think I would have felt absolutely dreadful after just one hour’s sleep on the flight to Hong Kong – I normally end up having around 5-6 hours and don’t feel too bad. Hope you enjoyed your trip.
Thanks weenie. I had about 5 hours of sleep on the way back and it was nice to get that much on the plane. How I feel after a long plane ride also depends on when the departure and arrival times are. 🙂
Solid YOY growth there Tawcan! Looks like crossing $10k for the year is inevitable. That’s fantastic amount of cash.
I sold my shares in KMI. Couldn’t quite digest that divy cut. Good thing is that I’m able to deduct my loss in taxation.
Hi Dividend Lord,
I think it should be pretty safe to say that we’ll cross the $10k mark. Selling KMI to take advantage of the tax loss is a good idea. We hold KMI in our RRSP so can’t do that, unfortunately.
Great job Tawcan. You guys are doing wonderful. Slowly and surely, it’ll only shoot up from here. Thanks for sharing and it’s nice to see these income posts every month. My favorite. Cheers bud.
Thanks Tyler. Accumulating dividend income slowly but surely. 🙂
Very nice! I really like the Dilbert picture in the beginning of the article as well 🙂
Thanks Ben. I love that Dilbert picture, that’s why I use it on all my dividend income update.
Haha I love the Dilbert picture too! I click through whenever I see it.
Great job Tawcan. $9000 is truly amazing and the growth of 19%? Awesome!
Thanks BSR. Truly blessed to have this kind of dividend income.
Darn, those are impressive growth rates and associated dividend income to say the least. Nicely done. We are also pleased to read that your guys are of the `buy and hold` strategy (especially now that some companies are not doing so well because of the low oil prices), subject to future performance of course. That being said, cutting out a company when your are up may be a sensible thing to do (to maintain dividend growth), but when you are down it may do more harm than good. Its a bit of a guessing game anyways.
Looking forward to the Decembe wrap-up!
Hi Team CF,
I’m trying to re-construct our portfolio slightly by removing some higher yield, lower growth stocks. I typically like to deploy the buy and hold strategy though. 🙂
Thats absolutely fantastic, Tawcan. Almost $1K per month…great stuff. Keep up the great work!
Wow! Almost $1k this month and just under $10k so far for the year. That’s great stuff. It’s sad to hear about the cut from KMI because they were my largest source of dividends. But I had a sense something could be up and stopped adding a year or so ago. They got caught in a bad time of low operational performance and the necessary evil of funding growth through the capital markets. After the share price decline debt was the only real option but additional debt would have led to a lowering of their ratings. I was hoping a 50% cut would be enough but apparently management decided to cut a little deeper which hurts. Best of luck closing out the year on a strong note!
Yeah crappy about the KMI cut and many DGI are feeling the heat. It’s good that you stopped adding a year or so ago. I’ll continue monitor KMI the next while and see whether it makes sense to add more to average down the cost.