Dividend Income – Oct 2018 Update

Wow, the market sure has been volatile lately. With around $11,000 saved up already for 2018 TFSA contributions, I’m hoping that the market will remain volatile over the few months so we can purchase stocks at a slight discount. If the market continues to slide, I may deploy a few thousand dollars in our taxable accounts to take advantage of the lower price. For now, I’m doing a wait and see approach when it comes to deploying more cash.

Since coming back from our 1-month vacation in Denmark in late August, Mrs. T and I have been getting up around 6 AM every day. We thought it was a good idea to start the day early to get some things done before the kids wake up. A few times a week, I would go to the local swimming pool and swim for about 30 – 40 minutes before heading to work. It was tough getting started at first but after 2 months, I’m getting decent at swimming once again. Swimming breaststroke for 1 km would take me about 30 minutes. I’m working on getting faster and more proficient at it. I still need to spend some time practicing freestyle though. I also have been hitting the gym on a regular basis. I haven’t weighed myself in a while but it feels like I have lost a few inches here and there. I need to make sure to continue with this exercise routine and watch out what I eat at the same time.

For Halloween, we all dressed up and trick or treated around the neighbourhood. I was lazy and decided to reuse my Pac Man costume from last year. It was a bit sad to find out that none of the kids knew who Pac Man was (I must be getting old lol!). Mrs. T painted her face by herself and scared a few ppl. Baby T1.0 wore home-made Viking costume and Baby T2.0 dressed up as a bunny. After 30 minutes the kids received a ton of candies and we headed home. A fun night all together.

The camera angle made me look like a 2D PacMan

Without further ado, let’s take a look at our October dividend income.

October Dividend Income

In October we received dividends from the following companies:

  • BCE (BCE.TO)
  • Bank of Nova Scotia (BNS.TO)
  • CIBC (CM.TO)
  • Canadian Natural Resources (CNQ.TO)
  • Dream Office REIT (D.UN)
  • Dream Global REIT (DRG.UN)
  • Dream Industrial REIT (DIR.UN)
  • Enbridge Income Trust (ENF.TO)
  • H&R REIT (HR.UN)
  • Inter Pipeline (IPL.TO)
  • KEG Income Trust (KEG.UN)
  • Coca-Cola (KO)
  • Nutrient Ltd (NTR.TO)
  • Prairiesky Royalty (PSK.TO)
  • Rogers (RCI.B)
  • RioCan (REI.UN)
  • SmartCentres REIT (SRU.UN)
  • Telus (T.TO)
  • TD (TD.TO)
  • TransCanada Corp (TRP.TO)
  • Domtar Corp (UFS.TO)
  • Vanguard Canadian All Cap (VCN.TO)
  • Ventas (VTR)
  • Vanguard All-World Ex Canada (VXC.TO)

At the end of the month, we received pay cheques from 22 companies and 2 index ETFs. The 24 pay cheques added up to $1603.63! This was the third highest dividend income amount we’ve received so far in 2018. It was also the 31st straight time that we received over 4 digits in dividend income!

Pretty awesome!

In terms of USD vs. CAD break down, it was one of those months we received very little in USD. We only received $158.99 of dividend in USD. This was about a 10-90 split. If you are a long time reader to our monthly dividend income reports, you know that 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 Oct 2018 came from BCE, CIBC, Telus, TD, and Bank of Nova Scotia (not in order). Dividend payouts from these 5 companies accounted for 55.3% of our Oct dividend income, or $886.82.  

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.

For the Oct 2018 dividend income, here’s the breakdown of the different accounts:

  • Taxable: $447.61 or 28%
  • RRSPs: $433.59 or 27%
  • TFSAs: $722.43 or 45%

We only hold Canadian eligible dividend stocks in our taxable accounts so we can get the maximum amount of dividend tax credit.

As a reminder, we only own US dividend-paying stocks in our RRSPs to avoid the 15% withholding tax.

Dividend Growth

Compared to Oct 2017, we saw a YOY growth of 18.31%. Not too shabby considering Oct 2017 was the highest dividend income total for the entire year ($1,310.05). I’ll take an above 15% YOY growth any day.

Hopefully we’ll continue the strong YOY trend for Nov and Dec. It’s interesting to note that except for February, we had a YOY growth percentage that was above 15% for all the other months. I am very pleased with these numbers.

Dividend Increases

In October a number of stocks that we hold in our dividend portfolio announced dividend payout increase:

  • Fortis raised its dividend by 5.88% to $0.45 per share.
  • Visa raised its dividend by 19.05% to $0.25 per share.

All these dividend increases meant an overall annual dividend increase of $32.5. I was very happy to see the almost 20% payout increase by Visa. I was a little surprised that we didn’t see more dividend increases in October. However, if we look at all the dividend payout increases so far in 2018, we have already seen an increase of over $850 toward our annual dividend income. To put that in a quantitative perspective, at 4% dividend yield that meant we didn’t have to invest over $21,250 of fresh capital in our dividend portfolio.

That’s a perfect example of having your money work hard for you, so you don’t have to!

Dividend Stock Transactions

Throughout the month we were making small transactions buying VCN and VXC with cash reserves in our RRSP And TFSA accounts to take advantage of Questrade’s free ETF trading. After multiple purchases, we added 50 shares of VCN and 45 shares of VXC in our dividend portfolio.

We didn’t, however, add any individual stocks during October.

Conclusion

So far in 2018, we have received a total of $15,312.79 in dividend income. We have already surpassed our 2017 total and there are still 2 more months to go.

If we receive over $1,500 in Nov and Dec, that will put us over the $18,000 annual dividend income goal for 2018. For now, things are looking promising. Fingers crossed!

Dear readers, how was your October dividend income?

Written by Tawcan
Hi I’m Bob from Vancouver Canada, I am working toward joyful life and financial independence through frugal living, dividend investing, passive income generation, life balance, and self-improvement. This blog is my way to chronicle my journey and share my stories and thoughts along the way. Stay in touch on Facebook and Twitter. Or sign up via Newsletter