Dividend income – October 2015 update

It’s hard to believe that October 2015 is now in the history book. We saw a slight rebound in the stock market this past month. Would this rebound continue in November and December? I guess we’ll have to wait and see. Because we’re enrolled in DRIP for many of our stock holdings, we really don’t care whether the stock price goes up or down. If it goes down, great we get the average down our cost basis slightly; if it goes up, great our portfolio value increases. Essentially we’re on auto-pilot when it comes to these holdings that are DRIPing away. The focus for the rest of the 2015 is to save more money so we can maximize our contribution limits of our TFSA’s at beginning of 2016. I realize we could purchase dividend stocks in our regular tax accounts then do an in-kind transfer in January, but this makes calculating capital gains slightly complicated. For now we’re parking some cash on the side and hoping that the market stay volatile the next little while. A 20%+ drop in the market in January time frame is certainly very welcomed from our point of view.

It’s amazing that there’s only two months left in 2015. At beginning of this year, Baby T started walking on his own and started saying a few words here and there. Now he’s running all over the place and his language skill has exploded! He has been putting more and more words together to form sentences. What amazes me is his ability to pick up new vocabularies very quickly in three different languages. Whenever I get home after my business trips, it always seemed that Baby T has grown significantly and learned more skills. Having a kid is an amazing life journey and I feel truly blessed.

Just as amazing is the fact that we’re getting paid by simply owning stock shares of dividend paying companies. Gotta love having our money working hard for us so we don’t have to.

Dividend Income
We received dividends from the following companies:

Pure Industrial REIT (AAR.UN)
Agrium Inc (AGU.TO)
BCE (BCE.TO)
Bank of Nova Scotia (BNS.TO)
Chorus Aviation Inc (CHR.B)
Corus Entertainment (CJR.B)
Canadian Imperial Bank of Commerce (CM.TO)
Canadian Nature Resources (CNQ.TO)
Dream Office REIT (D.UN)
Dream Global REIT (DRG.UN)
Energyplus Corp (ERF.TO)
General Electric (GE)
H&R REIT (HR.UN)
Husky Energy (HSE.TO)
Inter Pipeline (IPL.TO)
KEG Income Trust (KEG.UN)
Coca-Cola (KO)
Liquor Store (LIQ.TO)
Rogers Communication (RCI.B)
RioCan REIT (REI.UN)
Telus (T.TO)
TD (TD.TO)
TransCanada Corp (TRP.TO)
Doctor Corp (UFS.TO)

In October we received a total of $947.08 in dividend income from a total of 24 companies. Of the $947.09 received, $117.99 was in US currency and $829.10 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.

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Dividend Growth
Dividend growth an important metric. Thanks to dividend growth, we are expecting to receive an additional $503.19 in dividends moving forward. Considering a conservative 3% dividend yield, we’d need $16,773 new capital to generate an additional $503.19 in dividend income. Let’s think about this another way… instead needing to invest $16,773 to generate $503.19, we will be able to generate $1,006.38 thanks to organic dividend growth and fresh capital. Talk about icing on the cake!

When it comes to dividend growth comparison, we saw a 51.69% YOY growth compared to Oct 2014.

Holy cow!

This is absolutely insane!

I knew our dividend growth is pretty solid, considering we’ve added significant amount of capital so far in 2015, but a 51.69% YOY growth? Wow!!! I’m simply overjoyed to see such impressive number!

Moving forward
So far this year we’ve received $8,421.61 in dividend income. We already surpassed our 2014 dividend income of $8,362.30. Woohoo! With two months left in the year it will be interesting to see if we can cross the $10,000 dividend income per year milestone. Looking back of our dividend income histories from August and September, I estimate that we should get around $900 of dividend income per month in November and December. This should put us across this giant 5 digit dividend income milestone. Considering we recently purchased more stocks like WMT and POT, hopefully we’ll collect some dividends from these purchases before end of 2015.

2015 has been a huge year for us. Mrs. T and I are very grateful for the great year.

Thank you for reading and for your continued support. How was your October dividend income?

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26 thoughts on “Dividend income – October 2015 update”

  4. Tawcan,

    Awesome work there. That 50% YOY growth is especially impressive considering the large base you guys are already working with. As the base grows, however, the dividend growth will have an even larger impact. That’s why that snowball effect is so wonderful. 🙂

    Keep it up. You guys are having a killer 2015!

    Cheers.

    Reply

    • Hi Jason,

      Thanks, I’m wondering what your dividend income is like for October. Dividend growth is having a huge impact for sure. Gotta love the snowball effect.

      Reply

  6. Hi Tawcan,

    Those are some very impressive numbers congrats! The $947.08 for October is amazing. It won’t be long before you regularly hit four figures per month of passive income. The YoY growth is also incredibly strong 51.69%! You have many names in your October income list that I would like to hold someday such as: TD, T, GE, HSE, CNQ, CJR, BNS, and BCE. I look forward to seeing how November and December work out next. Thank you for sharing!

    Reply

    • Hi Dividendniche,

      Many of these stocks that you listed are certainly stocks that we’d buy more if we have cash. Nothing wrong with owning solid dividend paying stocks.

      Reply

  7. 51% YoY growth is fantastic! And you are almost there — getting close to the magical 4 figure number 🙂

    Congrats on the dividend income and keep up the great work. I bet by next quarter you will hit the $1000 number.

    R2R

    Reply

  8. This is the kind of stuff that motivates us and keeps us chugging along! Not that you have a crystal ball but what’s your take on CJR.B? Do you think it’s going to have any sort of recovery in the near term?

    Reply

    • Hi Dividend Arena,

      CJR.B is facing a lot of headwinds. I don’t have a crystal ball but I think the stock will recover eventually.

      Reply

  9. Another solid dividend income report with an awesome year over year increase. Happy to see TD and BNS in the mix as well. On a side note, I can totally relate to your baby T stories. I can’t believe baby DivHut is 8 months already. The changes are literally week to week. From all the milestones of following you with eyes, to holding his head, to rolling over, to sitting, first two teeth coming in, laughing, pointing, giggling and more. It is a great life experience. Thanks for sharing this update and look forward to seeing how 2015 closes out and how much you beat your 2014 totals by.

    Reply

  12. Wow, 51% YOY growth – good job! Earning income from such a wide variety of companies is a solid strategy because it protects against the risk of something negative happening to one particular company

    Reply

  13. Awesome awesome awesome! Great YoY growth and those organic dividend raises are fantastic. I think that’s what people just don’t realize sometimes is just how powerful a dividend increase is in equivalent invested income. Looking forward to seeing you officially cross that $10k mark!

    Reply

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