Dividend Income – Sept 2017 Update

With September behind us, that means there are only 3 months left for 2017! So far, 2017 has been an amazing year and I can’t wait to see what is in store for us the next 3 months.

FinCon is happening later this month in Dallas. I am looking forward to this 4-day-long personal finance conference and nerding it out with like-minded people. Hopefully I’ll be able to pick up a few tips on how to grow this blog further. It will also be a lot of fun to finally meet some awesome personal finance bloggers that I have been talking to the last few years.

Sept Dividend Income

In September 2017 we received dividend income from 46 companies:

  • Pure Industrial REIT (AAR.UN)
  • Brookfield Renewable (BEP.UN)
  • BP plc (BP)
  • Corus Entertainment
  • Canadian National Railway (CNR.TO)
  • Costco (COST)
  • ConocoPhillips (COP)
  • Chevron (CVX)
  • Canadian Tire (CTC.A)
  • Dream Office REIT (D.UN)
  • Dream Global REIT (DRG.UN)
  • Dream Industrial REIT (DIR.UN)
  • Enbrige (ENB.TO)
  • Enbridge Income Trust (ENF.TO)
  • Evertz Technologies (ET.TO)
  • Fortis (FTS.TO)
  • Hydro One (H.TO)
  • H&R REIT (HR.UN)
  • High Liner Foods (HLF.TO)
  • Intact Financial (IFC.TO)
  • Intel (INTC)
  • Inter Pipeline (IPL.TO)
  • Johnson & Johnson (JNJ)
  • KEG Income Trust (KEG.UN)
  • McDonald’s (MCD)
  • Manulife Financial (MFC.TO)
  • Magna International (MG.TO)
  • MCAN Mortgage Corp (MKP.TO)
  • Metro (MRU.TO)
  • Prairiesky Royalty (PSK.TO)
  • Qualcomm (QCOM)
  • RioCan REIT (REI.UN)
  • Saputo (SAP.TO)
  • Sabra Health Care (SBRA)
  • Smart REIT (SRU.UN)
  • Suncor (SU.TO)
  • Target (TD)
  • Unilever plc (UL)
  • Visa (V)
  • Ventas (VTR)
  • Vanguard Canadian All Cap (VCN.TO)
  • Vanguard All-World Ex Canada (VXC)
  • WestJet (WJA.TO)
  • Waste Management (MW)
  • Wal-Mart (WMT)
  • Exco Technologies (XTC)

Wow I can’t believe that we received dividend income from a total of 46 companies! That’s equivalent of receiving 46 pay cheques in September. Amazing stuff! In total we received $1,282.67 in dividend income.

Although I am very excited about our September dividend income, I am slightly disappointed that once again we didn’t cross the $1,300 milestone. We have been close for the last 4 months, would we ever cross this key milestone before the end of 2017?

Out of the $1,282.67 dividend income that we received in September, $307.06 was in USD and $975.61 was in CAD. Please note, we use a 1 to 1 currency rate approach. Therefore, we do not convert dividends received in USD to CAD. We are ignoring 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 September 2017 were Suncor, Manulife Financial, Enbridge, Chevron, and Intact Financial. The top 5 payouts accounted for 30.88% of our September dividend income.

Dividend Income Breakdown

We hold our dividend stocks in taxable accounts, RRSPs, and TFSAs. Every year, we maximize tax-advantage accounts first before investing in taxable accounts.

For 2017 we have already maximized both RRSP and TFSA contribution rooms. We are now focused on saving money for 2018 RRSP & TFSA contributions.

For September dividend income, the breakdown across the different accounts are:

  • Taxable: $335.92 or 26.2%
  • RRSPs: $473.75 or 36.9%
  • TFSAs: $473.00 or 36.9%

As planned, the majority of the September dividend income was tax-free. We want to be as tax efficient as possible. We only invest REITs and income trusts in TFSA only and US dividend paying stocks n RRSP only. For taxable accounts, we only invest in eligible Canadian dividend paying companies to take advantage of the favourable dividend tax credit.

When we reach financial independence and are living off dividend income, we plan to utilize as much tax-free dividend income as possible to extremely income tax efficient.

Dividend Growth

Compared to Sept 2016, we saw a YOY growth of 19.41%. It’s nice to see the YOY growth number increase slightly compared to what we saw in August 2017.

Dividend Increases

In September a number of stocks that we own in our portfolio announced dividend increase:

  • McDonald’s raised its dividend by 7.45% to $1.01 per share
  • Emera raised its dividend by 8.13% to $0.565 per share

These two raises increased our annual dividend income by $30.28.

Think an annual dividend income increase of $30.28 is pretty insignificant? Think again. At 3% dividend yield, you would have to invest $1,009.33.

Instead having to invest $1,009.33, our dividend portfolio generated an additional $30.28 by itself. This is very powerful stuff!

Dividend Stock Transaction

We didn’t make any dividend stock transaction in September as we didn’t find anything attractive enough to pull the buy trigger. We are saving money toward 2018 TFSA and RRSP contributions. Hopefully the market will dip a bit in early 2018 to allow us purchase stocks on a slight discount.

Summary

It’s hard to believe we received pay cheques from 47 companies. That’s a lot of income diversification! Having income diversification is really great as we aren’t worried if one or two companies were to freeze or cut their dividends. We have other 40 something companies that will continue paying us dividend income.

So far in 2017 we have received $10,998.83 in dividend income. Woohoo for crossing the 5 digit mark already! Looking back, we didn’t cross the 5 digit mark in 2016 until October, and we only managed to cross the 5 digit mark at end of 2015. Needless to say, we have made some great stride on our dividend income.

Dear readers, how was your September 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