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?

 

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36 Comments

  • Reply
    Dave
    October 12, 2017 at 8:36 am

    Thanks for sharing your dividend report. You are having a great year. I hope the divided growth continues for Everyone. Earning almost $1300 in September is awsome.

    • Reply
      Tawcan
      October 13, 2017 at 2:03 am

      Thanks Dave, too bad we didn’t hit $1,300 in Sept. Hopefully in Oct.

  • Reply
    desidividend
    October 12, 2017 at 8:48 am

    Tawcan,
    Those are mighty numbers,i was half of the yours,but its a new record for me.Hopefully the december month might push you to cross the magic 1300 Number

    • Reply
      Tawcan
      October 13, 2017 at 2:06 am

      A new record is always a good thing. Congrats!

  • Reply
    R
    October 12, 2017 at 8:50 am

    I always look forward to this as it’s an inspiration to me and my family.

    Keep up the great work, Bob! You’ll achieve financial independence in no time.

    • Reply
      Tawcan
      October 13, 2017 at 2:06 am

      Thank you R, I appreciate that.

  • Reply
    Passivecanadianincome
    October 12, 2017 at 9:53 am

    Dam nice Bob! Great diversification. Congrats on hittin the 10k mark. Cheers

    • Reply
      Tawcan
      October 13, 2017 at 2:07 am

      Thank you. At $40 per hour wage that means I have save myself 250 worth of work hour so far this year. 😀

  • Reply
    Dividend Diplomats
    October 12, 2017 at 11:09 am

    Tawcan,

    Strong as heck month, no doubt. ANOTHER 4 digit month and you will for sure cross the mark of $1,300 in December, if not earlier. Your stock piling cash too, huh? I feel like I’ve been doing a little bit of the same myself, not too many “Oh my gosh I need to buy that company” feeling lately, but always keeping the eyes peeled. Nice job again Tawcan and thanks for sharing.

    -Lanny

    • Reply
      Tawcan
      October 13, 2017 at 2:08 am

      Thanks Lanny. Yup we are piling cash so we can deploy that at beginning of 2018 in tax-benefit accounts. Why paying extra tax when we can avoid it right?

  • Reply
    GYM
    October 12, 2017 at 12:09 pm

    Congrats! What a great month, 47 companies is very impressive! I’ll be so excited the day when I hit four digits. I think you can safely say you crossed the $1300 mark, especially if you account for the exchange rate from USD to CAD (but that’s just what I would do 😉 )

    Do you have any ETFs or are you strictly individual equities only? From the above list it looks like there aren’t any ETFs.

    • Reply
      Tawcan
      October 13, 2017 at 2:09 am

      Haha yea we would have broken $1,300 a few months ago if we taken account the exchange rate. But I like to keep things simple.

      We own 2 ETFs but they paid distribution last month.

  • Reply
    steve@pursuingretirement
    October 12, 2017 at 12:19 pm

    Your doing fantastic with your dividends. December you should cross the $1300 mark . Dividends are the best passive income. Congrats !

    • Reply
      Tawcan
      October 13, 2017 at 2:10 am

      Thanks Steve, hoping t o cross the $1,300 mark before Dec.

  • Reply
    Buy, Hold Long
    October 12, 2017 at 3:25 pm

    Fantastic results and well done to you. I think December will be the month that you finally crack the $1300 mark. Cheers

    • Reply
      Tawcan
      October 13, 2017 at 2:10 am

      Thanks, hopefully we’ll crack the $1300 before Dec. We’ll have to wait and see I guess.

  • Reply
    My Dividend Dynasty
    October 12, 2017 at 3:52 pm

    Amazing dividend income! Can’t wait till I cross the threshold and get a 4-digit month! Awesome job and thanks for sharing! Keep up the great work! 🙂

    • Reply
      Tawcan
      October 13, 2017 at 2:10 am

      One step at a time. Keep adding new capital to your portfolio and you soon will hit 4-digit month.

  • Reply
    Engineering Dividends
    October 12, 2017 at 9:36 pm

    Wow, really impressive! That dividend income chart says it all… consistent progress over time. Looks like you might be averaging close to 20% YoY growth each month this year – that’s not easy when you are already bringing in a good amount. I’m sure you’ll see continued success. Congrats on a terrific Sept.

    • Reply
      Tawcan
      October 13, 2017 at 2:11 am

      Thank you, yea hopefully we’ll get close to 20% YOY growth at end of 2017. Have to wait and see. 🙂

  • Reply
    Steven
    October 12, 2017 at 10:07 pm

    can you break down what stock is in your TFSA/RRSP?

    • Reply
      Tawcan
      October 13, 2017 at 2:12 am

      Generally speaking…
      TFSA – REITs and income trusts
      RRSP – US stocks

      But we do also whole Canadian dividend stocks in TFSA and RRSP.

  • Reply
    wealth from thirty
    October 12, 2017 at 10:15 pm

    Congrats on the all time high dividend income Bob (by 25c!) – $1300 just around the corner. A portfolio throwing off $10k plus per year is excellent and thanks for the regular update. Would be awesome to attend FinCon vicariously through a post conference post if you do one…I don’t think we have anything similar in Oz. My portfolio produced a delectable 0.08c this month in dividend income hahaha. $1300 one day for me too 🙂

    • Reply
      Tawcan
      October 13, 2017 at 2:13 am

      Oh wow I didn’t even realize it was an all time high. Woohoo! 😀

      Yes will have to see if I can write a post on FinCon to share my experience.

      Don’t get discouraged with the low dividend income month. It takes time to build a sizable dividend portfolio. I know b/c it has taken me a number of years to get to what you see today.

  • Reply
    Tom
    October 13, 2017 at 6:42 am

    Nice group of companies working hard for you. That’s what us dividend stock investor like. Great job and have a good weekend.

  • Reply
    MrSLM
    October 13, 2017 at 7:23 am

    Great month Tawcan, and you have 3 more shots at breaking that elusive $1300 mark 🙂

    • Reply
      Tawcan
      October 14, 2017 at 9:45 pm

      That’s one way to see it, have 3 more shots at breaking the $1,300 mark. We still have a bit ways to go compare to you MrSLM.

  • Reply
    Revanche @ A Gai Shan Life
    October 13, 2017 at 10:14 pm

    Thanks for the breakdown, you’ve given me some food for thought on how I might adjust our holdings. Right now all our dividend yielding stocks are in our taxable brokerage account. I only started thinking seriously about dividend investing two years ago, so my annual dividend total is only nearing $2000 but I’m looking forward to seeing that as a monthly total 🙂

    How will you use the dividends paid out in USD when the time comes to spend it? Will you need to convert it later or will you be able to use it in your normal routine?

    • Reply
      Tawcan
      October 14, 2017 at 9:47 pm

      It’s definitely a good idea to invest inside of tax-deferred accounts so you can minimize tax.

      Dividends paid out in USD are kept in USD (That’s the nice thing about Questrade). We then wait till we have enough USD to purchase more US dividend paying stocks.

  • Reply
    DivHut
    October 13, 2017 at 10:31 pm

    That’s a nice long list of companies paying you for the month of September. Keep up the good work. It’s always inspiring to read your updates!

    • Reply
      Tawcan
      October 14, 2017 at 9:48 pm

      Thanks DivHut, you’re doing well too.

  • Reply
    Matthew Freeman
    October 14, 2017 at 5:17 pm

    Congrats on another terrific month. I’m sure you will reach $1,300 in October. Always enjoy reading your updates thank you for sharing with us.

    • Reply
      Tawcan
      October 14, 2017 at 9:49 pm

      Hopefully we’ll reach $1,300 in October. It has been close for a number of months now.

  • Reply
    Sascha
    October 14, 2017 at 7:42 pm

    Very nice, Tawcan.

    I for myself got div from 15 companies in Sept. It’s a small month for me with 260$. But slowly and steady it goes up.

    • Reply
      Tawcan
      October 14, 2017 at 9:49 pm

      Hi Sascha,

      We were getting $260 a few years ago. It takes time to build up your dividend portfolio. Keep it up.

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