Dividend Portfolio

Our goal for our dividend portfolio is to create sufficient dividend income to cover our annual expenses. I hope to show that it is indeed possible to achieve financial independence through a diversified dividend portfolio.

Why dividends? Because dividend income is very tax-efficient, especially when we don’t have any earned income from full-time or part-time work.

Below is our dividend portfolio. We hold dividend-paying stocks in RRSPs, TFSAs and regular accounts. All REITs and income trusts are held in TFSAs for tax efficiency purposes. All US stocks and ADRs are held in RRSPs to take advantage of the tax treaty between Canada and USA.

If you have any questions regarding dividends, please take a look here.

Please note: All content posted on this blog represents my personal opinions and views and should never be considered as professional advice. I am not a financial professional, and I can buy, sell, or hold any investment at anytime.

The dividend stocks that we own fall into the following two categories:

  1. Dividend growers. These are companies that have increased dividend year after year. Some of the companies on the list have increased their dividends for over 20 years. The yearly dividend increase is significant because this is a way to keep up with inflation.
  2. High income stocks. These are companies that pay over 5% dividend yield. Most of them have slower dividend growth than dividend growers.

Our portfolio consists a mix of dividend growers and high income stocks. As the value of our dividend portfolio gets bigger, it becomes increasingly more and more difficult to grow our dividend income via fresh capitals. Therefore, over the last few years, we have been putting more focus on dividend grower stocks, so we can grow our dividend income organically.

For those positions that the dividend received is enough to purchase addition share(s), we enroll in synthetic DRIP to maximize the power of compound interest.

Our dividend stock portfolio

We are currently investing in 60 companies and 2 index ETF.

(Updated Feb 2020)