December was another decent month of dividend income. I’ve been trying to focus on the amounts received from each company and obviously it’s best when the dividends get increased over time.
Although the dividend portfolio has been relatively quiet, the big news in the markets recently has been the prolonged downturn in oil prices. Even though we aren’t seeing the low prices at the gas pumps the markets have been hit hard by an oversupply of oil in the world. As a result oil companies are continuing to slash their spending and unfortunately this means potential for dividend cuts. I own shares in Surge Energy and Crescent Point, and both have cut their dividends. I am currently watching Suncor, but am curious to see how the drama with Canadian Oil Sands will play out and am hesitant to initiate a position right now.
Where oil prices are headed is anyones guess, but while the downturn works its way through the markets I have been focusing on other industries and making sure the portfolio is balanced.
On a positive note, dividend increases were announced today from ATCO (15% increase) and Canadian Utilities (10% increase).
On the watch list now are: Telus, A&W Royalties Income Fund and Suncor. Telus has recently taken a hit as Shaw bought Wind Mobile for $1.6B which means Telus will now have another direct competitor in the wireless industry. Will it affect the industry? Maybe temporarily, but I have full faith that in the long run Telus will find a way to keep their revenues high (even if it means bill increases for some).
December Dividend Income
I received dividend income from the following sources:
- RioCan REIT
- Crescent Point Energy
- Surge Energy
- Bird Construction
- ETF: iShares Canadian Dividend Aristocrats (CDZ)
- ETF: iShares Select Dividend Index Fund (XDV)
- Cineplex Inc.
- Canoe EIT Income Fund
- Canadian Apartment REIT
- Canadian REIT
- Allied Properties REIT
- Canadian Utilities
- Boardwalk REIT
- Johnson & Johnson
- Coca Cola
Total dividend income: $886.03
Note – some of the dividends received each month are in US currency which is converted at 1:1 for simplicity.
This month had three purchases: Fortis, Canadian Utilities and Canadian Western Bank. Even though Canadian Western Bank has been beaten down because of its obvious exposure to the oi and gas industry, I still like it as a long term hold. Healthy earnings and steady dividends means it will be one of the handful of bank stocks I’ll be able to depend on for future income.
Suncor is definitely on my watch list, but I’m not quite sure if/where the bottom is on the oil downturn. Anyone who thinks the downturn is almost over would be inclined to invest sooner rather than later, but somehow I don’t think we’ve reached the bottom yet.
Conclusion: December was another slow and steady month of dividend income and now that we’re into 2016 I have another $5,500 to invest. I plan on watching the markets closely to see when to spend it.
How was your investment income last month? What are you watching/buying?