Welcome to another monthly dividend income update. It’s been a good month for dividend income – read below to find out more.
July was another month of dividend growth and it has produced the highest month ever for income – totalling just over $1,100. The increase is mainly due to all dividends being reinvested every month and going forward I hope the dividend income will keep growing.
With the markets continuing to go up lately I am a bit unsure what to do with the cash I have sitting in the investment account – either reinvest it all right now, or set some aside if/when the markets drop back down. Right now I’m thinking of using a mixture of both – reinvesting some cash while setting some aside in case the markets come back down. It helps that my timeline is so long that short term market fluctuations don’t really mean much when spread over a period of more than 20 years.
July 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
- Bank of Nova Scotia
- Boardwalk REIT
- Bell (BCE)
- Coca Cola
- TD Bank
Total dividend income: $1,112.33
Note – some of the dividends received each month are in US currency which is converted at 1:1 for simplicity.
Aside from reinvesting the dividends each month I made a new purchase last month – First Capital Realty.
First Capital Realty is a real estate company with a total of 160 properties located in Eastern, Central and Western Canada. They focus on consumer areas like groceries, household goods, prescription drugs and banking.
I chose to invest in First Capital because I like real estate long term and can see it continuing to increase in the future. First Capital hasn’t had consistent annual dividend increases year after year but I believe their long term growth strategy will allow them to maintain their earnings, and, just as important – keep paying their dividend. They fit within the metrics I use to look at new investments – a reasonable payout ratio, healthy earnings per share, history of stock appreciation, ability to handle a recession, dividend increases (even if they aren’t annually) and a diversified business model.
Stocks I Am Watching
I am still watching Costco right now but unfortunately I feel like it’s a bit too high right now. My strategy for allocating investments between the RRSP and TFSA remains the same – I am trying to add US dividend stocks to my RRSP while adding Canadian dividend stocks to my TFSA. This is because US dividend income within an RRSP is not subject to withholding tax, which isn’t the case with a TFSA.
Aside from Costco I am watching a few others – mainly Enbridge, Intact Financial and Telus. Unfortunately all these stocks are a bit high right now so I may just wait for a buying opportunity to come up (maybe this fall?) before I jump in.
Conclusion: July was a great month for dividend income – in fact, it was the highest monthly total yet. I’ll keep reinvesting the dividends and will set some cash aside in case any buying opportunities come up in the future. In July I bought shares in First Capital Realty and am happy to hold for a very long time.
How was your investment income last month? What are you watching/buying?