This is the first dividend income update that I plan on writing monthly.
I hope to use the monthly updates as a chance to look at where my dividend income is coming from and the asset allocation. And of course it’s cool to look back at the amounts over time to see how the monthly income has grown.
Related: Asset Allocation for All Ages
When it comes to dividends, my strategy is fairly simple: invest in companies that pay dividends and then reinvest any dividends I receive. While I’ve made TFSA withdrawals in the past, I don’t make RRSP withdrawals for obvious reasons: the withdrawals are taxable and I want to take advantage of compound growth over time.
Related: Hidden Advantages of the TFSA
My long term goal is to use the dividends to pay for my expenses when I retire. For this reason, I try to invest in companies that have a history of increasing their dividends over time.
If anyone is interested, check out this chart of the historical dividend increases of Johnson & Johnson. Steady dividend increases since 1972!
March Dividend Income
I received dividend income from the following sources:
- Fortis Inc.
- RioCan REIT
- Crescent Point Energy
- Surge Energy
- Bird Construction
- Johnson & Johnson
- ETF: iShares Canadian Dividend Aristocrats (CDZ)
- ETF: iShares Select Dividend Index Fund (XDV)
- Suncor Energy
- BCE Inc.
- Cineplex Inc.
- Canoe EIT Income Fund
Total March dividend income: $573.95
Note – some of the dividends received are in US currency which is converted at 1:1 for simplicity.
Future Portfolio Plans
In the future my plan is to look at investing in US dividend companies. I currently own shares of Johnson & Johnson (JNJ) but I’m looking to add some diversity to the portfolio. Since I’m not as familiar with the American market I have been considering using an ETF that covers a large number of blue chip, American dividend companies. This is because the shares are held in my RRSP account which means I don’t have to pay the withholding tax on US dividends.
Conclusion: March was a decent month for dividend income and I’m hoping to reinvest the dividends soon, and add some more US shares to the portfolio – possibly with an ETF.
How was your investment income in March?