Welcome to another monthly dividend income update.
For the past month I’ve been sitting on the sidelines for a while waiting for some bargains to pop up and I did do some buying (read more below) but for the most part it was another month of watching the cash roll in – and that’s not something I’ll ever complain about.
March Dividend Income
I received dividend income from the following sources:
- RioCan REIT
- Crescent Point Energy
- Surge Energy
- 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
- Boardwalk REIT
- Canadian Utilities
- Johnson & Johnson
- Target Corp
- Canadian Western Bank
- CSX Corp
- CN Rail
Total dividend income: $1,166.02
Note – some of the dividends received each month are in US currency which is converted at 1:1 for simplicity.
In March I had one purchase – TD Bank. With the recent controversy surrounding their questionable sales practices their share price dropped and I used this as an opportunity to add to my position. I think it might continue to stay at the current share price for the short term, but long term I like the potential for growth. Their business model wasn’t negatively impacted by the media coverage of their sales practices and I see it as a short term blip. As you’ll see below from their recent dividend increase, they continue to remain committed to rewarding shareholders through a growing dividend.
Although not all within the month of March, recent dividend increases were announced by:
- CSX Corp. (11%)
- Surge Energy (11%)
- TD Bank (9%)
- Costco (11%) – plus a special cash dividend of $7 per share. I should mention that the special dividend is part of their mandate to return capital to shareholders and was financed through borrowing additional funds. On the surface that seems like a bit of a head scratcher but I still like their direction long term and of course agree with their efforts to return capital to their shareholders.
If you’ll recall I bought shares in CSX Corp in January. Since their new leadership team has started implementing the precision railroad processes, costs have come down and profits have gone up. Essentially the company is becoming leaner and more profitable by finding ways to increase efficiency. A share buyback was also announced along with a dividend increase, and if this continues I would expect further dividend increases in the near future.
Stocks I’m Watching
There are two stocks I’m currently watching:
- Telus. I like their business model because they’ve been able to invest significant amounts into their wireless networks and they’re big enough to handle any new entrants into the market (which seem to be rare in Canada). And all the while they’ve continued to grow their dividend. I see it as another slow and steady stock which is successful but boring.
- Intact Financial. I’ve been watching this one for a while and might just buy shares sooner rather than later. They’re starting to build a solid track record of increasing their dividend and have (so far) been able to successfully handle major weather events that customers can claim on their insurance.
‘Offer to Purchase’ Letter
Since I own shares in Enbridge I receive their investor information in the mail periodically; last month I received an interesting letter outlining an offer from a private investment firm to purchase my shares (I assume all shareholders received the same letter).
I have no intention to sell the shares any time soon so I didn’t give it much serious thought. The funny thing about the letter is that the offer price per share was actually lower than the current market price. I’m not sure why anyone would agree to sell their shares for a price lower than what they could sell them for on the open market, but I still found it interesting.
How was your dividend income last month?