Welcome to another monthly dividend income update.
May was another month of slow and steady dividends; I made a couple purchases but aside from that – not much action aside from the steady stream of income coming in. There was some excitement though – it was a record month for dividend income! Read more about that below….
May 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
- Bank of Montreal
- Boardwalk REIT
- National Bank
- Proctor & Gamble
- Royal Bank of Canada
- TD Bank
Total dividend income: $1,406.25
Note – some of the dividends received each month are in US currency which is converted at 1:1 for simplicity.
Record Month for Dividends
May was a record month for dividend income – I’ve never received so many dividends in one month, and I’m thankful it seems to be (slowly) increasing.
The increase was mainly due to a one-time, special cash dividend courtesy of Costco. A couple months ago not only did Costco increase their regular dividend, they also announced a special cash dividend of $7 per share. The cash dividend cost the company $3.1 billion which was primarily financed through additional borrowing. That’s not exactly the best case scenario when paying a cash dividend, but I have faith they know what they’re doing and of course I can’t complain about receiving two dividends in one month.
Costco’s stock recently took a hit (along with other grocery stocks) when Amazon bought Whole Foods. I felt that the drop in market value for Costco was overblown so I bought more shares, and I’m happy to hold them for the long term. Will Costco be affected by Amazon’s new purchase? Maybe, but I don’t think it will be enough to significantly impact their business. People will still make their weekend trek to Costco, overspend on items they didn’t know they needed and enjoy a hotdog lunch for $1.50.
Stocks I Bought
May was a pretty slow month; I only made two buys.
One of the buys I made was BMO. I love Canadian bank stocks and see them growing their dividends for the foreseeable future, so I was happy to buy more BMO shares when they temporarily dropped.
The second one was Intact Financial. I have been watching this stock for a while and finally jumped in. I like their business model and how they’ve been able to successfully handle major weather events over the past few years (that have been covered by insurance). My strategy with Intact is the usual – buy and hold, and if it drops again in the future I will probably buy more shares.
Stocks I’m Watching
There are two stocks I’m currently watching:
Costco. As I mentioned above, if the stock continues to drop I will likely buy more. Their business plan is solid and their management is strong.
Telus. This is another one I’ve been watching for a while and will be happy to buy more shares if an opportunity comes up.
How was your dividend income last month?