The last couple of months have been some of the busiest ever at work, but the nice thing about dividends is that they are truly a passive source of income – I don’t have to do anything at all but they still keep rolling in.
November was another slow and steady month of dividend growth. I took a look at my account statement for 2016 and I received dividends almost 300 separate times in the year – some big, some small (mostly small). But still pretty cool to get dividends that many times in a year.
With the Dow flirting with 20,000 I’ve still been waiting on the sidelines (for the most part) waiting for the markets to start to go down a little. A correction would be nice but even a slow decrease would be nice too. There are a few stocks I’ve been watching that I am waiting to buy…
Stocks I am Watching
CCL Industries – CCL has been on my radar for a while now. The company does specialty packaging and currently has a market cap of around $9B. They made headlines recently when they bought a UK-based company that makes polymer bank notes. A great deal for them, but not so great for me – the stock went up 20% the day the deal was announced. I thought it was a bit overpriced before, but now it looks like I’ll have to wait even longer to buy.
Intact Financial Corp – this one has been on my watch list for the past few months and I’ll probably end up buying it when an opportunity comes up. I like how they’re able to pass off any cost increases (such as major weather events that result in a lot of claims) onto consumers. They currently have a dividend increase streak of 11 years with an annual growth rate of around 12%. The yield is a bit low for my liking at around 2.5% but I can deal with that if it means continued growth in the future.
November was another month of the usual – reinvest and watch the dividends grow. For most of the dividends received I tend to reinvest them into the same companies, and use any extra cash to diversify into other companies.
Recently I decided to buy more of the US dollar ETF (DLR.TO) with the intention of converting it to US cash in the next little while. I did this because at the time the Canadian dollar was relatively high, and has since dropped back down, so I’ll make a nice little gain on the foreign exchange while saving the normal 2.5% that Questrade charges to convert USD.
Heading into January I am already thinking about where to put the 2017 TFSA money – I may wait a bit to see if the markets start to correct. The $5,500 is ready to go and will help increase the dividend income even higher.
November 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
- Emera Inc.
- National Bank
- Procter & Gamble
- Royal Bank of Canada
Total dividend income: $1,193.05
Note – some of the dividends received each month are in US currency which is converted at 1:1 for simplicity.
Conclusion: November was another slow and steady month, and I’m looking forward to the new year so I can use the new TFSA contribution room to add to the dividend income.
How was your investment income last month? What are you watching/buying?