Welcome to another monthly dividend income update.
Note – this update is for June, July and August (I’m calling it the “summer of dividends”) as I have somehow ran short on time lately and haven’t updated in a while!
The summer was another and steady time for dividends that saw a bit of a drop compared to prior months but nothing too major. As I look back on the midway point for the year the 2017 dividend income so far has been pretty good and I am hoping I can build on that going into the second half of the year and 2018.
August 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: $1,386.10
Note – some of the dividends received each month are in US currency which is converted at 1:1 for simplicity.
The summer was fairly quiet for account activity; I made one purchase – shares of Telus.
I originally bought only a few shares of Telus a while back but wanted to add more; I like how they have been able to expand their subscriber base over the past few years, especially in Western Canada. What attracted me the most to Telus is the positive earnings per share, a 5 year return of around 40%, reasonable price to earnings ratio (compared to other telecoms), and of course the increasing dividend. I like how Telus has publicly said they’re committed to raising the dividend around 8% per year, which is something that isn’t guaranteed but it shows where their focus is – rewarding shareholders.
Taxable Dividends From New Account
I’ve opened a fifth investment account since I have maxed out the RRSP and TFSA accounts, so all the dividend income in this account will now be fully taxable. It won’t change much as far as strategy, as all the stocks will be long term holds as the other accounts. The only change will be that I’ll be taxed on the dividend income I get from the new account.
Stocks I’m Watching
CIBC. This is a stock I would like to own more of. The banks are scheduled to report their quarterly earnings soon and I expect big things from them. If not and their stock prices go down, I’ll treat it as an opportunity to buy.
McDonald’s. I like this stock because they have successfully implemented their expansion plans for the past couple years and they have also added machines that customers can use to order; I’ll admit I was skeptical at first but now when I go in there I always use the machine to order. This will obviously lower their costs and (ideally) their profits.
I’m keeping an eye on a few stocks but I’ve also maintained some cash in my account for the time being. I have more cash now in the account than I’ve had in years, and this is so that I have the flexibility to buy in case the markets go down. We’ve all heard how the markets are due for a correction and of course I have no idea when that will happen. But when it does I plan on buying a few I’ve had my eye on.
How was your dividend income last month?