dividend income august 2016 report

August 2016 Dividend Income

Dividends

After a no-buy in July, I’ve come back in August with an increased position in Exchange Income Corp. (TSX: EIF). I believe this company has a bright future ahead of it and is in a very niche position with very little competition and are diversified and unique. They continue to build their empire and I look forward to future acquisitions in the company.

The market overall remains unimpressive for buying stocks but after not buying anything in July I feel as though I had to make a purchase. After all, we’ve heard time in the market vs timing the market countless times – and I feel the need to continue boosting my dividend income as growth has slowed down big time in the past quarter of the year for myself, after regularly increasing my annual dividend income by $200+ monthly for the first part of the year.

It’s hard buying stocks in Canada. I’d really like for the USD to be lower as I can diversify into the U.S. market as it’s difficult to diversify away from financials and energy in this small market. The consumer staples stocks yield so little while costing so much, it’s difficult to justify purchasing them at this point – though, Metro (MRU) continues to call to me.

Summary of August Investment Activities

Throughout August, I’ve purchased:

Two of my holdings increased their dividends.

None of my holdings reduced their dividends. Great news!

Annual Dividend Income Update

May 2016 Net Increase June 2016
Annual Dividend Income $2,118.86 $90.48 $2,209.34
Monthly Dividend Income $176.57 $7.54 $184.11
Percentage Increase +4.27%
YTD Increase +106.91%

August 2016 Dividend Income

Non-Registered Taxable Account
NA $16.50
ZWU $7.02
WCP $2.80
IPL $5.59
EIF $12.56
ENF $7.78
AD $16.20
RY $20.25
Tax-Free Savings Account
AAR.UN $3.90
PLZ.UN $5.63
IPL $7.41
D.UN $5.63
DRG.UN $6.67
AD $6.75
RNW $11.00
HR.UN $4.95
CJR.B $9.98
Total
$154.52

Dividend Income Journey

August Monthly Dividend Income

August was a decent, slow and steady month. $154.52 was added to the Dividend Beginner’s coffers for reinvestment.

YoY Monthly Dividend Income

The trend of dividend income falling down in August continued this year as we rake in $155 vs $225 from last month. In August 2015, I received $41.98. This year income increased by $112.54, or 268.08%.

total 2016 dividend income

Sure enough as we predicted last month, this August marks the first time the portfolio has generated $1,000 within one year’s time. After 8 months, the portfolio has generated $1,129.65

$1,129.65 works out to 65% of our $1,750 goal.
lifetime dividend income

I’d like to keep track of my lifetime dividends as it will always be the largest number I can attribute to dividend income, and ultimately is all the passive income I’ve generated from the beginning of this portfolio to now. It’s a great chart to display exactly what you could accomplish when you save your earnings and invest in dividend growing stocks.

After 17 months of receiving dividends and 18 months of investing, I’ve generated over $1,600 in passive income. After August 2016, my record is now $1,673.09 in dividend income that I earned from having the foresight to invest my money in income generating assets. The great thing about this is that even if I stop investing now, that money will continue to flow into my bank account every month without me lifting a finger, and what’s more is that it will even grow as time goes on considering I took the time to invest in dividend growing companies with proven track records.

How was all of my fellow investors’ August 2016? Any new positions? Dividend Raises? Dividend Cuts? Looking forward to September? 

Bank of Nova Scotia

Scotiabank (BNS) raises dividend by 2.8%

Dividend Raises

Scotiabank reported third quarter net income of $1,959 million compared to $1,847 million in the same period last year. Diluted earnings per share were $1.54, compared to $1.45 in the same period a year ago. (scotiabank.com)

In addition to reporting a 6.06% increase in net income Y/Y, BNS announced a quarterly dividend raise from $0.72 to $0.74, a 2.78% increase.

Dividend Income increased 0.18%

Considering the Dividend Beginner portfolio contains 50 shares of BNS, my annual income from BNS has increased by $4.00. My 12-month forward dividend income has increased from $2,205.34 to $2,209.34, an increase of 0.18%. My income from BNS accounts for 6.70% of my annual dividend income. I’m very comfortable with my exposure to BNS and would not be opposed to adding to my position, despite it being my largest bank investment.

While a $4.00 increase in annual dividend income seems quite low, think about how it would require an investment of $100.00, yielding 4.00% to generate $4.00 in dividend income. That’s the equivalent of getting one to ten hours of your life back, depending on your wage.

Before Net Increase After
Annual Dividend Income $2,205.34 $4.00 $2,209.34
Monthly Dividend Income $183.78 $0.33 $184.11
Percentage Increase 0.18%
RBC Logo

Royal Bank of Canada hikes their dividend 2.5%

Dividend Raises

On August 24th, the

Royal Bank of Canada (RY on TSX and NYSE) today reported record net income of $2,895 million for the third quarter ended July 31, 2016, up $420 million or 17% from a year ago and up $322 million or 13% from last quarter. In addition, today we announced an increase to our quarterly dividend of $0.02 or 2% to $0.83 per share. (rbc.com)

However the net income above includes a $235 million after-tax gain on the sale of their home and auto insurance business (RBC General Insurance Company).

Royal Bank of Canada net income up 17% from a year ago

If we strip the gain from the sale away from their net income for a more organic perspective, RBC generated net income of $2,660 million, up $185 million or 7% from one year ago. That’s still a great number though, in consideration of all the fear around Canadian banking linked to the oil patch. It seems like the worst is behind us and the banks may be picking up – but we have yet to see oil come up in a significant way and the Canadian housing market is in bubble territory.

Dividend Income increased 0.09%

As stated, RBC has increased their quarterly dividend from $0.81 to $0.83, a 2.5% increase.

Considering the Dividend Beginner portfolio contains 25 shares of RY, my annual income from RY has increased by $2.00. My 12-month forward dividend income has increased from $2,203.34 to $2,205.34, an increase of 0.09%. My income from RY accounts for a very safe 3.76% of my annual dividend income.

While a $2.00 increase in annual dividend income seems quite low, think about how it would require an investment of $50.00, yielding 4.00% to generate $2.00 in dividend income. That’s the equivalent of getting one to five hours of your life back, depending on your wage.

Before Net Increase After
Annual Dividend Income $2,203.34 $2.00 $2,205.34
Monthly Dividend Income $183.61 $0.17 $183.78
Percentage Increase 0.09%
Exchange Income Corp. is a Monthly Dividend Superstar

Maxed Out my Industrials Exposure with EIF.TO

Purchases

On August 9th, I added 42 shares of Exchange Income Corp. (TSX: EIF) to The Dividend Beginner’s portfolio. EIF.TO was reporting earnings on the market close of that day. I figured the results would have been good and took the risk. Net earnings were up 29% Y/Y with a payout ratio of 54% while free cash flow increased 13%; yet the stock price cratered. I’m not worried at all as I have a long time horizon and really enjoy partaking in the business.

I purchased the shares for $34.80, with a trading cost of $6.95 for a total cost basis of $1,468.55 with CIBC Investor’s Edge.

This is the second time I am purchasing shares in EIF, as it was a position I wanted to beef up. EIF is now the second largest position in my portfolio, second to Telus (TSX: T) by a couple hundred dollars. I first bought EIF for it’s generous dividend yield & monthly payouts as well as to increase my exposure to the Industrials sector and away from Financials and Energy.

EIF Now Makes up 8.74% of the Portfolio

Due to my increased stake in EIF, my exposure to the Industrials sector has grown by 3.8%. The financials exposure has come down to 27.4% of my portfolio, bolstered by the recent good earnings coming from the Canadian banks. Energy is now at 21.3%, while the rest are around or below 10%. Sector balancing will be an activity I focus on as I continue to build my portfolio.

Investment Diversification

Dividend Income increased 3.99%

Before Net Increase After
Annual Dividend Income $2,118.86 $84.48 $2,203.34
Monthly Dividend Income $176.57 $7.04 $183.61
Percentage Increase +3.99%

 

dividend income july 2016 report

July 2016 Dividend Income

Dividends

July was the most pathetic month of investing for The Dividend Beginner. It’s the first time since I began this journey that I did not allocate capital to the markets. While I didn’t notice anything to be much of a buy, I also did not search as much as I usually do and took it easier for the month as I found I was spending too much time doing research and writing and less time living.

While there were no investment activities whatsoever for July, the portfolio continued to pump cash into my accounts which are piling up as I sit on the sideline. The real horror is that my dividend income did not increase at all this month and is a real slow-down in our process. However, considering I’ve still saved the cash – we can make up for this at a later date when equities are looking a little more rosy.

Summary of June Investment Activities

Throughout July, I’ve purchased:

  • nothing

None of my holdings increased their dividends. That’s unfortunate.

None of my holdings reduced their dividends. Great news!

Keep reading

dividend income june 2016 report

June 2016 Dividend Income

Dividends

As some of you may have noticed, I didn’t post last month and missed reporting on my June investment activities. Considering I want all of this information spread across the blog to keep myself accountable and to keep track of progress, here it is. I will be posting for July this month as well as soon as I get a chance to write.

June was by far the weakest month for me in terms of annual dividend income growth through the entire year so far. It’s in part due to the stock I purchased having a yield much lower than my usual investments. On the bright side, I have been building up a very large cash reserve due to being generally uninterested in the vast amount of stocks on the market as of late.

Summary of June Investment Activities

Throughout June, I’ve purchased:

One of my holdings increased their dividends:

None of my holdings reduced their dividends. Great news!

Keep reading

Magna International

Brexit Wrecked Magna International Stock, so I Bought Some

Purchases

On June 24th,  I added 30 shares of Magna International (NYSE: MGA) to The Dividend Beginner’s portfolio. Brexit managed to completely cave the stock as the corporation had just recently announced plans to build a 225,000-square-foot aluminum casting facility in Telford, U.K., that it said would create up to 295 jobs.

I purchased the shares at a $48.63, with a trading cost of $6.95 for a total cost basis of $1,465.85. The stock has pushed lower since then but I believe it’s a fantastic opening for a long-term position in this high-quality company which has been one of the top stocks in our monthly stock lists for a few months in a row.

Portfolio Diversification

My position in MG accounts for 3.08% of my portfolio value, and increases my exposure to the Industrials sector to 11.4%, which is about where I’m satisfied with it being as opposed to a few months ago where it was a pittance. If I were to increase my Industrial exposure at this point, I’d probably add to EIF.TO for the high yield in monthly payments and incredible metrics.

I still have no positions in Basic Materials, Consumer Staples, Healthcare, or Technology. This needs to be remedied soon as I’ve missed a humongous run up in precious metals (basic materials) for the year, after dropping Goldcorp Inc. after their latest dividend cut – I was fed up with their lack of shareholder appreciation.

My exposure to the Financial sector has finally fallen below 30%, as I continue to try my best to find stocks outside of this sector (it is one of the largest proponents of the TSX).

Investment Diversification

Keep reading

Stock Market Review

Weekly Stock Market Review

Review

Welcome to the Dividend Beginner’s Weekly Stock Market Review, where you readers can see all of my new blog posts at a glance and decide which ones peak your interest for further reading.

I also took the time to mark down all the interesting articles related to finance, investing and economics for my readers. So go make yourself a nice warm cup of coffee and get to reading, learning, and making money!

Dividend Beginner’s Posts

Dividend Beginner’s Stats

  • Capital Gains: – $235 (-0.55%)
  • Dividend Income: + $67.88
  • Total Return: – $167.12

– $167.12 stock market return

This past week the Dividend Beginner portfolio dropped by $167.12 in capital gains, which amounts to a -0.55% weekly return. The portfolio also generated $67.88 in dividend income through AD, ENF, EIF, IPL, WCP, AAR.UN, PLZ.UN, D.UN, DRG.UN.

In total, the Dividend Beginner portfolio generated a passive $167.12 weekly loss.

For a 40-hour work week, that’s a loss of $4.18 per hour.

Keep reading

Telus or Bell

Telecom Stocks: Telus vs Bell

Stock Analysis

Telus is the second largest holding in the Dividend Beginner portfolio. Bell is a new interest of mine.

Telus is one of the few stocks I’ve come across in the Canadian markets that fits all Five of the Dividend Beginner’s stock picking criteria.

I’ve purchased shares in Telus three times over the past year, and it currently accounts for 9.5% of my total portfolio value. That’s also my entire exposure to the telecommunications sector, which is one of my favourite sectors. After all, cell phones and mobile plans are basically requirements in today’s society – every one and every new person will need at least one cell phone going forward.

Keep reading

Canadian Stock Watch List 2016

Stock Watch List for June 2016

Watch List

As we watch the market rise and fall, sometimes we see a big drop – the perfect opportunity to push some capital into the market and make some dividend growing investments. However, when this happens, many will watch and become lost in the vast amount of opportunities and potential investments. Which one is the best fit? Which one has the greatest expected dividend growth? These exact queries are the reason it’s so incredibly useful to make or follow a stock watch list every month, so when opportunities present themselves in abundance you know where to put your money.

Keep reading

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Disclaimer

My publishings on dividendbeginner.com references an opinion and is for information or entertainment purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. I am not responsible for any decisions you make concerning finances, taxes, or investments. You must perform your own research and always take caution when extending capital.