Month: January 2017

December 2016 Dividend Income

Dividends

So the year 2016 has come to an end and so does tracking the year. I’ve greatly improved the way I track all of my investment purchases, dividend raises, and dividend income and growth this year. I know exactly how my investment journey has benefited my passive income cash flow, and ultimately, my net worth and sustainability in relation to expenses.

This past month I’ve finally boosted my dividend income to an average of over $200 a month. It took 22 months to get to this point but it’s become practically clock work to me now and is very feasible for me to continue this journey.

The writing makes it a little more difficult and takes by far the most time, but I get a lot out of it myself and it forces me to think a lot of my decisions over as I’ve forced accountability on myself by sharing this with all the readers. If you’ve been a dedicated reader on the blog here, I truly thank you for making this all possible up to now. Thanks to you, I’ve recently organized to renew the web site for a 3-year period in 2017.

Best of luck to everyone in 2017, I hope the market continues to roar forward and our dividend income can collectively grow and we’re all one year closer to financial independence.

Summary of December Investment Activities

Throughout December, I’ve purchased:

One of my holdings increased their dividend.

None of my holdings were sold to recuperate capital.

None of my holdings reduced their dividends.

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Apple Technology

My First Tech. Investment: Apple (AAPL)

Purchases

On December 28, I initiated a position in Apple Inc. (NASDAQ:AAPL). I purchased 12 shares of AAPL for $116.87 each, with a trading cost of $6.95 for a total investment of $1,409.39 USD.

Interestingly enough, this was my one and only U.S. stock purchase for the year of 2016. I converted a bit more of my CAD to USD at the same time because I need some more geographic diversification to my portfolio, as well as the fact that the U.S. market has much larger corporations which address a niche simply not available for purchase through the Toronto Exchange.

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TransAlta Renewables

Attaining over $200 a month thanks to TransAlta Renewables (RNW)

Purchases

On December 23rd, I added 110 shares of TransAlta Renewables Inc. (TSE: RNW) to The Dividend Beginner’s portfolio. This time around I paid $14.15 per share, whereas I first invested in RNW in May for $12.32 a share.

Renewable energy in Canada has a good deal of tax subsidies and with energy becoming more expensive again, it will be worth it to continue investing in these technologies. I like TransAlta Renewables as it does this, and stands under a more mature parent company, TransAlta Corporation where it receives many drop-downs. In essence, it could be classified as a yieldco at this point, just like my previous investment in Enbridge Income Fund Holdings.

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Enbridge Income Fund

Scooped up More Enbridge Income Fund Holdings (ENF)

Purchases

On December 19th, I added 43 shares of Enbridge Income Fund Holdings. (TSX: ENF) to The Dividend Beginner’s portfolio.

With Trump taking the reins soon and interest rates going up again, I’ve modified my approach a little bit, as I look into sectors which may benefit as a result. According to CIBC,

If history is any indicator, should U.S. rates continue to rise steadily, as anticipated by CIBC Economics, then the cyclical sectors – technology, energy, consumer discretionary, industrials & materials – should fare far better than defensive sectors – consumer staples, telecom, health care & utilities.

While I have not yet decided whether I want to increase my exposure to oil development, I thought that ENF would provide a much less risky attempt at gaining some income from this environment.

This is the second time I invest in ENF, as it’s a nice way to extract very decent income on a monthly basis from a great parent company, Enbridge. I’m not so much a fan of the metrics that ENB boasts, but do like where the company is going. So, for the time being, I parked some money into ENF.

Yield on cost lowered to 5.76%

Considering I paid $34.80 per share of Enbridge Income Fund Holdings, I scored a yield of 5.36%, paid out monthly.

I first bought 50 shares of ENF in March for $30.01, which was a yield on cost of 6.22%. Factoring in my transaction costs, I now have a total cost basis of $3,010.80 for 93 shares. With the annual dividend of $1.866, my shares bring in $173.54 of income. All in all, this equals a total yield on cost of 5.76%.

Dividend Income increased 3.50%

Before Net Increase After
Annual Dividend Income $2,295.24 $80.24 $2,375.48
Monthly Dividend Income $191.27 $6.69 $197.96
Percentage Increase +3.50%

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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.