February 2016 Dividend Income
Another month in the books. It’s been a much less active month in the Dividend Beginner portfolio as I’ve spent a little less time trading and more time thinking about where I want to take my investments. I’ve updated my Stock Portfolio page to include a more up-to-date list of my investments; they are now tracked through Google Finance and will be updated every 5 minutes throughout trading days.
I’ve also calculated my sector allocation, included in the stock page, and I’m not very happy with it – though it isn’t a huge deal with the size of my portfolio. I believe it’s time to shy away from Financials with a roughly 35% exposure to the sector and start building up in other areas.
Regardless, it’s been another successful month with February adding 6.39% to my annual dividend income despite weathering a couple more dividend cuts. I’ve even made my first stock sale and am excited to reallocate the capital in a much healthier company which will make up for the reduction to my annual income throughout this month and then some.
Summary of February Investment Activities
Throughout February, I’ve purchased:
- 43 shares of Inter Pipeline Ltd (TSE: IPL) at $23.20 (Annual Dividend Income +$67.08)
- 30 shares of National Bank of Canada (TSE: NA) at $35.18 (Annual Dividend Income +$64.80)
Two of my holdings increased their dividends:
- Wal-Mart (NYSE: WMT) 2% Dividend Raise (Annual Dividend Income + $0.72)
- Royal Bank of Canada (TSE: RY) 2.53% Dividend Raise (Annual Dividend Income + $2.00)
Two of my holdings reduced their dividends:
- Dream Office REIT (TSE: D.UN) 33% Dividend Cut (Annual Dividend Income -$33.30)
- Goldcorp Inc. (TSE: G) 66.67% Dividend Cut (Annual Dividend Income -$10.40)
One of my holdings was sold to recuperate capital:
Annual Dividend Income Update
Unfortunately the dividend cuts and stock sale all added up to a loss of $48.90 in my annual dividend income, which ate greatly into the increases due to newly invested capital this month. The $1, 255.35 which was recuperated from the sale of my Goldcorp shares could make up for this loss by investing in a stock which yields around 4%.
Despite the loss in dividend income, I’ve realized a net increase of $85.70, which is averaged out to $7.14 per month, and comes to a 6.39% increase in annual income. Not too bad, all things considered this month! However, it does pale in comparison to my January 2016 statement, where I added a total of $272.41 annually / $22.70 monthly to my passive dividend income.
|Jan 2016||Net Increase||Feb 2016|
|Annual Dividend Income||$1,340.20||$85.70||$1,425.90|
|Monthly Dividend Income||$111.68||$7.14||$118.83|
February 2016 Dividend Income
|Non-Registered Taxable Account|
|Tax-Free Savings Account|
After hitting over $100.00 for the first time last month, February’s dividend income is less than exciting, but I’m working on it! Thanks to my investments this month, I’m getting very close to receiving minimum $100.00 per month going forward. The snowball grew slowly this month.
Compared to last year’s February 2015 passive dividend income of $0.00, I’m not doing too bad! I’m slowly approaching the 1-year mark and it’s a pretty significant difference. It’s hard to stay calm when you see what you can do when you set your mind to it. It’s also difficult to sit around waiting for capital to invest to increase your dividend income, but slow and steady often wins the game of dividend growth. Do the research. It’s important.
Another month into 2016 and it looks like I’ve achieved 2/5ths of my 2015 yearly passive income goal. It’s going to be a prosperous month. I still haven’t set a goal for 2016 passive income though, I’ve realized earlier this month. I will definitely get to that soon. I’ve recently gotten much more deep into the nitty-gritty’s in an attempt to optimize my dividend income stream.
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 dividend 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.
How was all of my fellow investors’ February2016? Any new positions? Dividend Raises? Dividend Cuts? Looking forward to March?