May 2016 Dividend Income
This month’s dividend income saw north of $100 for the third time in my investing career. I also have forecasted over $200 in dividend income for the month of July. I want to say it’s compounding, but it’s really the aggressive investing style I’ve been able to keep together. Compounding will come very soon though, as the income piles up. The Dividend Beginner saw two new investments in extremely high yielding, monthly dividend paying, small- and mid-cap companies. Both companies were analysed throughout the month, with Exchange Income Corp. yielding close to 7%, and Corus Entertainment yielding above 9%.
Summary of May Investment Activities
Throughout April, I’ve purchased:
- 75 shares of Exchange Income Corp. (TSE: EIF) at $32.18 (Annual Dividend Income +$150.72)
- 105 shares of Corus Entertainment (TSE: CJR.B) at $12.35 (Annual Dividend Income +$119.70)
One of my holdings increased their dividends:
None of my holdings reduced their dividends. Great news!
Annual Dividend Income Update
With the opening of two new positions this month, I’ve managed to increased my dividend income by a sweet 15.39%. I’m really loving the months where I can pull double-digit dividend returns as I’m really pushing the total yearly income up. This will get harder as time goes on, but for now I’ll sit back and enjoy the returns.
Exchange Income Corp. is an addition to the core portfolio as I need some Canadian industrial exposure with a nice, juicy yield. Corus Entertainment is more of an income generating play, with a bit more risk as the CRTC interferes with their operations constantly; and usually doesn’t really make anyone happy.
Telus, my second-largest holding, continues to plug through the increases every 6 months. Never a let down on the dividend front, but the share price has really been stagnant since I purchased a year ago. I’m considering adding more at a later date, or opening a position in Bell. What do you guys think?
YTD, my 12-month forward dividend income has now increased 95.51%. By next month I’ll have doubled my dividend income in 6 months!
|Apr 2016||Net Increase||May 2016|
|Annual Dividend Income||$1,809.24||$278.42||$2,087.66|
|Monthly Dividend Income||$150.77||$23.20||$173.97|
May 2016 Dividend Income
|Non-Registered Taxable Account|
|Tax-Free Savings Account|
May was an alright month for dividend income. It’s still one of the Top 3, but I’ve added a good amount of monthly dividend income due to my investments – thus, going forward, I don’t expect to ever have a monthly dividend income below what it is now. The new minimum will be around $140 – $150; with the average creeping up to $200.
We now have the second YoY comparison in the DB books. In May 2015, I received $43.03 in dividend income. Now, in May 2016 I’ve received $127.78. This is an increase of $84.75, and accounts for a 196.96% YoY increase.
After 5 months of 2016 I’ve surpassed what I made over 9 months last year. I’m still a long way from my 2016 goal of generating $1750 in passive income and already nearly halfway through the year, but I’m confident that I’ll have no issue hitting it out of the park. As the end date creeps up, so does my passive 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 14 months of receiving dividends and 15 months of investing, I’ve generated over $1,000 in passive income. After May 2016, my record is now $1,126.58 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’ May 2016? Any new positions? Dividend Raises? Dividend Cuts? Looking forward to May?