“Dividends have been a key and underrated part of North American markets’ total returns over the decades. As the British used to say: ‘Milk from the cows, eggs from the hens. A stock, by God, for its dividends.’ ”
David Chilton, The Wealthy Barber Returns
My retirement plan involves collecting an increasing stream of dividend income to help pay for retirement expenses and inflation. While I am a ways off from reaching my long term financial goals, I find it encouraging to track and witness my monthly dividends grow over time. From the quote above it sounds like the British are fans of this too.
May 2015 dividend income
No dividends received in the month.
Line of Credit Interest – $159.05
June 2015 dividend income
June Canadian Dividend Income
- Suncor Energy [TSE:SU Trend Analysis] – $84.00
- Canadian Western Bank [TSE:CWB Trend Analysis] – $118.80
Total June Canadian Dividend Income – $202.80
June US Dividend Income
Total June US Dividend Income – $142.80
Line of Credit Interest – $164.34
I’m in the process of building up my portfolio and currently I don’t have any companies that pay dividends in February, May, August, and November. Because of this I didn’t have any dividends paid out in May. I recently purchased Home Capital Group Inc. [TSE:HCG Trend] and Exxon Mobil [XOM Trend], but that will add more dividend income to March, June, September and December. My first dividend payment from these companies will come in September as I purchased them too late for the payment in June. As the portfolio grows and I add new positions I expect the dividend income to smooth out from month to month. In the meantime I’m not too worried about it as I’m not currently living off the dividend income, but instead reinvesting the dividends in new or existing positions.
Since my last dividend income update IBM increased their dividend 18% and Canadian Western Bank increased their dividend 5% for the second time in the past year. I saw an increased payment from both these companies in June. Always nice to see that the plan is moving along as expected.
What do you think of my progress so far?
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