Here we are in the 2nd quarter over, and have the year is through already! Time flies. In my last update (March 2015) I had just over $5500 of annual dividend income. Going through the changes to my dividend portfolio took a lot of concentration because of all the changes I made.
This quarter I have close to $5800 in annual dividend income. I would like to see if I can get $6000 in annual dividend income by the end of the year, which would give me a clean $500 a month in dividend income.
I also managed to keep the dividend payout to 4.50% (which is very close to the 4.51% last update) which is quite interesting.
If I had a million dollars in my dividend/ investing machine portfolio with a 4.5% annual dividend return, I would have $45000 in relatively unscathed-by-taxes income which would be a dream! Retirement here I come, LOL. I’ve got quite a ways to go for that, though!
Changes to the Dividend Portfolio
There were quite a few changes to the dividend portfolio, which included dividend increases, addition of dividend paying stocks, and rebalancing/ adding more shares.
The two that had notable dividend increases includes Sunlife (SLF.TO) which increased their dividend from $0.36 a share every quarter to $0.38 a share every quarter. This represents over a 5% increase in the dividend. I have 105 shares of Sunlife, and have owned them for a long time (since 2008 I believe).
The other stock that increased its dividend is Bank of Montreal (BMO.TO). BMO increased its dividend from $0.78 a share every quarter to $0.80 a share every quarter. This represents a 2.5% increase. I have 100 shares in Bank of Montreal.
Another major change was the decrease in the CPD shares (triggered a stop loss) and buying of ZPR (also preferred shares) in addition to re-balancing the non-registered portfolio and buying more VUS, VEF, ZDV, and CLF.
I added SNC Lavalin (SNC.TO) a Canadian engineering company that builds all over the world that has recently been priced very low because of recent issues and allegations of corruption. It pays a little over a 2% dividend and had a recent increase this year. I bought 25 shares and then 25 more shares. I also added National Bank of Canada (NA.TO) and bought 50 shares. It pays about a 4% annual dividend. I also re-bought Ensign Energy (ESI.TO), I just couldn’t stay away haha. It triggered a stop loss and I bought it at a lower price. The dividend for Ensign Energy is around 4.8%.
Finally I bought 50 more shares of REI.UN (RIOCAN REIT). I remember walking near a Canadian Tire in Vancouver and seeing the RIOCAN sign and fancy garbage can. At first I was annoyed that this particular Canadian Tire charges its customers parking (and heavily enforces the parking) on the rooftop whereas all the other Canadian Tires have complimentary parking. Then I realized that it was benefiting me because I have shares in REI.UN. Nonetheless I didn’t end up parking on the roof, haha.
If you want to make your own spreadsheet, check out my snazzy ‘step by step guide on how to make a dividend income spreadsheet‘.
Goals for the Dividend Portfolio
Before next dividend update in September, I plan to rebalance the exchange traded funds in my Tax Free Savings Account. I also plan to increase my annual dividend income to $6000 a year, which is an extra $200 in dividend income than what I have now. Hopefully it won’t be too difficult to achieve.
I might end up buying more Fortis (FTS.TO) (haha I seem to say that with each dividend income update) or more Husky (HSE.TO) since it’s dipping down again.
Again, I would love to buy more American stocks to add to my dividend portfolio but I am low on U.S. dollar cash.
For your eyes only… and et voila, here is my most recent dividend screenshot update for June 2015:
Readers, how has your dividend portfolio been doing?