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Happy 2013!  I thought it would be a good idea to start off by talking about my TFSA and Dividend Income goals for 2013.

My total contribution room (checking on the CRA website) is something ridiculous thanks to Harper adding the extra $500 for 2013 in contribution room.  Because I sold for a gain a few years back with the income trusts I held, I have had increased contribution room.  My total contribution room is $9450 for 2013.  This is a little steep for me but hopefully I can at least achieve the minimum $5500 for the year.  I think my OCD tendencies though will want me to max out the TFSA so I can start fresh for next year at $5500.

With so much contribution room, I think I will round out the ETFs (XDV, CPD, and CYH) that I hold since they are pretty much at the same cost that I purchased them for (which pretty much reinforces my interest in dividend stocks versus ETFs but I don’t think Teacher Man will appreciate my  comment 😉 ).

I think in terms of dividend income goals, I think that adding another $400 or so of dividend income for the year might be feasible?  As long as I contribute $9000 or so in the TFSA (estimating the 5% annual yield I have been getting on average).

What do you guys think I should do?  Go for the ETFs or add another dividend stock?  Or, even more exciting, do both? 🙂

Article comments

Bet Crooks says:

I’d go with another dividend stock, but I’m not sure which one to suggest. I like KBL but it’s really highly priced now compared to when I bought it. I’m trying to think of others like that one, that tap a sector of the market you’re not already in. (KBL is linens: washing uniforms and sheets for hospitals, things like that.)

I’m not familiar with all of your picks. Are any of them REITs? I have some HR.UN that is a combination of interest/ROC that has been nice and steady. It’s not on a low cycle right now either, though.

Banks are usually good.If you can hold them for at least 5 years, I don’t think they’re terribly risky either. This is a TFSA though, so I’m not sure if you need lots of liquidity or not.

Happy (?!) investing!

Teacher Man says:

I get so mad at the fact I can’t use my TFSA because of ridiculous USA taxation rules. Since I’m sure Mr. Flaherty checks out this blog regularly – Sir, please get some sort of reciprocal agreement with the States since the TFSA is patterned on their 401K anyway!

As far as dividends vs ETFs Young, haven’t your ETFs paid you out some dividends as well? I’ll stand behind my boy Andrew Hallam on this one!

Add more to XDV if unsure or if the price is right for you, buy a bank stock 🙂

Alex says:

i would try to aim for a lower yield and thus lower target net additional dividend income, in exchange for more long term dividend growth. for a young person, making sure the dividend stream is increasing each year (without counting your additional funds) and outpaces inflation is more important than raw present day dividend yield.