Throughout these updates we will go over the previous month’s dividend income, as well as our rolling 12 month projected dividend income and our progress towards our goal of having $50,000 in annual passive income. (More on our goals and the tax advantages of Canadian dividends in future posts). For reference, I received my first ever dividend payment in December 2017, and I immediately realized that they needed to be a prominent part of my any investment strategy.
August was another steady month for us, one of those months which will be a bit of a lagger moving forward. We’d like to up the income for the quarterly months of February, May, August, November but aren’t going to buy any stock just for the sake of upping those particular months. We ended up seeing dividend income of $322.52 which is tremendous progress year over year for our portfolios. As you’ll see in the table below that $322.52 received was an increase of 357% over last August’s total of just $70.59.
Keep them gains coming.
You’ll notice a new row added to this table, namely the interest we’ve been receiving from our high interest savings accounts. We felt this interest earned deserved to be a part of this as it’s not so different from say a bond distribution.
Now for our favourite table of the bunch: the projected 12 month dividends receivable. This is the one that motivates us to keep making contributions into our portfolios even on those months where there are 100 other things you’d rather be spending the cash on. This was the first month we’ve broken into the $6,000 club, which officially means we are averaging over $500 per month moving forward!
Perhaps the highlight of the month (every month really) was seeing some of our favourite stocks raise their dividends. We received raises from CIBC and Scotia Bank this month by modest ~3% rates, these banks have a tendency to raise every 6 months or so.
Now let’s compare that YoY figure we mentioned earlier in this post:
As mentioned 357% is tremendous growth for us, it will be interesting to see how much of these gains we’ll see YoY for 2020 as it’ll obviously become harder and harder to grow at the same rate as our portfolio grows, but we’ll try our best.
An honourable mention to throw into this post is that we also do have some rental income in the amount of $1,600 per month and have been asked about this on our Instagram page before, but seeing as we still have a mortgage on the property there really isn’t much of a “passive income” coming in from the property just yet so we will not be including this rental income in these posts moving forward.
That about sums up this months passive income update, tune in next month as September is looking like a good month with contributions from our biggest hitters (Enbridge, Canadian Utilities and Fortis to name a few). Check back to see if we’re able to set a new record!
Thanks for stopping by and as always feel free to leave comments or questions below or contact us on Instagram @FindepenenceCanada
FIC.