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. 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 our any investment strategy.
If you’re interested in seeing November’s post click here.
Well, we’ve made it to the end of 2022. I don’t know if it’s due to our age or the fact that we’ve had our second child this year but 2022 absolutely flew past!
It was a great year in so many ways for us – as mentioned we had baby FIC2.0 in May and Mrs. FIC has been off on maternity leave since. Given that the baby and the maternity leave make for uphill battles on the financial front (though totally worthwhile) we’re more than pleased that we were still able to make some really solid headway this year.
Let’s get into the numbers:
Dividends Received: $1,689.53
Some of these changes included totally cutting our Altria (MO) position after it served it’s purpose for the year – as well as trimming some Canadian holdings that got larger than intended like POW and MFC. We reallocated a lot of these funds back into Apple and Microsoft which we had sold at the end of last year and are hopeful to ride these two stocks back up in 2023.
With the move from some very high yielding stocks of +5% yields into two tech giants yielding ~1% naturally the income takes a hit, but we’re perfectly okay with that.
Now, let’s look at our year to date:
Dividends Received YTD: $17,482.50
With the solid performance to round out the year our yearly total eclipsed the $17,000 mark!
As you can see above the income growth we experienced year over year was a whopping 60%, and while that’s likely not sustainable year over year it’s a great feat to pull off this far into our journey. Here’s to hoping we surpass the $20k mark in 2023.
Now onto the 12 month projection:
Dividend Projections: $19,031.89
Now here’s the painful part. If you followed along last month you’d see that we projected over $21k for rolling 12 months – but as mentioned we’ve now cut out MO and POW and trimmed MFC and reinvested into the low yielding Microsoft and Apple shares we’ve purchased over the last few months. It’s a move we like longer term but it does hurt to see the income loss.
At times we need to remind ourselves that it is all about total returns and to discipline ourselves when chasing yields. Another couple stocks we’ve been adding to heavily have been CNR.TO and ATD.TO and like most of our readers will know those too are low yielders but we believe they will outperform over the long run.
That is where we’ll leave off for this month, if you have any questions or comments feel free to reach out on our social media pages:
TWITTER: @FindependenceC1
INSTAGRAM: @FindependenceCanada
Thanks for stopping by,
FIC.