Since September has now come and gone, I thought I’d post an article about a popular subject: dividend income! Although I’d like to expand my passive income into other areas, for now the bulk of my non-salary income comes from dividends. The great thing about dividend-income, over the long term, is that it has a tendency to keep growing and growing. Even though individual stock prices can fluctuate, sometimes by a lot, unless a company is truly in trouble, it’s unlikely their dividends will go down — that’s what makes longterm dividend investing so great.

Dividends I got this month

My total dividend income in September was a non-spectacular $70.68, which is little below my current monthly average of $88/month. That being said, at the same time last year, my total div income was a paltry $6.42! That means my dividend income grew by a whopping 1100% in just one year! As you can imagine, I’m really happy about this — and just goes to show what someone can accomplish with a little effort and discipline.

Name Amount
Fortis $18.75
Johnson & Johnson $13.19
Pizza Pizza $11.41
Manulife $19.43
Shaw $7.90

Total: $70.68 CAD

Dividend Increases

Another great part about longterm dividend investing is the possibility of dividend increases — and my portfolio saw one such increase in September from Fortis Inc. In this case, the company’s quarterly dividend was increased from $0.375/share to $0.40/share, which represents a total 6.7% increase. Although not as high as last year’s bump, it’s still  respectable amount and certainly beating inflation here in Canada (which generally wavers between 1 and 2 percent). According to my calculations, since I bought Fortis Inc. shares a little more than a year ago, the company has increased its dividends by over 17%!

Short term Plans

I wish I could say I was in a financial position to buy more stocks in the next couple of weeks, but a series of large expenses has meant my saving rate has been quite low as of late. That having been said, short of any unforeseen expenses, I should be back on track by November. I’m also expecting a modest windfall in the next couple of months which I’ll put almost entirely into my portfolio. As a result of my low savings rate, my yearly dividend amount is unlikely to change very much in the near future, but will hopefully pick up sometime between November and December. I can’t wait to start investing again!

What to expect in October

October should be a great month, since I’m predicting at least $100 in dividends – which is something that has happened only once already in my relatively short dividend investing adventure. Even if I miss the mark (due to fluctuating currency rates and foreign tax deductions), I should get a decent $90+ into my investment account, which again, would be above my monthly dividend income average.

Name Amount
Bell Canada $27.30
Coca Cola $16.13
Pizza Pizza $11.47
Shaw Communications $7.93
Telus $20.70
WSP Global $18.75

Total: $102.28 CAD

Conclusion

Although September was a modest month, I’m happy about where my portfolio is going. Even though I’ve only been doing this for a year, I’ve already seen a lot of growth in terms of both gains and dividends. A year ago I was making less than $10/month in dividends, whereas now I’m breaking the $100/month threshold, which although relatively small compared to others out there, is a psychological barrier that feels great to finally pass. I hope this inspires others out there who are also just starting out that real progress is possible with just a little effort.

If you want to look at my dividends/stock in more detail, feel free to check out my dividend page above.

Thanks for reading,

André