Welcome to my October 2015 Dividend Income update. This month’s dividend income was the best ever, coming in at a phenomenal $1,073.90! January, April, July and October are really my “power” months for dividend income because these are the months when my largest holdings pay out. I didn’t plan it that way. Ideally you would want a similar monthly dividend income so you could easily budget the monthly expenses.
Building Another (Passive) Stream of Income
October has been another busy month for us. We had some work done on the rental property to update the electrical and had to buy some appliances too. We managed to get one side rented out for mid October and the other side rented for December 1st. It’s been a lot of upfront work
to acquire and update the rental property but now that the work is done, it should be a reliable stream of income for years to come.
Monthly Investing Activity
On the investing front I’ve been buying the Canadian banks. I continue to make extra cash purchases in my DRiP account to buy more Bank of Nova Scotia. I also continued with my longstanding plan to save and invest automatically. I continue to invest in low-cost index funds in our retirement accounts and I also continue to make automatic share purchases in my DRiP accounts. This month, I bought more shares in Bank of Nova Scotia (BNS), Bank of Montreal (BMO), Telus (T) and TransCanada Corp (TRP).
The great thing about being a dividend investor is that all of my dividend income is automatically re-invested. Every month this income buys more shares in my favourite companies that will, in turn, produce even more monthly income for me. This is how compounding works and is why it’s such a powerful force…what Einstein called the “Eighth Wonder of the World”!
Monthly Passive Dividend Income
October has been an excellent month with regard to dividend income. In fact it’s been the best month yet, coming in at a solid $1,073.90! This month’s dividend income has grown by 352% from that of October of 2014 ($304.74). Now a large part of that increase came from investing my own personal savings, while the remainder was due to the regular reinvestment of my dividend income and from companies raising their dividend payout.
So far this year we have received $6189.73 in passive dividend income. Our annual dividend income goal is $7,500 so we are now 82.5% of the way there. Here is the breakdown on the numbers:
Bell Canada Enterprises (BCE) – $26.82
Telus (T) – $3.30
KP Tissue Inc. (KPT) – $93.96
RioCan REIT (REI) – $4.08
TransCanada Corporation (TRP) – $13.22
Bank of Nova Scotia (BNS) – $466.00
Canadian Imperial Bank of Commerce (CM) – $23.17
Toronto Dominion Bank – $323.85
TransAlta (TA) – $3.14
ETFs and Mutual Funds
iShares S&P TSX Canadian Preferred Share Index ETF (CPD) – $53.26
iShares S&P TSX Capped REIT Index ETF (XRE) – $37.25
Vanguard Canadian Short-Term Corporate Bond Index ETF (VSC) -$14.72
Vanguard Canadian Short-Term Bond Index ETF (VSB) – $11.13
Total = $1,073.90
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