Dividend Income Update - June 2024

                 

The month of June 2024 is another month of dividend income landing in my accounts. 

Due to becoming debt free, I changed my pay myself model. Starting the beginning of August 2021, I am paying myself 30%, just like before. This will now consist of 24% to investing, and 6% to savings.  The investment portion is going to my TFSA. Any money left over at the end of the month, I put towards investing on top of the money allocated from paying myself first. Hopefully, I can keep this up!

Update on paying myself first. At the start of August 2022, I now pay myself 35%.  This will consist of 25% to investing and 10% to savings. 

At the start of January 2024, I will now aim to allocate 27% to investing and 10% to savings. 

Note: All the dividends and totals below are in Canadian Dollars

I received a total of $1067.79 in dividend income for the month of June 2024. This represents a  39% increase  from 3 months ago and a 59.7% increase  year over year.

The dividend from Enerplus contributes to the large increase from both 3 months ago and year over year.  Enerplus Corporation has been acquired by Chord Energy  of the United States.  Enerplus paid its normal dividend plus a second dividend as part of the merger.  

I received dividend / distribution income from 15 different companies.

I received $0.00 in option premiums within my investment accounts in June 2024.

Meta Platforms had a dividend payment of $5.00 USD.  After the 15% withholding tax, the dividend payment is $4.25 USD.  My brokerage account is said up to pay my stocks in CAD dollars, so the $ 4.25 USD is then converted to CAD dollars. 

Below is a visual of my dividend totals for the last 5 years.

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Most of my dividend income comes from my margin account.  As more investments and DRIPs are made inside TFSA, the percentage of dividend income for the TFSA is increasing.  

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Next, I will show the percentage of total income for each position.

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In the pie chart, dividends percentages came in 1.6% (TTNM), REI.UN (0.9%), MTL (0.6%), and META (0.5%).

In first half of 2023, I received $3872.59 in dividends. In first half of 2024, I received $5302.92 in dividends. This is an increase of 36.93% YTD in 2024 over the same period in 2023. 

The graph below shows my total dividend income, as per the blog, since 2012. 

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I will update my dividend income tab with the new amount. I will include my option premium income also. It is great to see money from passive income sources deposited into my brokerage account every single month.

Note: Any activity in my RRSP account is not included in these totals.

How was your dividend income for June 2024?

Disclosure : Long all mentioned securities

DISCLAIMER

I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.

Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.

Portfolio Update - June 2024

 The month of June 2024 involved the Bank of Canada reduced the interest rate from 5% to 4.75%.  That means businesses or consumers with line of credit, variable rate loans and variable rate mortgages will have lower payments going forward.  

The Bank of Canada's interest rate next announcement will be on July 24.  

The most recent CPI (Consumer Price Index) in came at 2.90%.  The Bank of Canada's inflation target is approximately 2% inflation.  So, we might not see the interest rate reduced on July 24.

In the United States, the election of the next president is underway.  It appears that the current president and the person running for the democrats, Joe Biden, appears to be developing medical problems.  These medical problems, including probably developing dementia, will mean unable to serve due to medical reasons. 

This will have  a ripple effect across the world and will affect the markets.

The S&P500 was up 4.12% over the past month.  

The S&P TSX Composite Index was down 0.24% over the past month.

Portfolio Activity

Margin Account Activity

There has been no activity in this account during June 2024.   

TFSA Activity

On June 11, I purchased 170 units of Riocan REIT at $16.80 CAD per unit for a total cost of $2861.20 including commissions.  The ticker symbol is REI.UN and trades on the Toronto Stock Exchange.  Currently, Riocan pays a dividend of $0.0925 CAD per unit monthly, or $1.11 CAD per unit annually.  The yield on cost for this purchase is 6.60% .

This purchase adds $188.70 CAD to my annual dividend income.

Shares Purchased Via DRIP

5 shares of T.TO @ $20.34813 for a total cost of $101.74 (TFSA)

1 unit of KMP.UN @ $17.0235 for a total cost of $17.02 (TFSA)

1 share of BEPC.TO @ $28.57792 USD for a total cost of $39.15 CAD (TFSA)

1 unit of SRU.UN @ $21.93071 for a total cost of $21.93 (TFSA)

1 unit of BEP.UN @ $25.24204 USD for a total cost of $34.58 CAD (TFSA)

1 share of MFC.TO @ $35.05174 for a total cost of $35.05 (TFSA)

7 shares of TTNM.TO @ $2.2335 for a total cost of $15.63 (TFSA)

2 units of BPF.UN @ $16.0135 for a total cost of $32.03 (TFSA)

I have some other positions with the DRIP turned on but might not have enough of a dividend to purchase a whole share. 

My Enbridge position directly with the transfer agent is set up to DRIP.  Around November 2018, Enbridge stopped their DRIP program.  If Enbridge decides to start a DRIP, then my shares will start to DRIP again automatically.  

Dividend Increases

There was no dividend increases in June 2024

Dividend Decreases

There were no dividend decreases in June 2024. 

Summary: 

As of July 6, 2024, the total value of the portfolio is $226101.47 CAD. This is a 1.478% decrease over last month's total.  

The portfolio is estimated to produce an estimate $11573.81 CAD in dividend income over the next 12 months. This is an increase of $190.66 CAD , or 1.675%. Some of the dividends in the Canadian stocks section are paid in US dollars, which are converted to Canadian dollars.

Googlesheets is still not operating properly.  So, I had to manually enter the market value for the REITS, BEP.UN, BPF.UN, and AW.UN. 

 

Please Note: Positions in Enerplus Corporation (ERF.TO), Restaurant Brands International (QSR.TO) , Intertape Polymer Group (ITP.TO), Brookfield Renewables Corporation (BEPC.TO), and Algonquin Power and Utilities (AQN.TO)  pay dividends in US dollars. Brookfield Renewables Partners (BEP.UN) pays distributions in US dollars. My investment tab spreadsheet displays the Canadian dollar equivalent within 15 to 20 minutes of real time. 

Disclosure: Long aforementioned stocks

DISCLAIMER

I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice. Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.ir financial situation and tolerance for risk.