Dividend Income Update - October 2024

                     

The month of October 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 allocated 27% to investing and 10% to savings. 

Starting July 2024, I started allocating 30% to investing and 10% savings.

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

I received a total of $1451.79 in dividend income for the month of October 2024. This represents a 0.187% increase from 3 months ago and a 53.6% increase year over year.

I received dividends from 2 US stocks.  Chord Energy dividend was in actual US dollars.  The value above in the Canadian Dollar equivalent of the US dividend (minus the 15% withholding tax) using the exchange rate on the actual day the dividend hit my account.  For Meta Platforms, my brokerage converted the US dividend (minus the 15% withholding tax) to Canadian dollars. 

I received dividend / distribution income from 15 different companies.

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

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.  For the positions and their corresponding percentages missing from the chart below,  Riocan REIT (REI.UN) made up 1.8%  and Mullen Group (MTL.TO) made up 0.5% of the dividend income.  

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In first ten months of 2023, I received $7024.46 in dividends. In first ten months of 2024, I received $9755.61 in dividends. This is an increase of 38.88% 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 October 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 - October 2024

The month of October 2024 involved another Bank of Canada interest rate announcement.  On October 23rd, the Bank of Canada decreased the interest rate by 0.50%, or 50bps.  The interest rate now stands at 3.75%.  

(Source: Bank of Canada)

The decrease in the interest rate means the people payments will decrease for variable rate loans, mortgages and lines of credit.  

The lowering of the interest rate allows people to have more disposable income, with the hopes they go out and spend money to help the economy. 

Also, in Canada, the Bloc Quebecois provided a deadline of October 29 for 2 of its bills to be passed in the House of Commons.  The day as come and gone, and these 2 specific bills have not been passed.  The leader of the Bloc is now working with other opposition parties trigger and election in a non-confidence motion against the current government.

As of Nov 3, the federal government is still in power.  

South of the border, the US Election is coming up shortly to determine who will be next President of the United States.  The current President, Joe Biden, has dropped out of the race.

The S&P500 was up 0.51% over the past month.  

The S&P TSX Composite Index was up 1.20% over the past month.

Portfolio Activity

Margin Account Activity

There has been no activity in this account in October 2024.

TFSA Activity

On October 30th, I added 31 shares of Canadian National Railway (CNR.TO) at $152.90 for a total cost of $4744.85 including commissions.  Currently, Canadian National Railway pays a dividend of $0.845 CAD per share quarterly, or $3.38 per share annually.  The yield on cost of this purchase is 2.21%.

The yield on cost of 2.21% is 0.43%. or 43bps, above the stock's own 5 year average yield of 1.78%.

This purchase adds $104.78 CAD to my annual dividend income.  

During the month of October, my 108 units of A&W Royalties Income Fund were converted to 105 shares of A&W Food Services of Canada Inc and cash via a merger.  As part of this deal, I received $3.59 CAD cash in lieu of fractional shares.

Shares Purchased Via DRIP

1 unit of KMP.UN @ $19.6435 for a total cost of $19.64 (TFSA)

1 unit of SRU.UN @ $25.70378 for a total cost of $25.71 (TFSA)

3 share of AQN.TO @ $5.15385USD for a total cost of $21.29 CAD (TFSA)

1 units of BPF.UN @ $17.70152 for a total cost of $17.70 (TFSA)

2 shares of TD.TO @ $77.0244 for a total cost of $154.05 (TFSA)

1.150871 shares of BNS.TO @ $70.9376 for a total cost of $81.64 CAD (Margin)

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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

On October 21, TFI International (TFII.TO) increased their dividend from $0.40USD to $0.45USD per share quarterly, or from $1.60USD to $1.80 USD per share annually.   This is an increase of 12.5%.

I currently own 50 shares of TFI International in my TFSA.  This increase adds $10.00 USD to my annual dividend income.  This is equivalent to $13.92 CAD. 

 

Dividend Decreases

There were no dividend decreases in October 2024.  

 

Summary: 

As of November 3, 2024, the total value of the portfolio is  $249265.26 CAD . This is a 0.728% decrease over last month's total.  

The portfolio is estimated to produce an estimate $11851.50 CAD in dividend income over the next 12 months. This is an increase of of 153.52 CAD , or 1.312%. 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, and BPF.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.