2016 Dividend Income Update

DGI&R Quarterly Dividends & Interest

In 2016 I made $4,039.79 in Canadian dividends and $1,266.04 in US dividends for a Canadian equivalent total of $5,706.77. Canadian equivalent interest payments were $3,889.50 which resulted in net dividends of $1,817.23 which is almost double the $957.05 in net dividends I received in 2015.

DGI&R Quarterly Dividends & Interest

*In 2014 I liquidated most of the portfolio to put a large down payment on a condo Ms. DGI&R and I bought and moved into. This is why dividend income drops off in the second half of 2014. Since then, I’ve been slowly building back the portfolio.

Why is there interest on my dividend income graph?

We purchased the condo with a re-advanceable mortgage, which is basically a traditional mortgage and a secured line of credit combined. As the mortgage portion is paid off, the credit limit on the line of credit portion increases. I’ve been paying off the mortgage aggressively and I use the line of credit to invest with when I find a reasonably cheap dividend growth stock to buy. That’s why you see the interest in yellow growing over time along with dividends. There is also some margin interest included here too as

… Continue reading 2016 Dividend Income Update

Annual Canadian Dividend All-Star List Update Coming Soon & 2016 Popular Posts

Gingerbread Dragon

My Gingerbread Dragon.

I hope everyone is enjoying the Holidays so far. I’ve got about a week off from work and I’m really looking forward to some relaxing time with the family over the Holidays. On the theme of relaxing I thought I would write a cop-out article on my most popular posts in 2016 ;). This is an annual tradition for most bloggers, lol. So without further ado here they are…

Most Popular Page Canadian Dividend All-Star List

The Canadian Dividend All-Star List is a free excel spreadsheet of Canadian companies that have recorded 5 or more years of consecutive dividend increases. The list is updated monthly, contains an abundance of stock information and is used by most as a screening tool for Canadian dividend growth stocks. This page gets more page views than my home page and continues to be the most popular part of my blog. When I first started this blog I thought about what I could do that would add real value to my readers and this was one of the ideas I had. At the time I used (and continue to use) David

… Continue reading Annual Canadian Dividend All-Star List Update Coming Soon & 2016 Popular Posts

8 Canadian Dividend Growth Stocks With No Long Term Debt

8

When I wrote Financially Strong Canadian Dividend Growth Stocks & Their Credit Ratings I looked at Canadian companies with a dividend streak of 5 of more years and Bank of Montreal [BMO.TO]: a total of 89 companies. While compiling that list I was surprised to discover that there were 8 companies that didn’t have any long term debt. In this article I’m going to take a quick look at each of these 8 companies to determine if any warrant more in-depth research. We’ll start with the company with the longest dividend streak and work our way down from there. 1st on the the list is…

Pason Systems Inc. [PSI.TO]

“Pason Systems Inc. is a provider of data management systems for drilling rigs. The Company offers solutions, which include data acquisition, wellsite reporting, remote communications, and Web-based information management, enables collaboration between the rig and the office. It operates through three geographic segments: Canada, the United States, and International (Latin America, Offshore, the Eastern Hemisphere and the Middle East). Its Electronic Drilling Recorder (EDR) provides a complete system of drilling data

… Continue reading 8 Canadian Dividend Growth Stocks With No Long Term Debt

Is low to moderate dividend growth expected for dividend growth utility stocks?

Utility Pole / 電柱

As a dividend growth investor there are four Canadian utility stocks that I’d consider investing in: Canadian Utilities Ltd. [TSE:CU Trend], Fortis Inc. [TSE:FTS Trend], Atco Ltd. [TSE:ACO.X Trend], and Emera Inc. [TSE:EMA Trend]. Atco Ltd. owns Canadian Utilities Ltd. and has some other activities, so you could say there are really only 3 ½ companies I’m interested in. Canadian Utilities Ltd, Fortis Inc. and Atco Ltd. have been able to increase dividends in each calendar year for over two decades, while Emera Inc. has a dividend streak of 8 years. These are impressive streaks, but what has me worried with some of these utility stocks is their long term dividend growth rates.

Typically I try and target annual dividend growth of 8% or higher, but for utility companies this may not be realistic due to the regulated nature of their industry. Regulated utilities allow for a more reliable income stream, but it can be difficult to get consistent high dividend growth from these companies over the long term. A good example would be Fortis Inc. which has a 5 year average annual dividend growth

… Continue reading Is low to moderate dividend growth expected for dividend growth utility stocks?

14 Canadian Dividend Growth Companies with Consistently High Earnings Growth

Earnings

I’m always on the lookout for dividend growth companies that have long growing dividend streaks, wide economic moats and strong financial strength. I plan to buy these companies at cheap valuations and utilize the growing dividend income to become financially independent. One characteristic of a good dividend growth company is the ability to pay increasing dividends because it is also increasing its earnings. Dividend growth without earnings growth is not a sustainable long term trend. As I plan to invest and hold on to these companies for a very long time, it is important to me that they are able to regularly make more money to support the increasing dividend. With that in mind I decided that I would try and identify companies in the Canadian Dividend All-Star List that have been able to increase their earnings per share (EPS) at a consistently high growth rate over the past decade.

Related: Canadian Dividend All-Star List Free Download Page

To start with I used Morningstar annual EPS data for a decade found in its Key Ratio tab for each company in the January 31, 2015 version of the Canadian

… Continue reading 14 Canadian Dividend Growth Companies with Consistently High Earnings Growth

How To Combat Inflation With Dividend Growth And Protect Your Purchasing Power

Financial Crisis / Finanzkrise

As you know from my past few posts I’ve been reading Lowell Miller’s The Single Best Investment: Creating Wealth with Dividend Growth. One thing that surprised me a bit was his comments about inflation. The author pointed out that the 60 year average inflation rate in the United States is 4.1%. The book was written 8 years ago in 2006 and has a US focus, so I decided to do some of my own research to see if this figure was still accurate.

What is inflation?

Before I dive into the results, I want to explain what inflation is. Investopedia defines inflation as

“The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.” […] “As inflation rises, every dollar will buy a smaller percentage of a good. For example, if the inflation rate is 2%, then a $1 pack of gum will cost $1.02 in a year.”

The Bank of Canada website has an inflation calculator that you can play around with to get an idea of how inflation affects your purchasing power. Here are a few of my results:

… Continue reading How To Combat Inflation With Dividend Growth And Protect Your Purchasing Power

Financial Strength: A Key Element in High Quality Dividend Growth Stocks

Lifter

“Financial strength is the key requirement of a high-quality stock. [...] Remember, you’re buying a piece of a business here, one that you want to live with for a long, long time.” (Miller, 2006)1

I recently read Lowell Miller’s The Single Best Investment: Creating Wealth with Dividend Growth. I would make this book required reading if I were teaching a course on dividend growth investing. What I like about this book is that it gives specific criteria to look for when trying to find a good dividend growth candidate. While the version I read was written in 2006, a lot still applies today.

The concept of the book is that high quality + high current dividends + high growth of the dividend = high total returns. A key element of a high quality company is financial strength. Today I’ll be sharing a few of the author’s different ways to identify financial strength.

Low debt

As a long term investor it is important to me that the company still exists in 10 years, 20 years, 30 years … well you get the idea. For a company to stand the test of time they have to be able

… Continue reading Financial Strength: A Key Element in High Quality Dividend Growth Stocks

I’m Married!

ring / yüzük

Well it is official, I’m married! For those of you that have planned a wedding before you’ll understand why I haven’t posted very much in the past few months… I’ve been busy. With the honeymoon over I’m hoping to get back into a more regular posting regime.

Creating Wealth with Dividend Growth by Lowell Miller, READ IT!

Our wedding was a great success and I couldn’t be happier, but we were both ready to relax by the time we landed in Hawaii for our honeymoon. We decided on the Big Island because we wanted to go night diving with Manta Rays (Great dive, I highly recommend it). Beyond the dive we had no other concrete plans for our 10 days in paradise. We ended up doing more activities than I initially expected, but a large part of the trip was relaxing on the beach or by the pool. During this time we actually had time to read again, what a novelty! Being the investing nerd that I am, I read Lowell Miller’s, The Single Best Investment: Creating Wealth with Dividend Growth (2nd edition).

For those of you that haven’t read this book, I highly recommend it. I

… Continue reading I’m Married!

Hey Sun Life, Where’s My Dividend Growth?

Cuidando o campo

I’m sorry to say, that it doesn’t look like dividend growth from Sun Life Financial is going to happen for a few years. Because of this I decided to sell my shares. My investing style is to buy quality dividend growth stocks at attractive prices and collect the increasing stream of dividend income in order to eventually support my retirement expenses. Most of the time I try and hold onto a stock for a long time, but there are some situations where I consider selling. One of these considerations is stalled dividend growth. I sold my shares of Sun Life Financial because I am a dividend growth investor, not a dividend investor (note the key word that’s missing: growth).

Related article: In What Conditions Would I Consider Selling A Stock?

Dividend history

The last dividend increase from Sun Life Financial came with the dividend recorded in February 2008 when it increased the quarterly dividend from $0.34 to $0.36. Since then the dividend hasn’t changed.

If we look at the dividend history going back to 2001 we

… Continue reading Hey Sun Life, Where’s My Dividend Growth?

A Year In Review: Portfolio Additions, Dividend Growth, and Target Buy Prices

Santa-eop2

Merry Christmas everyone. I hope everyone is having a good holiday. With the end of the year coming up, a lot of people spend time to reflect on the year. It’s taken a few years to develop my dividend growth strategy, so I thought it would be a good idea to take a look at my portfolio and go over the past year.

First I thought I’d look at my stock purchases in the year. I have conservative stock targets for buying shares, which means I don’t buy shares a lot. This resulted in only four stock purchases in 2013.

  • I purchased Intel for $20.50 in February.
  • I purchased Suncor for $31.84 on June 10th.
  • I purchased CH Robinson Worldwide for $54.25 on June 24th.
  • I … Continue reading A Year In Review: Portfolio Additions, Dividend Growth, and Target Buy Prices