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

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

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

  • How to Estimate Future Dividend Growth (Part 2 of 2)

    sensitive noise / obvious 2

    milos milosevic / Foter.com / CC BY

    In the first part of this two part series I went over six different factors that affect dividend growth. Today I’m going to use TELUS and Caterpillar as examples of how I use these different influences to estimate future dividend growth.

    I like to invest in undervalued dividend growth stocks with strong competitive advantages. I have a fairly strict investing criterion that I use to select dividend growth companies. One of my many investing criterion is annual dividend growth of 8% or more. Finding past dividend growth rates is fairly easy and this can help predict future dividend growth, but there is more to it than just past rates.

    Companies with a public dividend policy

    In some rare instances a company will make estimating dividend growth easy by announcing their dividend policy. A good example would be TELUS, which recently announced that it will target a payout ratio of 65% to 75% and annual dividend growth of 10% for the next three years. They plan on increasing the dividend twice

    … Continue reading How to Estimate Future Dividend Growth (Part 2 of 2)

    How to Estimate Future Dividend Growth (Part 1 of 2)

    sensitive noise / obvious 2

    milos milosevic / Foter.com / CC BY

    In this two part series I am going to go over how you can estimate the future dividend growth of a company. In this first part I’ll go over six different factors that affect dividend growth. In the second part I’ll go over how to use these influences to estimate future dividend growth with some examples.

    Factors that affect dividend growth

  • Earnings Growth
  • If a company is not making money or unable to grow earnings, then it is unlikely they will be able to continue future dividend increases for long. This is a fairly obvious influence, but an important one. If the company isn’t growing don’t expect sustained dividend growth.

  • Payout Ratio
  • The payout ratio tells you what percentage of earnings are paid out in dividends. Generally speaking the lower the better. If a company is only paying out a small portion of its earnings as dividends say 30%, then they will have money left over to pay for future dividend increases, pay for other growth projects, pay

    … Continue reading How to Estimate Future Dividend Growth (Part 1 of 2)

    Looking for Dividend Growth in the Canadian Communication Industry: Shaw Communications

    [ Tell Me Your Secrets ] Blue Telephone : Paris Charles De Gaulle Airport : France

    || UggBoy♥UggGirl || PHOTO || WORLD || TRAVEL || / People Photos / CC BY

    The Canadian Communications Industry is made up of only a few key players. Today I’ll be looking into Shaw Communications and seeing how its future expected dividend growth compares to some of its competitors, namely Telus, Rogers Communications and BCE.

    Dividends

    A quick look at the Canadian Dividend All-Star List tells me that Shaw Communications has increased their dividend for 10 consecutive calendar years in a row. For a Canadian company this is an impressive streak. Telus has a streak of 9 years, Rogers Communications has a streak of 8 years, and BCE has a streak of 4 years. All of these companies have increased their dividend within the last year so when the year is over I expect them to move up one year on the list. For Shaw Communications this would make 11 consecutive years of increasing dividends.

    Dividends have been steadily increasing over the years which are good signs, but it looks like the significant dividend growth occurred

    … Continue reading Looking for Dividend Growth in the Canadian Communication Industry: Shaw Communications

    Can Past Dividend Growth Rates Be Relied Upon To Predict Future Rates?

    The Wizard

    seanmcgrath / People Photos / CC BY

    If you look at my retirement goals you’ll see that I want to have a growing stream of dividend income to support me in retirement. In order to meet my goals I’m looking for a dividend growth rate (DGR) of 8%. This is an ambitious rate in my opinion. Don’t get me wrong, I think it is entirely possible, but it is not an easy thing to achieve. My early retirement dreams are tied to dividend growth, so being able to predict future dividend growth is very important to me.

    I use a lot of historical averages in my analysis of dividend stocks, so I was excited to discover an article on Seeking Aplha: Dividend Growth Rates: Using The Past To Estimate The Future by Dividend Growth Machine that studied the correlation between past dividend growth rates and future rates.

    The study looked at the 10 year DGR of US companies from 1991-2001 and compared them to the 10 year DGR from 2001-2011. The

    … Continue reading Can Past Dividend Growth Rates Be Relied Upon To Predict Future Rates?

    The Lesser Known Canadian Dividend All-Stars

    That was supposed to be going up, wasn't it?

    rednuht / Foter.com / CC BY

    When scanning the Canadian market for dividend growth stocks there are two common places that investors start:

    • The S&P/TSX Canadian Dividend Aristocrats
      • To be included in the list the company must be common stock or income trust listed on the TSX and in the S&P Canada Broad Market Index (BMI).
      • They must have increased ordinary cash dividends every year for 5 years, but can maintain the same dividend for a maximum of 5 consecutive years within that 5-year period.
      • The company must have a minimum C$ 300 million float-adjusted market cap.
    • Canadian Dividend Achievers™ Index
      • “Constituents must be incorporated in Canada, trade on a major exchange in Canada and must have paid increasing regular cash dividends for five or more consecutive years. The average daily cash volume must exceed CD$500k in CAD$ in the November and December prior to reconstitution.”

    These two lists are a great starting point and when I started creating the Canadian Dividend All-Star List this is where I started. The Canadian Dividend All-Star List is a Microsoft Excel list

    … Continue reading The Lesser Known Canadian Dividend All-Stars