Dividend Income - January 2019

|
Includes: AAPL, CAH, EMRAF, TD, TRP, TU
by: Dividend Earner
Summary

My January 2019 dividend income is $1,939.36.

The year is already bringing some dividend increases.

My dividend yield is 2.62%, but many of my holdings provide a dividend growth at or above 10% annually.

I predict a roller-coaster year for the markets, but remember you are planting the seeds for later, and roller-coasters create opportunities. In fact, my purchases, as you will see, were all from opportunities.

I shared investment lessons I have learned, and a new one is that within the first year of purchasing a stock, there will be a 50% chance you are up or down. Remember the following quote; it's critical to manage your emotions about your portfolio and the journey to financial independence.

In the short run, the market is a voting machine but in the long run, it is a weighing machine. - Benjamin Graham

If you are retired or near retirement, I would expect you have a ladder strategy for accessing cash over a three-year rolling window to avoid being hit by a market swing.

Stock Trades

Since we entered 2019, all investors received $6,000 in contribution room for their TFSA, and I was ready for both accounts. As I hinted, I have bought Toronto-Dominion Bank (NYSE:TD) [TSE:TD] on sale, and it represents 7% of my portfolio for now.

  • TFSA Account 1: $6,000 in TD Bank
  • TFSA Account 2: $6,000 in TD Bank

I have added money to my non-registered account and Computershare holdings. I started regular contributions to my two Computershare holdings. Telus (NYSE:TU) [TSE:T] is monthly and TransCanada (NYSE:TRP) [TSE:TRP] Pipeline is quarterly.

  • Non-Registered: Added to Emera (OTCPK:EMRAF) [TSE:EMA]
  • Computershare: Added to Telus
  • Computershare: Added to TransCanada

I can confirm with my data that holding shares through Computershare over a discount broker generates a higher rate of return over time as more fractional shares compound.

I made an opportunistic switch and dropped Cardinal Health (NYSE:CAH) and bought more Apple (NASDAQ:AAPL) in our RRSP account.

  • RRSP: Sold Cardinal Health
  • RRSP: Added to Apple

Sector Diversification - January 2019

I added industry diversification to highlight how companies within a sector can still be very diversified. The Toronto Stock Exchange (TSE) is very heavy in financials and energy, and it's important to learn to diversify within those two sectors.

As you can see, I am fairly overweight in the financial sector, but once you break my industry down, you can see it broken down into banks, asset management, credit services and insurance which have very little risk overlap.

Dividend Income

My January 2019 dividend income is $1,939.36. The year is already bringing some dividend increases. You can see below that the January income is up $450 for the month. I do not expect to have many $2,000 months, but I should break it.

Keep in mind my portfolio is built for growth and not retirement income. My dividend yield is 2.62%, but many of my holdings provide a dividend growth at or above 10% annually.

Dividend Income - January 2019

Disclosure: Please note that I may have a position in one or many of the holdings listed. For a complete list of my holdings, please see my Dividend Portfolio.

Disclaimer: Please note that this blog post represents my opinion and not an advice/recommendation. I am not a financial adviser, and I am not qualified to give financial advice. Before you buy any stocks/funds consult with a qualified financial planner. Make your investment decisions at your own risk - see my full disclaimer for more details.

Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.