Dividend Income: April 2019

Dividend Earner

Dividend Earner

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2 min read Affiliate Disclosure

These days, the word recession is not so much on investors’ mind. Exuberance comes to mind but if you had cashed out, you would have missed on a rally and if you follow the earnings, you would know that it’s not the gloom recessions that has been talked about.

What do you make of it all when you are used to seeing a recession every 7 years on average through a economic cycle? In my opinion, you ignore it. I will repeat that if you are retired or about to retire, you should have 2 or 3 years of cash on hand to handle a recovery and if you are accumulating, staying invested is the best strategy. Investing in strong businesses should be the foundation of your dividend investing strategy. There will be pullbacks and then more run ups for the strong businesses.

In the short run, the market is a voting machine but in the long run, it is a weighing machine.
– Benjamin Graham
on the basis that the Vanguard S&P 500 Index ETF outperforms Metro and provides a similar income yield. The transition away from its investment in Alimentation Couche-Tard to purchase Pharmacy Jean-Coutu is taking time to show results.
  • I completed my position in Mastercard.
  • Before you ask, I hold US stocks in all accounts. I am breaking all the income tax rule guidelines you read about. Why is that? US stocks outperform Canadian stocks. The name of the game is not to minimize taxes but to make money. When you do that math, paying some taxes on foreign investments still leaves you ahead of investing in a Canadian stock in many cases. See the performance of the S&P500 vs the TSX below. The graph should speak for itself.

    SP500 vs TSX

    Dividend Income

    Comparing ourselves to others can sometimes help or distract, however it’s up to the investor to decide on the next steps. With that said, here is the total value of my TFSA which I started investing the maximum every year since the TFSA was offered. My TFSA is at $117,000.

    My April 2019 dividend income is $1,959. My April dividend income is now 20% higher than last year for the same month. Dividend growth plays a key role and since I aim for Dividend Ambassadors, I expect good growth over time to come from my holdings.

    Dividend Income - April 2019