Dividend Income – December 2015

Dividend Income - December 2015Happy New Year! 2015 is behind us and I have finally reached $1,000 in dividend income per month! December is the month that made it happen. The third month per quarter is now a $1,000 dividend month. I just need to get the other 2 months in the quarter there but I won’t invest based on when dividends are paid.

Dividend Income

I know many of you follow my dividend income report and I missed November as I was really busy with work and life. It is getting back to normal and will be able to continue with my regular updates and post. During November 2015, my dividend income was $958.28. A little short of $1,000.

My December dividend income is $1,029.91. With little extra money added during the year, dividend increases with my current holdings have provided the boost. I have gotten to the point where most of my investments are buying at least one share per dividend payment which is putting my money back at work.

Dividend Income - December 2015

My total dividend income for the year is at $10,563.88. It does not yet average to $1,000 per month but it’s getting there. My current prediction for 2016 without added money is at $11,540.84. If I can manage to invest some more early in the year I can probably reach $12,000 for 2016.

I don’t have any specific investments planned for 2016. I will still focus on my sector allocation to ensure a balanced portfolio. Using the sector allocation strategy can be challenging sometimes as you have to focus on sectors that are out of favors but that’s how you take emotions out of the process and find a way to buy low. My investment focus will probably be towards Canadian companies due to the currency exchange but I will probably be able to initiate a position in a US company this year from cash dividends and some US currency.

As you can see below, there are 4 sectors needing some extra funds: energy, communication, basic materials and consumer cyclical. Consumer cyclical is tough on the Canadian market. I have not found many companies matching my 7 investment rules. Basic materials are also hard as I am purely just invested in potash with POT and AGU. I have no interest in gold or other minerals as I cannot see consistency nor do I understand what drives the need for the other materials. Potash is needed for agriculture which we need for food.

My investment process with a portfolio of around 30 stocks consists of starting with quality stocks with consistent dividend growth. Choosing a 10-10 stock is a good way to start. With a portfolio in place, I then focus on rebalancing when appropriate. I don’t just keep on adding stock but rather grow each stock which also allows for the stocks to re-invest the dividends. At the core of my process is Canadian Dividend Performance List where I can see how potential investments stack against each other using my scoring formula.

Sector Allocation - December 2015

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, 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.
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