Dividend Income – January 2016

With a new year comes new contribution room and I really wanted to have $5,500 ready to invest in my TFSA come January. Unfortunately, I could not manage to do that this year. Instead, I was able to start with $1,000 and decided to add it to Telus TSE:T based on its recent pull back and the need to top up my telecommunication sector. As for the rest of my contribution in my TFSA, I’ll have to invest the rest over the year. Even though I have all year and the following years to make the contribution, I really like to do it early in the year to have my money at work as soon as it’s allowed.

Dividend Income

All my dividends are currently re-invested and most of my stocks can buy back a share with the exception of the stocks in the $100 range. My money is always at work and it’s interesting to see how fast I can accumulate $500 in an account from the leftover dividend now. The re-invested dividend is my compound growth machine at work.

My January 2016 dividend income is $858.11. I don’t quite average to $1,000 per month but soon I will through diligent savings and stock selection. I purposely chose to say stock selection as opposed to investing as it’s easy to invest money, it doesn’t mean you will earn or make money from it though. Stock selection is more specific and while it appears complicated, it doesn’t have to be.

Dividend Income - January 2016

One stock on my watch list to add as a new addition is CCL Industries TSE:CCL.B in the consumer cyclical sector. It currently ranks 60 out of 112 stocks as an opportunity score and the lower score can be attributed to the following factors:

  • Value is up in the 52-week range
  • Yield is under 1%

Many investors write it off with the low yield but when you look at the dividend growth over the past 10 years, it tells a growth story and the same goes for its EPS. CNR is in a similar position in terms of yield and the reality is that after 20 years, the growth on the yield will be nice. CCL Industries is part of the 10-10 group with 10 years of dividend growth with a 10% average dividend growth rate over 10 years.

CCL 5 Year Growth

Are you having trouble choosing an investment? The markets have not been too kind and many stocks have dropped their dividends in the past year. In fact, 18 stocks out of 112 stocks I am tracking with the Dividend Performance List have dropped their dividends.

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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