Dividend Income – July 2014

Dividend Income - July 2014Another month of passive income coming my way. Without much thought, the income flows in. In fact, I got more shares in 7 companies in total. That’s compound growth at work. That’s what I call having my money work for me.

Over time, compound growth will do magic on a portfolio. Stock appreciation is one aspect of growth, but growing your shares without adding more money is another way to grow a portfolio.

Dividend Income

I’ll have to wait a little while for another record-breaking month and satisfy myself with dividend income of $609.19 for now. I have some cash that is not invested yet and I am simply waiting to have a little more to make a purchase by either adding to one of my positions or taking a new position. I tend to be reluctant to take a new position as I try to not have too many companies to track.

Related: How many stocks should you own?

With that said, I own the top 6 banks but don’t really consider them as separate companies all that much unlike the telecoms. Banks in Canada pretty much all do the same thing and have the same business structure. They differ in how many clients they have and their exposure to international market which makes for a good diversification. They all have a dividend yield around 4% and a payout ratio around 50% for the most part.

As you have probably noticed if you are a regular reader, I am mostly adding to existing positions. I am trying to reach 10K across many stocks as I have identified it as my next holding target per stocks. It will grow from there too as I believe it’s better to keep the number of decent around 30 to 40 and increasing my holding size rather than adding more and more stocks.

Dividend Income - july 2014

Readers: Do you have a target size per portfolio size?

  • Less than 50K = How many stocks? How much per stocks?
  • 50K – 100K = ?
  • 100K – 200K = ?
  • and so on

I am in the 200K + range with around 40 stocks targeting 10K per stock now.

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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