Dividend Income: November 2022

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Dividend Earner

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3 min read Affiliate Disclosure

Investors can really be irrational. One day it’s gloom and doom and the other it’s all positive after some earnings and federal news …

That’s investing for you. None of that has changed how the businesses you invest in operate with the exception of the interest rate impact to borrowing.

Be Clear & With Intent

I find many investors aren’t sure about their investment decisions. Part of it is due to a lack of understanding of the investment and its purpose. Here are methods I have identified over the years that help me invest with confidence.

wdt_ID Dividend None Low Growth (< 6%) Medium Growth (> 6%) High Growth (> 10%) Total
2 None 4.50 0.00 0.00 0.00 4.50
3 Low Yield (< 2%) 0.00 2.77 0.00 42.78 45.55
4 Medium Yield (> 2%) 0.00 0.00 12.17 5.83 18.00
5 High Yield (> 4%) 0.00 0.00 26.05 0.00 26.05
7 Aggressive Yield (> 6%) 0.00 3.38 2.52 0.00 5.90

One word of caution for DIY investors is that investing on your own doesn’t mean you obsess on doing it for free. There are data points such as the dividend growth and the Chowder Score that you cannot get for free anywhere. Getting access to investment data is going to make a big difference.

The above view on your investments are portfolio management tools. They are meant to help you select the right investments to meet your goals and assess your risks.

Stock Trades

I have no cash on the side, everything is invested.

Here is how I view my accounts.

  • Non-Registered is a Dividend Income Account
  • RRSP is a Dividend Growth Account
  • TFSA is a Dividend Growth Account

For the record, my TFSA account is usually full and my RRSP account is also full through my employer plan. I only can add to my taxable account. I also technically cannot add to my spouse account …

Income Account Trades

The focus of this account is to have a yield above 4% with moderate dividend growth.

I do not DRIP shares anymore in this account. I let the cash add up to $1,000 and then I add shares to the investment of my own choosing.

No fency strategy here and I cannot tell you if it’s better to DRIP or not … Part of my reason is to not let the banks grow too much as I have quite a bit in the banks.

Dividend Growth Account Trades

These accounts are more focus on total returns while leveraging dividend growth investing as a strategy.

  • I invested dividends received into XQQ ETF in my RRSP account. XQQ is the NASDAQ 100.

Portfolio Management

While I do track my sector allocation, the industry exposure is what I look at. For more on sector diversification, read my thinking on it here.

It should be telling what my exposure to the Canadian market really is, and it’s invested in 12 stocks. Yes, 12 Canadian dividend stocks make up my portfolio, and a lot of it in the financial sector.

The intention of the charts below is not only to show my exposure to industry and sectors but to show the country the investments come from as well.

Portfolio Industry Allocations November 2022
Portfolio Sector Allocations November 2022

Dividend Income

My November 2022 dividend income is $3,823.

The year is almost done and so far this year I have earned $28,740 in dividend income. Here is how the annual breakdown looks like with December estimated

Spouse ASpouse B
RBC Taxable$21,176$193
RRSP$8,093$4,455
TFSA$2,260$3,586
Total$31,529$8,234

Don’t spend time balancing your monthly income. It should not matter as you should have a year in cash as a safety net. Plan your retirement safely as not having cash on hand can have a major impact to your retirement.

If you don’t plan to have some cash then you have to be ok with potentially selling shares. It’s OK too as some people use the 4% withdrawal approach and do just that.

Dividend Income November 2022