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On April 26th, W. W. “W.W. Grainger, Inc. (NYSE: GWW) announced today that its board of directors voted to raise the quarterly cash dividend by 5 percent to $1.28 per share payable on June 1, 2017, to shareholders of record on May 8, 2017. Grainger has delivered 46 consecutive years of increased dividends.” (invest.grainger.com)

This is a position I have been re-evaluating for quite some time and am thinking of exiting. I am down around 20% due to a very bad reaction to their latest earnings release.

Dividend Income increased 0.04%

Considering the Dividend Beginner portfolio contains 5 shares of W. W. Grainger, Inc., my annual income from GWW has increased by $1.20 USD, from $24.40 USD to $25.60 USD. My 12-month forward dividend income has increased from $2,899.83 to $2,901.03, an increase of 0.04% (this is probably the lowest net dividend income to the portfolio so far). GWW accounts for 0.88% of my annual dividend income. 

While a $1.02 increase in annual dividend income seems quite low, think about how it would require an investment of $45.45, at a yield of 2.64% (GWW’s dividend yield on the day of the raise) to generate $1.20 in dividend income. That’s the equivalent of getting four hours of your life back, at Quebec’s minimum wage of $11.25.

Note: I use a 1:1 ratio when calculating dividend income for $CAD and $USD since it would be too complicated to constantly account for currency difference and it’s constantly changing. The portfolio only generates $120 USD annually with all other income being $CAD.

Before Net Increase After
Annual Dividend Income $2,899.83 $1.20
$2,901.03
Monthly Dividend Income $241.65 $0.10
$241.75
Percentage Increase 0.04%

The post W. W. Grainger’s 46th Consecutive Dividend Increase appeared first on The Dividend Beginner.

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On May 3rd, I added 33 shares of Exchange Income Corp. (TSE: EIF) to The Dividend Beginner’s portfolio.

I purchased the shares at $33.75, with a trading cost of $6.95 for a total investment of $1120.70.

This pushes my total cost basis for my collection of 150 EIF shares to $5,014.95 (includes commissions).

My last purchase was in August 2016, where I purchased 42 shares of EIF.

Originally I had opened this position in May 11 of 2016, with a starting 75 shares of EIF.

Yield on cost rounds out to 6.28%

The per share cost basis in this 33 share purchase round comes out to $33.96. With an annual dividend of $2.10, my yield on cost here is 6.18%.

In my first purchase of 75 shares, the per share cost basis rounds out to $32.27; yielding 6.51% on cost.

In my second purchase of 42 shares, the per share cost basis rounds out to $34.97; yielding 6.01% on cost.

Now with my combined 150 shares of EIF, my average cost basis comes out to $5,014.95, or $33.43 per share.

With an annual dividend of $2.10, my final yield on cost remains a juicy 6.28%.

Industrial exposure increased to 11%

Portfolio exposure to the Industrial sector has increased from 9.06% to 10.77%. Exchange Income Corporation now accounts for 8.6% of my overall portfolio, and is my largest holding by market value.

The positions I count towards my Industrial exposure are Exchange Income Corporation and W. W. Grainger.

Dividend Income increased 2.45%

My 33 new shares in Exchange Income Corp. add $69.30 to my annual dividend income, or $5.76 averaged per month.

Previously I earned $245.70 per year due to my 117 shares in EIF. This accounted for 8.68% of my overall dividend income.

Combining my new annual dividend income with my previous, I now earn $315 per year from EIF, accounting for 10.86% of my overall dividend income. This averages out to $26.25 per month, up from $20.48.

My 12-month forward dividend income has increased from $2,830.53 to $2,899.83, an increase of 2.45%.

Before Net Increase After
Annual Dividend Income $2,830.53 $69.30
$2,899.83
Monthly Dividend Income $235.88 $5.775 $241.65
Percentage Increase +2.45%

The post Exchange Income Corp. Flies to Top Portfolio Position appeared first on The Dividend Beginner.

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On May 2nd, according to Apple’s second quarter results, “The Board has approved a 10.5% increase to the Company’s quarterly dividend, and has declared a dividend of $0.63 per share of the Company’s common stock, payable on May 18, 2017 to shareholders of record as of the close of business on May 15, 2017.” (apple.com)

At the same time, they increased their share repurchase authorization to $210 billion from last year’s $175 billion, as they expand their capital return program to $300 billion.

Since they started the capital program in mid 2012, Apple has spent $151 billion in share repurchases, propping up their earnings per share. I’m a big fan of how much capital Apple returns to their shareholders in share buybacks and dividend increases.

Dividend Income increased 0.20%

Considering the Dividend Beginner portfolio contains 23 shares of Apple Inc., my annual income from AAPL has increased by $5.52 USD, from $52.44 USD to $57.96 USD. My 12-month forward dividend income has increased from $2,825.02 to $2,830.53, an increase of 0.20%. My income from AAPL accounts for 2.05% of my annual dividend income.

While a $5.52 increase in annual dividend income seems quite low, think about how it would require an investment of $324.71, at a yield of 1.7% (AAPL’s dividend yield on the day of the raise) to generate $5.52 in dividend income. That’s the equivalent of getting twenty nine hours of your life back, at Quebec’s minimum wage of $11.25.

Note: I use a 1:1 ratio when calculating dividend income for $CAD and $USD since it would be too complicated to constantly account for currency difference and it’s constantly changing. The portfolio only generates $120 USD annually with all other income being $CAD.

Before Net Increase After
Annual Dividend Income $2,825.02 $5.52 $2,830.53
Monthly Dividend Income $235.42 $0.46
$235.88
Percentage Increase 0.20%

The post Apple Announces a 10.5% Dividend Raise appeared first on The Dividend Beginner.

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The Dividend Beginner by Dividend Beginner - 10M ago

I return to growing my dividend income stream in a larger way this month with investments in very high-yielding stocks. I added $163, or 6% to my annual dividend income. I am getting very close now to an average of $250 per month; then moving on to $300.

April 2015 was the first month I ever received a dividend cheque, to the tune of $25. Two years later, and $262 have made their way into my brokerage account.

I am well on my way to my $3,000 dividend income goal for 2017.

Summary of April Investment Activities

Throughout April, I’ve purchased:

None of my holdings increased their dividend.

None of my holdings were sold to recuperate capital.

None of my holdings reduced their dividends.

Annual Dividend Income Update
Feb Net Increase Mar
Annual Dividend Income $2,661.71 $163.31
$2,825.02
Monthly Dividend Income $221.81 $13.61
$235.42
Percentage Increase +6.14%
YTD Increase +12.63%
April 2017 Dividend Income
Non-Registered Taxable Account
CNQ $11.00
T $31.20
WMT $9.18
ZWU $6.75
EIF $13.13
IPL $5.81
WCP $2.80
ENF $8.56
AD $16.20
BNS $20.52
Tax-Free Savings Account
T $16.80
RPI.UN $8.80
EIF $7.35
PLZ.UN $5.85
IPL $7.70
ENF $7.36
D.UN $5.63
DRG.UN $6.67
AD $14.18
BNS $17.48
RNW $19.07
HR.UN $5.06
CJR.B $15.20
Total
$262.30
Dividend Income Journey Year-over-year Dividend Income Growth

In April 2016, I received $166, and one year later my stocks have generated $262 in passive income. This year’s April income increased by $96, or 58% over last year’s.

April marks the third year I’ve received dividends into my account. Comparing this year’s dividend income to my first ever month, where I received $25, my income has increased 948%.

Total Dividends 2017


So far up until now, in 2017, I have accumulated $913 in dividend income. This is after one third of the year.

With a yearly dividend income goal of $3,000 for 2017, after April I am 30.4% of the way there with 33% of the year complete.

Total Dividends Lifetime

I’d like to keep track of my lifetime dividends as it will always be the largest number I can attribute to dividend income, and ultimately is all the passive income I’ve generated from the beginning of this portfolio to now. It’s a great chart to display exactly what you could accomplish when you save your earnings and invest in dividend growing stocks.

After 25 months of receiving dividends and 26 months of investing, I’ve generated above $3,000 in passive income. After April 2017, my record is now $3,312 in dividend income that I earned from having the foresight to invest my money in income generating assets. The great thing about this is that even if I stop investing now, that money will continue to flow into my bank account every month without me lifting a finger, and what’s more is that it will even grow as time goes on considering I took the time to invest in dividend growing companies with proven track records.

How was all of my fellow investors’  April 2017? Any new positions? Dividend raises?

The post April 2017 Dividend Income appeared first on The Dividend Beginner.

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On April 19th, I added 49 shares of Enbridge Income Fund Holdings (TSE: ENF) to The Dividend Beginner’s portfolio. I purchased the shares at $33.55, with a trading cost of $6.95 for a total investment of $1,650.90.

This pushes my total cost basis for my collection of 142 ENF shares to $4,661.70 (this figure includes comissions).

I previously bought 43 shares in December 2016.

I had also bought 50 shares in my first purchase of ENF over a year ago, in March 2016.

Yield on cost rounds out to 6.25%

The per share cost basis in this 49 share purchase round comes out to $33.69. With an annual dividend of $2.0532, my yield on cost here is 6.09%.

In my first purchase of 43 shares, the per share cost basis rounds out to $30.15; yielding 6.81% on cost.

In my second purchase of 50 shares, the per share cost basis rounds out to $34.96; yielding 5.87% on cost.

Now with my combined 142 shares of ENF, my average cost basis comes out to $4,661.70, or $32.83 per share. With an annual dividend of $2.0532, my final yield on cost is still a sweet 6.25%.

Utilities exposure increased to 23%

Portfolio exposure to the Utilities sector has increased from 20.88% to 23.10%. Enbridge Income Fund Holdings now accounts for 8% of my overall portfolio, and is my second largest holding behind Alaris Royalty Corp.

The positions I count towards my Utilities exposure are TransAlta Renewables Inc., Fortis Inc., Enbridge Income Fund Holdings and BMO Covered Calls Utilities ETF. 

For TransAlta Renewables and ENF, they could both really go into either Energy or Utilities but I believe they fit better into the latter for what they actually are.

Dividend Income increased 3.69%

My 49 new shares in Enbridge Income Fund Holdings adds $100.61 to my annual dividend income, or $8.38 averaged per month.

Previously I earned $190.95 per year due to my 93 shares in ENF. This accounted for 7% of my overall dividend income.

Combining my new annual dividend income with my previous, I now earn $291.55 per year from ENF, accounting for 10.32% of overall dividend income. This averages out to $24.30 per month, up from $15.91.

Before Net Increase After
Annual Dividend Income $2,724.41 $100.61
$2,825.01
Monthly Dividend Income $227.03 $8.38
$235.42
Percentage Increase +3.69%

The post Making Enbridge Income Fund My Second Largest Holding appeared first on The Dividend Beginner.

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On April 7th, I added 55 shares of Corus Entertainment (TSE: CJR.B) to The Dividend Beginner’s portfolio. I purchased the shares at $12.67, with a trading cost of $6.95 for a total investment of $703.80.

As you may notice this is a very small investment compared to my usual purchases of $1,500-$2,000. This is because I consider CJR.B to be a bit of a risk due to it’s industry of media content and with the rise in cable cutting. Since I already own a position of 105 shares, I just added a small bit to increase the position to a total cost basis of $2,007.50.

Yield on cost lowered to 9.09%

With the latest 55 shares I’ve purchased at a cost basis of $703.80, my yield on cost was 8.9%

In my first purchase of 105 shares for a cost basis of $1,303.70, my yield on cost was 9.18%.

Now with 160 shares, my average cost basis is $2,007.50, or $12.55 per share. With an annual dividend of $1.14, my final yield on cost is still a grand 9.09%.

Consumer Discretionary increased to 6.75%

Portfolio exposure to the consumer discretionary sector has increased from 5.59% to 6.75%.

I have only two positions which contribute to my exposure in this sector, which are Corus Entertainment and Wal-Mart.

Dividend Income increased 2.36%

My new shares in Corus Entertainment adds $62.70 to my annual dividend income, or $5.225 averaged per month.

Previously I earned $119.70 per year due to my 105 shares of CJR.B. This accounted for 4.50% of my overall dividend income.

Combining my new annual dividend income with my previous, I now earn $182.40 per year from CJR.B, accounting for 6.70% of overall dividend income. This averages out to $15.20 per month, up from $9.98.

Before Net Increase After
Annual Dividend Income $2,661.71 $62.70 $2,724.41
Monthly Dividend Income $221.81 $5.225
$227.03
Percentage Increase +2.36%

The post Buying Corus Entertainment, Yield of 9% appeared first on The Dividend Beginner.

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The Dividend Beginner by Dividend Beginner - 10M ago

There remains a lot to be desired of current market valuations, but this month around I enjoyed opening a new position in Richard’s Packaging, to increase the diversity of my portfolio and get back to making larger increases to my dividend income through investments after two purchases in low-yielding Apple stock.

This month also marks breaking through $3,000 in life time dividend income.

March marks a full two years of receiving dividend income from the stock market.

If we look over this period on average, having earned $3,050 in the two years I’ve received dividends has added $127 of cash flow through each of those months.

Going forward, I am now averaging $221 per month. A solid foundation has been set to build off.

Summary of March Investment Activities

Throughout March, I’ve purchased:

One of my holdings increased their dividend.

None of my holdings were sold to recuperate capital.

None of my holdings reduced their dividends.

Annual Dividend Income Update
Feb Net Increase Mar
Annual Dividend Income $2,552.11 $109.60
$2,661.71
Monthly Dividend Income $212.68 $9.13
$221.81
Percentage Increase +4.29%
YTD Increase +6.49%
March 2017 Dividend Income
Non-Registered Taxable Account
GWW $6.10
FTS $16.00
ZWU $7.02
WCP $2.80
IPL $5.81
EIF $13.13
ENF $8.56
AD $16.20
CWB $16.10
Tax-Free Savings Account
FTS $16.00
PLZ.UN $5.85
IPL $7.70
EIF $7.35
ENF $7.36
D.UN $5.63
DRG.UN $6.67
AD $14.18
RNW $19.07
HR.UN $5.06
CJR.B $9.98
Total
$196.57
Dividend Income Journey Year-over-year Dividend Income Growth

In March 2016, I received $98, and one year later my stocks have generated $197 in passive income. This year’s March income increased by $99, or 101% over last year’s.

After a two full years of receiving dividends I have no disappointments in the way my monthly income has grown. It will be exciting now to see what this third year of receiving dividends will have in store for me. With my cash hoard, I have no doubt the income can grow tremendously if the market reassesses its value.

Total Dividends 2017

With a yearly dividend income goal of $3,000 for 2017, after March I am 21.7% of the way there.

I’m very close to the theoretical mark line I should be at to hit that goal, and now that I hope to refocus again on higher-yielding stocks I don’t see anything really getting in my way.

Total Dividends Lifetime

I’d like to keep track of my lifetime dividends as it will always be the largest number I can attribute to dividend income, and ultimately is all the passive income I’ve generated from the beginning of this portfolio to now. It’s a great chart to display exactly what you could accomplish when you save your earnings and invest in dividend growing stocks.

After 24 months of receiving dividends and 25 months of investing, I’ve generated above $3,000 in passive income. After March 2017, my record is now $3,050 in dividend income that I earned from having the foresight to invest my money in income generating assets. The great thing about this is that even if I stop investing now, that money will continue to flow into my bank account every month without me lifting a finger, and what’s more is that it will even grow as time goes on considering I took the time to invest in dividend growing companies with proven track records.

How was all of my fellow investors’  March 2017? Any new positions? Dividend raises?

The post March 2017 Dividend Income appeared first on The Dividend Beginner.

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On March 15th, I added 80 shares of Richard’s Packaging Income Fund to The Dividend Beginner’s portfolio. I purchased the shares at $26.30, with a trading cost of $6.95 for a total investment of $2,110.95.

Reasons I bought Richard’s Packaging
  • Has a 1-year gain of 30%
  • Has a yield of ~5%
  • Pays a monthly dividend
  • Has increased the dividend for a consecutive 3 years
    • Just increased their dividend by 18% in March
  • Is continuing to make all-time highs
  • Provides exposure to the “Basic Materials” sector, of which I had none
  • 2016 payout ratio was 53% (richardspackaging.com)
    • Note that the distributions were return of capital (so I tax shelter this in my TFSA)
    • Management defines payout ratio as distributions and dividends declared over distributable cash flow
Dividend Income increased 4.13%

My new shares in Richard’s Packaging Income Fund add $105.60 to my annual dividend income, or $8.80 per month. RPI.UN has increased their dividend consecutively for 3 years.

Most recently, at the beginning of March, RPI.UN passed an 18% raise to the monthly distribution, from 9.35¢ to 11¢.

Before Net Increase After
Annual Dividend Income
$2,556.11
$105.60
$2,661.71
Monthly Dividend Income $213.01 $8.80
$221.81
Percentage Increase +4.13%

The post Added $100 in dividends from Richard’s Packaging appeared first on The Dividend Beginner.

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On March 2nd, “Canadian Natural Resources Limited announces its Board of Directors has declared a quarterly cash dividend on its common shares of C$0.275”. (cnrl.com)

This dividend payment compares to the previous quarter’s C$0.25 (paid in January), where it was also increased 8.7%. The quarterly distribution before that was C$0.23, paid in October 2016.

Canadian Natural Resources effectively increased their dividend by 16.4% in back-to-back dividend increases.

CNQ has increased their dividend for 16 consecutive years and I originally bought this name for it’s impressive dividend growth history – they have not let me down. It is my favourite Canadian stock for exposure to the oil exploration industry.

Dividend Income increased 0.16%

Considering the Dividend Beginner portfolio contains 40 shares of Canadian Natural Resources, my annual income from CNQ has increased by $4.00, from $40.00 to $44.00. My 12-month forward dividend income has increased from $2,306.44 to $2,309.64, an increase of 0.14%. My income from CNQ accounts for 1.73% of my annual dividend income.

While a $4.00 increase in annual dividend income seems quite low, think about how it would require an investment of $178, at a yield of 2.25% (CNQ’ dividend yield on the day of the raise) to generate $4.00 in dividend income. That’s the equivalent of getting one to sixteen hours of your life back, depending on your wage.

Before Net Increase After
Annual Dividend Income $2,552.11 $4.00
$2,556.11
Monthly Dividend Income $212.68 $0.33
$213.01
Percentage Increase 0.16%

The post CNQ Comes Through with Another 9% Dividend Raise appeared first on The Dividend Beginner.

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The Dividend Beginner by Dividend Beginner - 10M ago

As the market continues to offer little value I have not invested as enthusiastically as I did this time around last year, which is around when my investments really started heating up. Everything was dropping at that time so I picked up things that were going on sale. This time around it’s the opposite as share prices have heated up.

I continue to scour in the market and make up my monthly dividend watch lists which is how I find value in this heated market. While the market is expensive, there remain few stocks here and there which offer the value worthy of investment. I continue to tread cautiously, but I still would like to invest monthly and keep up with whichever direction the market is going. I, just like you, have no idea where we’re headed in the near-term.

I doubled my position in Apple last month after their incredible earnings release, and saw three dividend raises to boost income – saving my life hours by having these companies churn out more for me year after year.

Summary of February Investment Activities

Throughout February, I’ve purchased:

One of my holdings increased their dividend.

None of my holdings were sold to recuperate capital.

None of my holdings reduced their dividends.

*We only now realized a distribution increase of $1.32 by HR.UN

Annual Dividend Income Update
Jan 2017 Net Increase Feb 2017
Annual Dividend Income $2,516.99 $35.12
$2,552.11
Monthly Dividend Income $209.75 $2.93
$212.68
Percentage Increase +1.40%
YTD Increase +2.10%
February 2017 Dividend Income
Non-Registered Taxable Account
NA $16.80
ZWU $7.02
WCP $2.80
IPL $5.81
EIF $13.13
ENF $8.56
AD $16.20
AAPL $13.11
RY $20.75
Tax-Free Savings Account
PLZ.UN $5.63
IPL $7.78
EIF $7.35
ENF $7.36
D.UN $5.63
DRG.UN $6.67
AD $14.18
RNW $19.07
HR.UN $5.06
CJR.B $9.98
Total
$192.89
Dividend Income Journey Year-over-year Dividend Income Growth

It’s easy to see that the portfolio churned out twice as much as last year so I’m happy about that.

I continue to hold a large cash position, about 30% of my portfolio value in separate cash as I just cannot find a place for it in the market. I am trying to stay disciplined and push at least some capital into the market on a monthly basis though as I do want to continue to dollar cost average my positions.

In February 2016, I received $82, and one year later my stocks have generated $193 in passive income. This year’s February income increased by $111 (more than what I made in the entire month in 2016), or 135.37% over last year’s. The percentage rise is pretty consistent with last month’s YoY increase.

Total Dividends 2017

The growth of my yearly passive income is astounding to me here. This is where it’s really showing off in my opinion. After an easy two months, my portfolio has worked hard for me to deliver a total of $454 in dividends.

With a yearly dividend income goal of $3,000 for 2017, after February I am 15.1% of the way there.

My dividend income growth in the first two months of 2017 have been some of my lowest growth over all. The reason for this is investing in a low-yielding, high growth stock like Apple.

Total Dividends Lifetime

I’d like to keep track of my lifetime dividends as it will always be the largest number I can attribute to dividend income, and ultimately is all the passive income I’ve generated from the beginning of this portfolio to now. It’s a great chart to display exactly what you could accomplish when you save your earnings and invest in dividend growing stocks.

After 23 months of receiving dividends and 24 months of investing, I’ve generated above $2,500 in passive income. After February 2017, my record is now $2,853 in dividend income that I earned from having the foresight to invest my money in income generating assets. The great thing about this is that even if I stop investing now, that money will continue to flow into my bank account every month without me lifting a finger, and what’s more is that it will even grow as time goes on considering I took the time to invest in dividend growing companies with proven track records.

How was all of my fellow investors’ January 2017? Any new positions? Dividend raises?

The post February 2017 Dividend Income appeared first on The Dividend Beginner.

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