- Total dividend income projected is $652.14 (Up $17.80 since the previous report).
- $132.51 in dividend income has been added year to date.
- Annual dividend income was up $26.99 overall in May 2019.
Hi, Investors!
I hope you’re doing well today!
Welcome to the 18th dividend income projection.
These reports track the monthly growth of forward projected dividend income over a 12 month period (January to December).
As of June 12, 2019, the RTC portfolio is now expected to pay at least $652.14 annually. This works out to an average of $54.35 per month.
Annual dividend income increased by $17.80 through adding to existing stock positions since the previous report.
Dividend Income Projection # 18 | June 2019 | $652.14
Revenue from dividend income grew by 2.81% since last month’s report.
Most of the $17.80 added was a result of my employer’s stock sharing plan. However, part of the increase was the result of capital being reallocated.
In short, I decided to take a small profit on one of my positions. This initially caused projected dividend income to be lower. But I reinvested the proceeds into a stronger business.
There are now 14 businesses in the RTC Portfolio. 11 of them pay dividends.
Although less stocks are held after this month’s changes, projected dividend income is still higher.
The RTC portfolio manager did fantastic work here, if I may say so myself.
$347.86 until this is a 4 digit business
Forward dividend income needs to increase by $347.86 in order to reach $1,000 annually.
To reach the goal of $800 annually, dividend income needs to increase by only $147.86. Basically double what the portfolio has increased year to date.
Based on YTD performance, and on last year’s dividend income growth, it would appear that the portfolio is right on schedule…
But there might be portfolio changes coming
The RTC Portfolio Manager has been pondering the idea of selling one of the larger stock holdings. He believes he could relocate the capital better and he wants to pay out a special dividend.
It’s in a non-registered plan so there would be tax implications on the gains or losses.
However, the position could be sold out, transferred to a bank account, and then contributed back to a TFSA.
Related post: Canadian Dividend Investing Strategy: Benefits of the RRSP
The goal would be to increase dividend income enough to be back up to the same level as before the sell.
Of course, there is always the option of transferring the shares in-kind. But we believe the portfolio manager is capable of selecting stocks carefully, so that there’s enough cash left over to hold on to extra cash.
Concluding Thoughts – Dividend Income Projection # 18
If the mentioned change does occur, the highest paying months would become the lowest paying months.
On the other hand, the other months would have the potential to surpass the $74 high expected now.
It’s also an opportunity to simplify the portfolio. I am even considering adding an index fund component since I spend a lot of time on blogging and photography anyways. Stock analysis is a lot of work, and it’s only fun if the company is interesting. With that in mind, it’s possible that a more hands-off approach to investing may be beneficial. But in reality, my returns have been good and dividend income has been steadily increasing.
Of course, even if I do start buying the S&P 500, I would certainly keep dividend investing as my main strategy. I would just focus on less companies overall, like I originally intended to in my strategy to build a cash flow machine. I only want to hold the best companies and then index on the side.
To sum up dividend income projection # 18, my stock portfolio now pays me $652.14 per year. That’s up $17.80 since the previous report. Although multiple changes could be coming, I am still very committed to dividend growth investing.
I am not a licensed investment or tax adviser. All opinions are my own. This post contains advertisements by Google Adsense. This post also contains internal links and links to RTC social media accounts.
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Monthly Savings Report for May 2019 | $537.70
