Dividend income February 2021: Chronicling monthly dividend income on the journey to financial independence. 7% year-over-year growth.
Another month has passed, so it’s time to report how much dividend income was earned.
Although February is usually not the highest month for dividends, I was happy to see dividend income continue to increase over last year.
In this post, I will detail how much dividend income I received in February 2021 and look at which stocks paid dividends.
Let’s dive into this month’s highlights:
Dividend Income February 2021 Highlights
- Total dividend income in February 2021 was $41.54
- 7% year-over-year increase compared to February 2020
- Year-to-date income from dividends is $84.53 (January 1, 2021 to February 28, 2021)
- 10 stocks paid dividends
- All-time dividend income received is $1,715.71 (June 2017 to February 2021)
- Monthly average dividend income in 2021: $42.27
- Sold $CM position for $200.83 capital gain
Earnings in February 2021: $242.37
The portfolio generated $41.54 of dividend income in February 2021.
This represents a 7% year-over-year increase compared to February 2020.
In addition, $200.83 was generated by selling my Canadian Imperial Bank of Commerce shares. It was just a small position of 15 shares. Fortunately, I was able to sell the shares near the 52-week high.
The reason for selling the shares was to diversify my overall portfolio. Too much of my portfolio was invested in the financial sector. I still own Royal Bank of Canada and Bank of Nova Scotia.
Although I plan to diversify further and potentially sell Bank of Nova Scotia, I do not expect capital gains to generate a consistent portion of my income going forward.
Most of the stocks I purchase are intended to be held for at least five years.
When factoring in dividends and capital gains together, $242.37 was earned in February 2021.
Total year-to-date income from capital gains and dividends is up to $285.36.
Stocks That Paid Dividends
Ten stocks paid dividends in February 2021:
- Royal Bank of Canada (Ticker: RY)
- AT&T(Ticker: T)
- Riocan REIT (Ticker: REI.UN)
- Vitreous Glass (Ticker: VCI)
- Choice Properties Investment Trust (Ticker: CHP.UN)
- Apple Inc (Ticker: AAPL)
- Park Lawn (Ticker: PLC)
- Rogers (Ticker: RCI.B)
- SmartCentres REIT (Ticker: SRU.UN)
- North West Health Property REIT (Ticker: NWH.UN)
Out of the ten stocks that paid dividends, Royal Bank of Canada accounted for the bulk of dividend income.
In total, 68% of this month’s dividend income was from Royal Bank.
I realize that am relying too much on one stock for income. But I have purposely designed my portfolio this way in order to invest with little money while I work part-time and grow blog income. Slowly but surely I am growing dividend income around my core positions.
Otherwise, AT&T accounted for the second most income, as it generated 11% of overall income.
I must admit, though, I am waiting for the right opportunity to get rid of AT&T. The high yield is nice, but without dividend raises and because it has been an underperformer, I plan on selling $T at some point.
Admittedly, my investment philosophy is shifting slightly. Dividend income investing will always be my main investment strategy and I plan to document dividend income for twenty years on this blog if I can. However, I am beginning to seek more growth and higher quality companies overall.
As such, the stocks in my portfolio could look different by next quarter. $RY, $AAPL, $PLC, and $SRU.UN are here to stay. But don’t be surprised if $REI.UN, $RCI.B, and $T have been reallocated to other equities.
Any changes that occur will be made with the long-term interest of my portfolio in mind. I am aiming to increase annual returns and annual dividend income.
Dividend Raises
I received one dividend raise from Coca Cola (KO) in February.
Albeit, it was a very small raise because my position is small.
The soft drink maker increased its dividend by 2.4% annually.
The quarterly payment per share increased from $0.41 to $0.42.
However, like AT&T, Coca Cola is another position I will likely unload at some point this year.
Since I do not see myself adding any more to the position, I would prefer to reallocate the funds into another dividend growth stock with more growth potential in the long term.
$665.47 More To Hit My Dividend Income Target For 2021
After pulling in $621.28 worth of dividend income in 2020, I set the modest target to earn at least $750 in 2021.
With ten more months remaining in 2021 to earn dividend income, I must earn at least $665.47 more to meet my target.
This works out to $66.55 per month during the rest of the year.
Of course, some months will be lower, in the $40 range. But the highest months should generate close to $100 per month each.
Considering that there are a few income catalysts that should start impacting the portfolio more in the coming months, I still expect to hit this target.
Outlook For 2021
I was happy to see dividend income stay above $40 per month in February 2021.
One of my personal goals for the year is to maintain dividend income above $40 every single month this year. Of course, there will be higher months: March, June, September, and December will generate the bulk of 2021 dividend income.
For the other months, I am committed to keeping each month above $40. If I can maintain that pace, I expect to post year-over-year growth every single month this year.
Perhaps you are thinking that earning $41.54 on 7% year-over-year growth is not that impressive. You might be wondering why my growth has slowed down over the past year or two.
Well, it’s because I took a part-time job and I am saving a lower percentage of my income.
Essentially, my portfolio has been coasting over the last year or so. It has been increasing by reinvesting dividends, a low savings rate, dividend raises, and with some blog income.
But don’t let the small numbers fool you. I have a long-term plan that is beginning to come together. My annual returns are quite consistent and they are off to a very promising start this year.
As I mentioned in last month’s post, there are a few catalysts that will drive dividend income higher in the coming months.
Mainly, my student loan debt is now under $500 and will be paid off in March. I expect that my savings rate will increase as a result.
Moreover, my part-time job is seasonal, so my hours will begin to pick up at the end of March. Most of my saving for the year happens from April to November. As such, I expect to start saving more over the next few months.
Dividend Income February 2021 – Final Thoughts
In summary, I received $41.54 in dividend income during the month of February from ten different stocks.
This represents a 7% year-over-year increase compared to dividend income in February 2020.
Total dividend income for the year is up to $84.53, and the monthly average is sitting at $42.27.
In order to meet my target to earn $750 in dividend income this year, I must earn an average $66.55 per month over the next ten months.
In other portfolio news, the growth sector of my portfolio has been performing well over the last few months. I decided to move all my cash into Bitcoin and began doing that when Bitcoin was around $42,000 CAD.
In addition, I recently started a position in Planatir (PLTR) with the recent dip.
Considering that one of my largest positions is Enbridge, the defensive nature of my positions, and that my annual return is already quite high, I believe my portfolio is well positioned to outperform during the remainder of the year.
Related Posts
Dividend Income Update February 2020 – 74% YoY Growth
All Dividend Income Updates 2017 to 2021
I am not a licensed investment or tax adviser. All opinions are my own. This post may contain advertisements by Monumetric. This post may also contain internal links, affiliate links to BizBudding, Amazon, Bluehost, and Questrade, links to trusted external sites, and links to RTC social media accounts.
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