Dividend Income January 2021 – Up 30% Over Last Year

Dividend Income January 2021 – Chronicling monthly dividend income to document the journey to financial independence.

I have been documenting how much dividend income I earn per month since 2017 to chronicle the journey to financial independence.

During this time, my annual dividend income increased from $58.14 in 2017 to $621.28 in 2020.

This year, I plan to earn at least $750.

Now that January 2021 is over, it’s time to tally up how much passive income was earned during the month.

In this post, I will report how much dividend income was earned in January 2021 and I will detail which stocks paid dividends.

Let’s dive into the highlights for the month.

Dividend Income January 2021 Highlights

• Total dividend income in January 2021 was $42.99. 
• 30% YoY Increase compared to January 2020.
• Year-to-date income from dividends is $42.99 (January 1, 2021 to January 31, 2021).
• 5.8% increase compared to last quarter (October 2020)
• 10 stocks paid dividends.
• All-time dividend income received is $1,674.17 (June 2017 to January 2021).
• Monthly average dividend income in 2021: $42.99.

Earnings

I started off the new year earning $42.99 worth of dividend income.

This represents a 30% year-over-year increase compared to January 2020.

Approximately 84% of the income was deposited into a TFSA account, while the remaining 16% was deposited into an RRSP.

$12.73 of the income has already been invested into Choice Properties Real Estate Investment Trust. In turn, annual dividend income increased by $0.74.

And the remaining $30.26 has yet to be invested. I expect to allocate the funds into existing positions within the next week.

Earnings Breakdown: 10 Companies Paid Dividends

Ten different stocks paid dividends in January 2021:

1. CIBC (Ticker: CM)
2. Altria Group (Ticker: MO)
3. Bank of Nova Scotia (Ticker: BNS)
4. Riocan REIT (Ticker: REI.UN)
5. Choice Properties Investment Trust (Ticker: CHP.UN)
6. Park Lawn (Ticker: PLC)
7. Rogers (Ticker: RCI.B)
8. Telus (Ticker: T.TO)
9. SmartCentres REIT (Ticker: SRU.UN)
10. North West Health Property REIT (Ticker: NWH.UN)

I received ten separate dividend payments from ten stocks in January 2021. 

This is up by two stocks since last quarter, and up by four stocks compared to January 2020.

The reason for the increase is because I recently opened a zero commission account with WealthSimple. Since I can trade without fees, I am able to start smaller positions and invest more frequently.

Although CIBC accounts for a large portion of income, I managed to lower that reliance by 2% since last quarter. CIBC accounted for 51% of income in January 2021, which is down from 54% in October 2020.

Otherwise, the second highest income was from Altria Group, as it accounted for 16% percent of all dividend income earned. In third was Bank of Nova Scotia, which accounted for 15% of income.

The main reason income increased over the last quarter was because I added to Altria Group on dips.

Outlook and Keys for Growth in 2021

I started off the year with a 30% year-over-year increase in dividend income.

But I really need to push income higher in 2021. To be more precise, I want to get into the $100 per month range.

To accomplish this, I will rely on a few key catalysts.

The first key catalyst is lower commission costs through investing at WealthSimple. By eliminating my commission costs, I will increase my annual return and be able to reinvest every dollar I save. This will add a few hundred dollars more to invest with.

Another way I will increase dividend income in 2021 is through a raise from work. At some point in the next six months, I expect to receive a raise. It will not drastically increase my income, but it will add to savings because I save in percents.

Furthermore, my student loan will finally be eliminated by April 2021. This will immediately add $240 worth of cashflow per month. However, due to increased lifestyle costs of my new apartment, it may not add as much savings as I originally hoped.

Additionally, my blog income is increasing by the month. Since I am planning to reinvest most of it back into the blog, I don’t expect to impact dividend income much. But I will invest some excess cash into quality dividend stocks like Telus.

Reinvesting $750 worth of dividends. The best part about dividend investing is that you earn more dividend income every year. Even though I am investing with little money because I work part-time, I have other income streams to reinvest. Now that I’m four years into dividend investing, I will have over $750 to reinvest this year. In short, dividend stocks are saving money for me.

Dividend Income January 2021 – Final Thoughts

As a recap, I earned $42.99 in January 2021. 

It represents 30% year-over-year growth compared to January 2020, and 5.8% growth over last quarter.

Based on my goal to earn at least $750 this year, I must earn at least $707.01 or $64.27 monthly over the remainder of the year.

Of course, $42.99 is still not a huge sum of money. My dividend income growth has been slower over the past year.

But the combination of blog income and dividend income is beginning to work out. Blog income will turn out to be higher than dividend income this month. 

Now that I’ve got more than a year of part-time work under my belt, my income will only increase from here. Plus, I have a baseline income and know what to plan for.

Moreover, the foundation of the portfolio, which already generates more than $600 annually, is set.

Considering that 2021 will be a more stable year without any moves or large expenses, I expect dividend income to start growing faster.

And based on the current projections, I expect to report year-over-year growth in every single dividend income update remaining this year.

Related posts

All Dividend Income Updates Since 2017

SmartCentres REIT: (SRU.UN) A Smart REIT for Income Investors

How to Easily Track Your Dividends

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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