Dividend income May 2023 — Chronicling monthly dividend income to document my journey to financial independence. I am not a licensed investment advisor and this post is not investment advice. All opinions are my own.
The month of May has come to a close, so it’s time to reflect on my dividend income performance.
May was another fruitful month for my investment portfolio, as I continued to receive consistent dividend payouts. Meanwhile, the stock markets were consistently volatile as they waited to see if the debt ceiling would be raised again.
In this post, I will share the details of my May dividend income and provide insights into my progress towards financial independence.
First, let’s take a look at this month’s dividend income highlights.
Dividend Income May 2023 Highlights
- Total dividend income earned in May 2023 was $100.33
- Year-over-year (YOY) dividend income grew by 10% or $8.78 compared to May 2022
- Year-to-date (YTD) dividend income is $523.54
- YTD dividend income is up by 8% or $36.81 compared to the same period last year (January to May 2022)
- 12 positions paid dividend income in May 2023
- Quarter-over-quarter (QOQ) dividend income increased by 26% or $20.75 compared to February 2023
- 3 months in a row of $100 plus dividends
- All-time dividend income is $4321.86
- Average dividend income per month in 2023 so far is $104.71
- Dividend income per day in May 2023 was $3.34
Dividend Income May 2023 Earnings — $100.33
May 2023 proved to be another steady month for dividend income.
My investment portfolio generated $100.33 in dividend income between May 1 to May 31, 2023. This represents a 10% year-over-year increase compared to May 2022.
However, the pace of YOY growth certainly slowed down compared to last year. But there are palpable signs that the pace of growth is picking up. For example, quarter-over-quarter dividend income increased by 26%.
Otherwise, year-to-date dividend income in 2023 reached $523.54, which is ahead of January to May 2022 by 8% or $36.81. This is up by 1% month-over-month, which is another indication that the pace of growth is accelerating.
After factoring in May’s dividend earnings, my all-time dividend income reached $4,321.86 since 2017. I am inching closer to $5,000 all-time, which I expect to reach by the end of 2023.
Stocks/REITs/ETFs That Paid Dividends In May 2023
Let’s take a closer look at the stocks that paid dividends in May 2023:
- Royal Bank (Ticker: RY)
- Starbucks (Ticker: SBUX)
- Power Corporation of Canada (Ticker: POW)
- Proctor & Gamble (Ticker: PG)
- SmartCentres REIT (Ticker: SRU.UN)
- NorthWest Healthcare REIT (Ticker: NWH.UN)
- Abbvie (Ticker: ABBV)
- Costco Wholesale Corporation (Ticker: COST)
- RioCan REIT (Ticker: REI.UN)
- Apple (Ticker: AAPL)
- iShares Canadian Financial Monthly Income Fund (Ticker: FIE)
- Savaria Corporation (Ticker: SIS)
In total, 12 positions paid dividends in May 2023. Candidly, I am particularly fond of the positions that paid this month. Specifically, Royal Bank, Starbucks, Costco, Proctor & Gamble, and Apple. To put it bluntly, these are some of the very best stocks in my portfolio.
As per usual during the February-May-August-November months, Royal Bank led the way. The company accounted for an overwhelming 51% of this month’s dividend income.
Starbucks came in second, as it accounted for 14% of May’s dividends. Power Corporation of Canada contributed 12%, and Proctor & Gamble accounted for 7% of this month’s dividends. PG is new to my portfolio in the last few months. I used to own PG back around 2014 and have been wanting the opportunity to buy it again ever since.
In addition to PG, another new company that paid dividends this month is Costco. I have been enjoying going to Costco over the last few months and I absolutely love the company now. Like Charlie Munger, I think it’s one of the best businesses I’ve ever seen. As such, I decided to initiate a position. If the price falls, I’d love to make Costco a very large position.
Otherwise, SmartCentres REIT and NorthWest Healthcare REIT contributed 6% and 4%, respectively. Apple, RioCan, Savaria, and the newly acquired FIE ETF each accounted for between 1 to 2%.
For the record, USD dividends were exchanged for Canadian dollars for reporting purposes to provide an accurate estimate of how much dividend income I’ll have when I retire.
Incorporated ETFs Into My Investment Portfolio
I wanted to share a few details on some of the portfolio changes I’ve made recently. In short, I sold a few positions and decided to invest in ETFs. These changes could appear as though I am switching strategies. However, I can assure you that I am maintaining the same strategy and that these changes are merely in the interest of simplicity. To be more specific, I will invest in a dividend ETF known as SCHD instead of holding Cisco and Abbvie. This will also save me from having to invest in Home Depot, Coca Cola, and Pepsi individually. Furthermore, it will save me from having to analyze companies I’m not as interested in reading about. From now on, my USD portfolio will consist of the following:
- SCHD
- SBUX
- PG
- MO
- AAPL
- META
- PLTR
- COST
- MSFT
Unfortunately, there is some overlap with Altria Group, because SCHD owns it. But I’m ok with that.
Otherwise, the second ETF I plan to own going forward is FIE (iShares Canadian Financial Monthly Income Fund).
The main reason I am incorporating FIE into my portfolio is because of its low cost per unit and high monthly dividend income. Additionally, it adds a bonds component to my portfolio. I always said I would add a percentage of bonds via ETFs as my portfolio matured. Bonds are not something I care to analyze individually, but I do see the value in holding a small percentage.
Furthermore, I have been searching for a low-cost investment option to regularly invest small amounts of money into it. Frankly, I want to be able to reinvest smaller dividend income payments immediately. In turn, I will increase my dividend income every single month. I was considering a smaller REIT as a potential option to consistently reinvest small amounts of money into. However, the problem is that a small REIT is not diversified enough, and I want to limit my REIT exposure — I already own 3 REITs. As such, I chose FIE to fit this role.
Of course, there are some downsides to owning ETFs, such as management fees and less ability to predict dividend income growth. But overall, ETFs are a great option for dividend investors these days. They provide easy access to diversification and require less analysis and portfolio management. There’s plenty of great dividend ETFs out there nowadays too. It’s never been easier for investors. Anyone in Canada with a smartphone can easily download the WealthSimple App on their phone and begin purchasing fantastic REITS that pay monthly dividends like VDY, FIE, and XEI (not recommendations — these are just REITs I like).
Dividend Income Growth Since 2018
The month of May has seen steady dividend income growth over the years.
Overall, dividend income has increased from $15.19 in May 2018 to $100.33 in May 2023.
Take a closer look at the previous dividend income updates if you’re interested:
- $15.19 — May 2018
- $27.64 — May 2019
- $41.62 — May 2020
- $42.66 — May 2021
- $91.55 — May 2022
- $100.33 — May 2023
You can view all dividend income updates since June 2017 here.
Looking Ahead — $876.46 To Reach My 2023 Target Income
With seven months remaining in the year, I am well on my way to achieving my target of $1,400 in annual dividend income. To reach this target, I need to generate $876.46 more in dividend income throughout the rest of the year. This translates to $125.21 monthly.
Considering that the pace of dividend growth is beginning to pick up, I remain confident that I can meet and exceed this goal.
However, the next four months are going to be the most challenging months of the year. I earned $138.84 in June 2022, $117.05 in July 2022, $109.17 in August 2022, and $152.18 in September 2022. September 2022 is still my highest month ever. As such, I expect to see some more close earnings beat with lower growth over the next four months. But October, November, and December will likely start to see heightened acceleration of dividend growth.
It’s important that I remain focused on maintaining a high savings rate, investing in quality dividend stocks, and reinvesting dividends to maximize the compounding effect.
Final Thoughts
May 2023 was another successful month on my journey to financial independence.
As a recap, my investment portfolio generated $100.33 in May 2023. This represents a 10% increase compared to May 2022. After factoring in May’s dividend income, year-to-date dividend income is up to $523.54, which is ahead of last year by 8%.
Moreover, my all-time dividend income since June 2017 reached $4321.86.
In conclusion, I am continuing to make steady progress towards my goal to earn at least $1,400 in dividends this year. I will continue to save a high percentage of my income for investing as well as reinvest dividends. I look forward to sharing my updates on my progress soon.
Related Dividend Income Updates
All Dividend Income Updates Since 2017
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