July 2017 Dividend Update

Yeah, we are a crazy bunch here at Cheesy Finance, we switched the Dividend and Savings Rate posts! Let’s first look at the money received before we start looking at the money spent :-). After a record month in June, July was a bit quieter on the dividend income side. Please follow along for the July 2017 Dividend Update.

Monthly Dividend Update

No new share purchases this month, as we are keeping our powder try for some new real estate. But if no opportunity arise in the next couple of months, we will turn around and start to buy more dividend shares.

We also sold 4 shares of PSK, which we had received as part of a dividend payment by CNRL. We made a handsome 15% profit on these shares within about a year (including fees), so happy with that result. The money will be invested elsewhere once we hit about $1.000 in cash in the RRSP account.

Obviously we had tons of DRIP shares including the usual monthly dividend payers such as AAR.UN, CJR.B, DRG.UN, LIQ.UN, HR.UN, PLZ.UN, CIX and SJR.B. We also dripped a few others including UFS, RCI.B, AQN and TCL.A.

Life was good this month 🙂

July Dividends

Once we added up all the deposits received into the bank accounts (and correct for exchange rates), the total comes to about ~€490. That’s pretty good!  It is also a 7.6% increase from a year ago. This is not very spectacular, but not bad either.

July 2017 Dividend Update - Dividend Income

July 2017 Dividend Update – Dividend Income

The graph below is showing the yearly dividend totals for 2015 and 2016, and a year-to-date dividend total for 2017. We are creeping up nicely towards the total for 2016.

The “Dutch” dividend income (AH, ABN, BOS, UNA and RDSA) are all after taxes (15%). The rest are held in RRSP’s and are not taxed (we will pay withholding tax when we withdraw from the account, but the dividends are not taxed themselves).

July 2017 Dividend Update - Yearly Dividend Overview

July 2017 Dividend Update – Yearly Dividend Overview

Dividend Stock Overview

Our dividend portfolio still contains 46 companies with a total of 11.815 shares and looks like this (up 1.771 shares from a year ago):

July 2017 Dividend Update - Dividend Overview

July 2017 Dividend Update – Dividend Overview

Dividend Sector Breakdown

When you breakdown the previously shown dividend stock overview by sector, it looks as follows:

July 2017 Dividend Update - Sector Allocation

July 2017 Dividend Update – Sector Allocation

 

How was your July? Was it slow and steady too?

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30 comments

    1. We sold a ALL ETF’s in our pension accounts and started researching and purchasing Dividend Stocks. Took a while, and made some mistakes, but overall it worked out ok.

  1. Hi Team CF,

    Impressive and interesting what you are doing!

    Some practicial questions I have:

    1. What are your selection criteria of choosing investments in your equity portfolio (especially the Canadian ones)
    2. Do you use tools to support your decisions?
    3. How much tax is with-holded from the distributions of your CAD REIT positions? (E.G. Plaza REIT and HR REIT?)

    Last note, did you know that your DREAM REIT did one month ago a large Dutch office transaction?
    (They bought the MERIN portfolio)
    https://fd.nl/ondernemen/1210768/vastgoedbelegger-merin-voor-ruim-600-mln-verkocht-aan-canadezen

    Thanks for your feedback,

    Keep on doing the good work!

    Rgds,
    WB

    1. Hey WB,

      Thanks for the note. A bit of feedback to your questions:
      1: for the Canadian shares we use the this gent’s great resource: http://www.dividendgrowthinvestingandretirement.com/canadian-dividend-all-star-list/
      From this we filter to have yields of about 3% and up, normally 40-60% payout ratio (REIT’s need to pay out more by law, so these are usually around 80-90%), long(er) dividend streak of course, PE ratio’s (as low as possible), chowder above 12 where possible. We also wanted a reasonable spread in various industries, so we had to divert from the above a couple of times to have more companies in the portfolio. We made some mistakes here and there, but most picks have been rather good so far.
      2 see above
      3 because all stock we have in the RRSP accounts are Canadian, we don’t pay withholding tax on dividends. We would only pay 25% on the funds we withdraw from the account.

      We like the dream REIT, high yield and still strong metrics for the most part. It also covers the commercial leases side of things and has exposure outside Canada, which we don’t have in other REIT’s.

      Cheers

    1. We only started halfway the year reinvesting ETF’s we sold within our pension accounts. Therefore the rapid rise from 2015 to 2016 (and further into 2017). We reinvested close to €120.000 into dividend paying shares in about 15 months.

  2. Awesome month. Our graphs do look very similar haha. I like the list of companies in your portfolio. Can’t wait until I have just as many and generate income to your level. Keep it up!

  3. Very solid. A lot of stocks that are quite new to me. I need to check those companies, because as europeens, our dividend income is very dependent on foreign currency. Thinking about going a bit from USD to EURO. Also love the sector diversification. Seems that you are bullish on finance! Keep going!

    1. Banks control the world and they pay a nice dividend, what’s not to like 😉
      Why switch to EURO as you can now finally buy US shares with a bit of a discount due to the exchange rates? Granted, valuations are high!

    1. Yes, we are, but not very active at the moment. Made some tax calculations and those were not very favorable. But we still have some more homework to do, so I’m not writing it off just yet.

  4. You put up a pretty impressive number for the month of July. Yes, we all don;t like coming off our June highs but you still managed a solid € gain with a high single digit year over year gain. Nothing to complain about there. Keep up the good work.

  5. There may not have been much growth but the total is still very impressive I have to say. You guys did great this month and it’s nice seeing all the increases on the graph. Keep it up 🙂

    Well done on the 15% gain, that’s impressive just one year.

    Mr DDU

    1. hey Mr DDU,
      Thanks mate! The 15% gain is only the difference between the book value and current market value. The yearly increase it a bit lower, around the 10% I believe. Did not make any calculations on the yearly increases to be honest (Oh and we sold and then bought some shares long the way that made some capital gains too).

  6. Team CF- Yes! A slow month, are you kidding me? That’s an amazing job here. I love seeing your progress every month. and where you have come from in just over two years of dividend investing. It is very inspirational for me and serves as great freaking motivation.

    Bert

    1. Thanks for the kind words Bert. Funny that it was actually you guys, Dividend Growth Invester and DivHut that convinced us to start with dividend investing. You may be proud 😉

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