A lot happed in the month of January. As noted in last months update, we decided to rebalance the dividend portfolio and remove shares that no longer fitter the portfolio and the dividend growth strategy. Here is the January 2018 Dividend Update.
January 2018 Dividend Update
What’s changed in January on the dividend front? The following shares disappeared from the portfolio:
- POT (Potash) & AGU (Agrium): these merged and are now Nutrien LTD (NTR). The shares of both companies where exchanged for NTR shares, and plummeted next…… Not really creating any shareholder value at this point. To maintain exposure to this basic materials sector we will keep the shares for now. We are also curious to see how the dividends will develop.
- WJA (WestJet – Airlines): this was not really a good growth stock (sensitive to the economic cycles) and we were able to sell with a profit, so we did.
- LIQ (Liquor stores): another non dividend growth stock (heck, it cut dividend a couple years back). One of our “chasing yield” stocks from when we started. Now that the share price had recovered, it was time to sell and reinvest the profits.
We also made some new Purchases:
- REI.UN (RioCan): not really a “dividend growth stock” but it was battered recently due to the rising interest rates. It made for an interesting buy. It’s a REIT and a monthly dividend payer. With the Canadian REIT’s there are very few dividend growth stocks. However, due to their relatively high yield and monthly DRIP’s, they still are in interesting dividend “growth” investment. Plus, we want to have some real estate exposure and diversification too.
- We also increased our existing positions with new share purchases of CU, H and FTS (all utilities).
We now do have some cash that we need to deploy and are evaluating this awesome list to see which positions we need to grow or start.
All the dividend deposits received into the bank accounts (and correct for exchange rates) sum up to a total dividend income of about €522,5. This is a decrease of 4.1% compared to last year. However, this is all caused by a significant exchange rate fluctuation compared to a year ago. In Canadian dollars the dividend actually grew by 4% from a year ago. See, it’s still dividend GROWTH investing 🙂
The stats for last month:
The graph below is showing the yearly dividend totals for 2015, 2016, 2017 and the YTD for 2018. We thus received €522,50 in dividends in 2018.
Dividend Stock Overview
Our dividend portfolio now contains 37 companies with a total of 9.044 shares. The ones with a keen eye among you will see NTR noted twice in this overview, this is due to the merger of POT and AGU (we each had one of these in our RRSP accounts). Since I’m lazy (and have the spreadsheets setup to provided an overview of both accounts individually), this probably won’t change albeit we would like to sell on of the two positions.
The portfolio looks like this:
Dividend Sector Breakdown
When you breakdown the previously shown dividend stock overview by sector, it looks as follows:
How did you do in January?