On January 19, 2024 the S&P500 closed at an all time high since 2022. People seem to feel more comfortable investing again. Pat yourself on the back if you’ve stayed invested.
“It’s not about timing the market it’s about time in the market”.
The S&P/TSX has had a measly 2.78% 1 year return in comparison.
I’ve said it before and I’ll say it again, try and avoid Canadian home bias. The glamour of Canadian dividend paying companies may be tempting, but you’ll be losing out on something like a 24% 1 year return.
You can still have your cake and eat it too (or have your Canadian dividends and eat your cake too) by investing with index ETFs that track the S&P500 or US markets.
I like to keep my equities vs ETF about 50/50 or less.
If you like to track your dividend income like I do, here’s a free dividend tracker spreadsheet download for you.
January 2024 Dividend Income Update
My goal for 2024 is to have at least $36,000 annually of dividend income.
Here’s my December 2023 Dividend Income Update if you want to look at my dividend portfolio from last month. The forward annual yield at that time was $34,279.
A few notes: I leave the US dividends received/ estimated as a 1:1 US and CAD dollar exchange to keep thing simple.
My January 2024 Forward Dividend Income is $34,330 and this is an 0.15% increase from last month, or a $51 increase in annual dividend income. Trying not to buy Canadian dividend equities and it shows!
My “hourly rate” is now $3.92 whether I’m eating or sleeping or cleaning my stove.
Or the rate is $16.50/hour if I was working a 40 hour work week. I have just a little bit more to go to make minimum wage in passive dividend income since the British Columbia minimum wage got increased to $16.75/hr on June 1, 2023.
Talk about passive income.
Here’s my screenshot chart from Wealthica below on my 12 month performance relative to the S&P/TSX and S&P500 (13.89% over 12 months compared to the S&P500 which is 23.35% and the S&P/TSX which is 7.33%).
I’m not beating the S&P500, but am still beating the S&P/TSX. This is why you shouldn’t have 100% in Canadian equities which is called “home bias”.
To get to this page, log into Wealthica and click on “add-ons” then click on “Performance Report” in the drop down box. You’ll be able to see how your portfolio compares to the S&P/TSX and the S&P 500 (but it doesn’t include the dividends).
Personally, I think it’s not a bad idea to keep track of how your portfolio compares to the benchmark indices, because if you have 75 different Canadian dividend paying companies and your return over the years is only 4% compounded annually then you might want to think about changing your investment strategy.
Comparing my own portfolio to the benchmark (and being appalled at the measly return) is what prompted me to switch to at least 50% of my portfolio in ETFs a few years ago and since then my portfolio has been doing better total growth-wise.
My January 2023 forward dividend income was $29,054 and my January 2024 forward dividend income is $34,330 so my YoY increase is 18.0%.
Here’s how my forward dividend yield looks like compared to the last few years.
You can read my Wealthica review here if you’re interested in it.
I love it as it works especially well with my Questrade accounts because of the API access and the graphing capabilities of Wealthica are much better than what you would just get with Questrade.
Passiv also gives you very detailed information about your dividend income and Passiv Elite is free for Questrade users.You can even see your time-weighted returns for the past 12 months or year to date. It also breaks down exactly how many dividends you received from with companies or ETFs month by month into a pretty colour coded format.
You can sign up for a free Passiv Elite account here to look at your dividends received.
If you prefer your own spreadsheet instead, and you’re interested in getting your own dividend income spreadsheet tracker, sign up for a free download here.
I like tracking upcoming payments and ex-dividend dates using the Dividend Pro App. I just renewed for another year and they increased the price, it’s now $15.50 or so for a year but I think it’s worth it so I can keep myself updated regarding dividend payments and changes.
Wealthica also has a free add-on called “Income Investor Lite” and you can choose to see the Income Calendar, Dividend Holdings, and Upcoming Payments with a subscription of $9.99/year.
You can do a free trial of the upgraded income investor lite (no credit card needed) for seven days.
The upgraded version has an income calendar showing you the upcoming payments.
Also it shows you the dividends paid (in total), and forward yearly dividends expected including the current dividend yield and your yield on cost (in the paid version).
The free version shows you an income chart of the last 12 months of payments and the forward 12 months of payments expected, however the forward 12 months doesn’t seem accurate.
I like it because you don’t have to manually update any holdings when you make changes to the number of shares you own etc. however, I don’t like that you can’t see it on the phone (and it’s just on desk top).
Therefore, I’ll stick to Dividend Pro for now.
Here are the companies and ETFs that paid dividends in January 2024. January is typically the largest dividend paycheque of the year for me, this year it is over $6000.
- Telus Corporation (T.TO)
- iShares S&P/TSX Capped REIT Index ETF (XRE)
- Vanguard ex-Canada ETF (VXC.TO)
- Vanguard Emerging Market ETF (VEE.TO)
- Riocan REIT (REI.UN)
- Altria (MO)
- Fairfax Financial (FFH.TO)
- TD Bank (TD.TO)
DIVIDEND PORTFOLIO CHANGES
Very little action this month, no dividend increase or cuts.
- Added more Vanguard Total Stock Market ETF (VTI)
- Added more Vanguard Emerging Market ETF (VEE.TO)
Here are some of my favourite five Canadian dividend stocks if you’re interested.
Did you add to your portfolio in January?
GYM is a 40 something millennial writing about personal finance since 2009 and interested in achieving financial freedom through disciplined saving, dividend and ETF investing, and living a minimalist lifestyle. Before you go, check out my recommendations page of financial tools I use to save and invest money. Don’t forget to subscribe for a free dividend yield spreadsheet and the free Young Money Bootcamp PDF.