Home » Dividend Updates » September 2019 Portfolio Update

As a dividend growth investor, I am driven to keep track of both my inflows and outflows. Increases in investment income represent one measure to assess whether I am winning or losing the game of money. After spending a full year tracking my dividend income on a monthly basis, I have noticed that I have a much better understanding of how my portfolio functions.

I have also improved as a capital allocator as I am not allowing dividends to sit idly for as long before putting them back to work to keep the dividend compounding machine firing on all cylinders.

CAD Dividends

CompanyCAD Payments ($)
RioCan Real Estate Investment Trust (REI.UN)31.32
Johnson & Johnson (JNJ)79.37
Corby Spirit and Wine Ltd. (CSW.B)50.60
Fortis, Inc. (FTS)72.00
Canadian Utilities Limited (CU)84.54
Canadian National Railway Company (CNR)8.06
Hydro One Ltd (H)62.79
Chartwell Retirement Residences (CSH.UN)5.00
Metro Inc. (MRU)4.00
Brookfield Renewable Partners L.P. (BEP.UN)130.09
Brookfield Asset Management (BAM.A)3.18
Brookfield Infrastructure Partners L.P. (BIP.UN)13.36

USD Dividends

CompanyUSD Payments ($)
Waste Management, Inc. (WM)21.79
McDonald’s Corporation (MCD)20.71
Yum! Brands, Inc. (YUM)13.93
Yum China Holdings, Inc. (YUMC)3.98
PepsiCo, Inc. (PEP)8.12
Wal-Mart Stores, Inc. (WMT)6.76
Visa Inc. (V)2.13

Dividend Summary

I brought in C$544.34 and U$77.42, coming to $621.73 in currency-neutral dividends. I feel comfortable saying now that +$600 will be the new normal on my Mar-Jun-Sep-Dec payment schedule. While not all companies pay exactly quarterly, most keep a general rhythm as to the timings.

It was nice to have BAM.A and BIP.UN kicking in contributions this month for the first time. When I purchased them back in July, I had been hoping to average down on more shares if there was any weakness in the price. As it turns out, both have run for +10% in share appreciation since that time and effectively frozen me out of executing my plan. There are worse problems than owning some high-flying shares, I suppose.

On the BIP.UN front, the company announced a few days ago that it would be creating a Canadian corporation to attract greater levels of investment as it would provide more favourable tax treatment attributes. Unitholders are expected to receive 0.11 BIPC shares for each share of BIP.UN that they hold in the form of a special distribution. From my perspective, it is an immaterial event as far as wealth creation goes and ultimately create a bit more bookkeeping on my side since I track my dividends. The stock was up on the news, so apparently the market liked the idea.

Here’s a snapshot of my dividend progress:

September 2019

Year To Date Progress

While I have been consistently tracking my dividends in monthly articles, I feel it is useful also to provide the higher-level-view within each monthly rundown. Here are the monthly tabulations:

MonthDividends ($)
Total3,622.85
January540.02
February54.41
March591.07
April521.00
May76.34
June608.09
July533.85
August76.34
September621.73

I am on track to exceed my 2018 totals by around $1,000. I’d love to top that figure, and it will come down to the final months to see whether it comes to fruition.

Market Activity

The simplest thing I can say about the market is that it’s expensive. As much as I’ve been tempted lately to pull the trigger, so many stocks are near or at all-time highs. That’s my least favourite time to invest—I like to invest on value, not trade on momentum.

I’ve actually been looking outside of my usual wheelhouse and considering some tech names. Microsoft Corporation (MSFT) has been trading near all-time highs and strikes me as a particularly attractive investment opportunity on all metrics except valuation. I am hoping to see it come down so I can sock a few shares away in my portfolio. A great product offering, coupled with a growing—albeit low—dividend, has this one hitting my radar.

Cash

I’m still sitting comfortably, earning a 2.75% rate on liquid cash. I don’t mind sitting around a bit and hoping for another “December 2018” event to take place. This time I just need to be nimbler to take advantage.

Conclusion

This was a strong month for dividend income. Being paid to wait around for better prices is a great feeling.

As I read through internet forums and see others fretting about whether a Recession is coming and whether they should be buying or selling, I take comfort in holding firm to the sound strategy that dividend growth investing is. Being able to make money whether the market goes up or down is a vital component to high quality investing. It involves a mindset of patience, resilience, and opportunism when the time is right.

Thank you for reading.

Ryan

Full Disclosure: Long REI.UN, JNJ, CSW.B, FTS, CU, CNR, H, CSH.UN, MRU, BEP.UN, BAM.A, BIP.UN, WM, MCD, YUM, YUMC, PEP, WMT, V

No current position in MSFT, though I may consider initiating one in the near-term.

2 thoughts on “September 2019 Portfolio Update

  1. GRB –

    2.75% on liquid cash is great, while the opportunities will present themselves. Nice work and looking forward to seeing you finish off 2019 strong!

    -Lanny

    1. Hey Lanny,

      Yeah, it is at least some consolation to be getting a decent interest rate while waiting for better prices in the markets.

      Same to you; looking forward to those end-of-year payments.

      Take care,
      Ryan

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