May was characterized by high inflation. A confluence of geopolitical factors continue to lead to higher prices in just about anything you can name.
As fuel, food, and other prices soar, central banks are under pressure to boost rates. The challenge with this, of course, is that increasing the cost of capital runs the risk of inducing a recession.
All the while, the dividends continue flowing.
Table of Contents
Dividend Summary
I earned dividends from six companies, one of which provided a dividend raise.
CAD Dividends
| Company | CAD Payments ($) |
|---|---|
| RioCan Real Estate Investment Trust (REI.UN) | 22.19 |
| Chartwell Retirement Residence (CSH.UN) | 5.10 |
| A&W Revenue Royalties Income Fund (AW.UN) | 6.20 |
USD Dividends
| Company | USD Payments ($) | Dividend Change (%) |
|---|---|---|
| AbbVie Inc. (ABBV) | 63.45 | |
| Mastercard Incorporated (MA) | 2.92 | |
| Apple Inc. (AAPL) | 3.45 | 4.55 |
I brought in C$33.49 and $U69.82, coming together for a currency-neutral $103.31. ABBV remains my highest paying US dividend stock. It really does the heavy lifting on the February-May-August-November dividend payment cadence.
This represents a 20.24% increase over my dividend income from March 2021. This is a solid boost, albeit from a low base.
It’s nice seeing my dividends crossing the $100 line again in the month of May:
A few years ago, before Jean Coutu was acquired by Metro (MRU), I was also receiving those dividends in May. When that transaction occurred, it’s what caused the monthly drop for this period.
Year To Date Progress
Taking all months combined, I’ve posted just over $2.3k:
| Month | Dividends ($) |
|---|---|
| January | 645.55 |
| February | 101.85 |
| March | 750.44 |
| April | 720.76 |
| May | 103.31 |
| Total | 2,321.91 |
By this time last year, I had earned $2,165.81. So, I’m sitting on a 7.21% increase YOY at this stage. As usual, all dividends will be reinvested.
May Noteworthy Events
CIBC (CM) announced a 2:1 stock split. It was effective May 16 and was the first in many years for the company. While it adds no actual value to the stock or the company, it does represent the fact that it has been growing, which is never a bad sign.
Walmart (WMT) and Target (TGT) both posted huge double digit single-day losses this month. For each, it was their worst drop since 1987. This was largely the result of inflation taking a toll and hitting their bottom lines. It’s tough to remain a discount retailer when costs are rising all through the system.
All the same, I’m not making more out of this than it is. I’ve been a WMT shareholder since 2015 and plan to be for the long term. Markets will ebb and flow, but the long lines in the actual stores and progress they’re making with eCommerce give me confidence.
Market Activity and Cash
My only activity in the stock market through May was to purchase two additional shares of Shopify Inc (SHOP). The company has been pulling back continuously as the overall market declines.
Valuation matters in the stock game and I love to take advantage of opportunities like this. The bottom line is that Shopify is one of the best companies in the eCommerce space. The importance of eCommerce is guaranteed to increase in the years to come.
Beyond this, I’ve been just keeping my cash levels steady.
Conclusion
May was a steady month for portfolio income. Dividend income was decent, again showing that it can be counted on regardless of market conditions.
Getting to double down on Shopify at a lower valuation is something I’m excited about over the long term. The company is top notch and should keep performing in the months and years to come.
Always remember that declining markets let you buy high quality assets at lower prices. Make use of this.
Full Disclosure: Long REI-UN, CSH-UN, AW-UN, ABBV, MA, AAPL, MRU, CM, WMT, SHOP