April 2016 Investment Income

Welcome to my April 2016 investment income report.  This report will help me track all of my investment income from the rental property, dividend stocks, index funds and exchange-traded funds (ETFs).

Finally, after a year of slaving away we paid off the HELOC.  This was our biggest financial priority and I must say that it’s been a challenge to get it paid off.  Now that it’s paid off we’re in a much stronger financial position and I can use it to invest (should an opportunity arise) and write off the interest.

The second major financial goal for 2016 was to hit the $800k in net worth and I’m happy to say that we’ve reached that goal as well.  It’s hard to believe that back in January I thought this goal would be tough to reach given that the stock market was in the toilet and we still had a hefty $50k chunk to pay off of the HELOC.

Monthly Investing Activity

On the investing front, I continue to make extra cash purchases in my DRiP account to buy more Telus (T), TransCanada (TRP) and Bank of Montreal (BMO) shares.  I also continued with my longstanding plan to save and invest automatically by continuing to invest in low-cost index funds in our retirement accounts and by making automatic share purchases in my DRiP accounts.

The great thing about being a dividend investor is that all of my dividend income is automatically re-invested.  Every month this income buys more shares in my favourite companies that will, in turn, produce even more monthly income for me.  This is how compounding works and is why it’s such a powerful force…what Einstein called the “Eighth Wonder of the World”!

This month, our reinvested dividend income purchased over $1,100 in stocks and ETFs in our various investment accounts.  We received more shares in BNS, TD, BCE, KPT, CM, T, and some others.  Those additional shares will, in turn, give us approximately another $50 in annual dividend income.

In all probability, July’s dividend income will break through the $1,200 mark.  I didn’t do anything special to achieve that much dividend income.  I just keep on investing whatever money that I can and I keep reinvesting the quarterly dividend income.  It’s not rocket science, just the magic of compounding.

Dividend Raises

I had 1 company raise its dividend this month.  Procter & Gamble raised by 1%.  It ain’t much, hopefully management will deliver a larger raise next year!

Monthly Passive Dividend Income

April has been the best month so far with regard to dividend income.  We received $1,148.00 in passive dividend income!  This month’s dividend income has grown by nearly 14% from that of April of 2015 ($1,008.90).  Now a large part of that increase came from investing my own personal savings, while the remainder was due to the regular reinvestment of my dividend income and from companies raising their dividend payout.

So far this year, we have received $3,039.26 in passive dividend income.  Here is the breakdown of the numbers for April:

Dividend Stocks

Bell Canada Enterprises (BCE) – $32.38

Telus (T) – $5.67

KP Tissue Inc. (KPT) – $96.84

RioCan REIT (REI) – $4.21

TransCanada Corporation (TRP) – $15.82

Bank of Nova Scotia (BNS) – $496.99

Canadian Imperial Bank of Commerce (CM) – $26.20

Toronto Dominion Bank – $355.30

TransAlta (TA) – $0.75

ETFs and Mutual Funds

iShares S&P TSX Canadian Preferred Share Index ETF (CPD) – $52.60

iShares S&P TSX Capped REIT Index ETF (XRE) – $43.11

Vanguard Canadian Short-Term Corporate Bond Index ETF (VSC) -$10.22

Vanguard Canadian Short-Term Bond Index ETF (VSB) – $7.91

Total = $1,148.00

Rental Income

Both units are rented out and the property is cash flowing.  There was another small maintenance expense last month, but we still managed to make a profit of $558.71.  This is after all expenses.  This is the reason that I decided to invest in rental property in the first place.  I’ve been busy this month trying to find another one now that the HELOC is paid off.

Total Monthly Rental Income = $558.71

This brings the grand total for our April 2016 Investment income to $1,706.71!

I’ve raised our annual passive income goal from $10,000 to $12,000.  So far this year, we have received $4,919.85.  So we are already 41% of the way there.  I wasn’t sure exactly how much the rental property would add to the monthly investment cash flow, but it’s looking good so far.

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