It is no secret that dividends are a great form of passive income (ie. income you don’t have to work for). Here at My Road to Wealth and Freedom I am a big fan of dividend income because it is taxed more favorably than interest income or even income from your regular job. Also, if you select the right companies to invest in, you’ll see that dividend income increase over time. Most of the companies I own typically increase their dividend at least once a year. In fact, over the past few years, I’ve had several companies increase their dividend twice a year! It’s like getting multiple pay raises each year and that’s why I’m hooked on dividends. These are the reasons that I love being a Dividend Investor.
If you are just beginning to invest then Dividend Reinvestment Plans or DRIPs as they are called are a great, low-cost way to get started. I’ve had these accounts for years and they have been an excellent way to grow my wealth slowly, little by little, over time. In fact, I still contribute to them on a regular basis and will continue to do so in the future. Dripping is like growing your very own Money Tree!
Here is the breakdown of my non-registered true DRIP accounts:
Computershare
In my Computershare account I hold shares in:
The Bank of Montreal (BMO)
The Bank of Nova Scotia (BNS)
Emera (EMA)
Fortis (FTS)
Suncor Energy (SU)
Telus Corp (T)
TransCanada Corporation (TRP)
Not only do I participate in dividend reinvestment plans (DRIPs) for these companies but I continue to make optional cash purchases as most of them have gone to automatic pre-authorized purchase plans where they will debit your bank account on a monthly or quarterly basis depending on the company.
Canadian Stock Transfer
In my CST account I hold shares in:
Bell Aliant (BA)
Bell Canada Enterprises (BCE)
Canadian Imperial Bank of Commerce (CM)
Enbridge (ENB)
Manulife Financial (MFC)
RioCan REIT (REI)
Sun Life Financial (SLF)
TransAlta (TA)
I DRIP these stocks and send optional cash purchases whenever they are attractively priced.
For more information on Dividend Reinvestment Plans (DRIPs) see my posts below:
What Are Dividend Reinvestment Plans (DRIPs)
How To Set Up a Dividend Reinvestment Plan (DRIP)
Dividend Reinvestment Plans (DRIPs): Their Advantages and Disadvantages
Dividend Reinvestment Plans: What Are The Best Companies to DRIP?