Dividend Portfolio Update - September 2014

Market overview
As predicted last month, the TSX had corrected 5.5% in September. Such correction is healthy for the bull market to be sustained. Apart from the basic demand and supply that drives the price of commodities, there are other global concerns that drive the markets down. The crisis in Middle East, Ukraine and Ebola virus, in my opinion, had a negative impact on the markets and will continue to put more pressure if the issues are not resolved in a timely manner.

Dividend portfolio value
As of September 30, 2014 my dividend portfolio balance is at $18,261.30. Most of my stock participated in September's correction with 5-7% decline rate. The good news is that I collect the same amount of dividends regardless of stock performance. While I wait for stocks to rebound I will collect my dividends. My main goal is income, capital appreciation is secondary.

For the month of September, I received a total of $97.78 in dividends vs $100.37 for the same month a year ago. My dividend income decreased by 2.58 % on year over year basis. Next month, I see my dividend income go above $100 for the first time in 2014. My total Year-to-Date dividend income for 2014 is $800.26. My goal for 2014 is to receive $1000 in dividend income and I'm on track to meet my goal.

Dividend increases

During the month of September, I was able to contribute a total of $1000 to my TFSA (Tax-Free Savings Account). My objective for 2014 is to contribute $5,000. In order to meet my goal, I will need to save and contribute another $2000 to my TFSA account before the end of the year.

From my new contributions and dividend income, I was able to purchase 2 stocks.

Medical Facilities Corp (DR.TO)

I added 25 shares to my existing position at $16.55 per share. I decided to take advantage of the current low price. I think the price will jump back to $20 level next year. I remember selling half of my position back in January 2014 for $19.63. The valuation at the current price is very compelling so I decided to get back my shares. Medical Facilities has a 6.95% dividend yield and this purchase will bring additional $2.35 per month in dividend income.

Freehold Royalties (FRU.TO)

I added 25 shares to my existing position at $24.14 per share. FRU pays 14 cents per share per month, that means it has a 6.98% dividend yield. This purchase will bring additional $3.5 per month is dividend income.

No milestones were reached this month. Better luck next month :)

Market outlook
Longer term the markets continue to look good. In October, I expect a 50% rebound from September losses.


  1. Thanks for sharing your recent portfolio update with us. Almost cracking $100 for a month of dividend income is awesome. Keep doing what you're doing. I have three Canadian stocks in my portfolio, TD, BNS and RY. I just added them about a month ago and looking to average down the cost on those. Look forward to your next update.

  2. Hey. Thanks for stopping by and for your feedback. I will certainly continue to buy dividend stocks. Dividends work for me just fine :) I’m planning to start adding financial stocks in 2015 for better diversification. Based on seasonal analysis, November is the best month of the year to buy banks. So next month could be your lucky month. Good luck.