ABOUT ME


At the Airport, on my way to Cuba!
Hi! Welcome to Dividend Income Stocks. My name is German and I live in Montreal, QC, Canada. I’m 33 years old, married to a beautiful woman and we have two girls. I graduated from Vanier College in 2008 in Business and Management and have worked in finance ever since.

My wife and I both work and earn a middle class salary. It’s enough to pay the bills and have a comfortable life. Our current lifestyle is supported by double-income. However, if one of us loses the job, we would be in financial trouble. It would have been impossible to pay for everything from one source of income. So, in order to secure our cash flow, we started to look for other sources of income.

Since we both work full-time, we needed something that doesn’t require much time and investing in the stock market made perfect sense. We started to buy stocks and collect dividends every month. The first year of investing seemed to be very slow and provided little return. But as years passed by, more and more dividends started to flow into our portfolio.

THE JOURNEY
Our investment journey started in 2010, a year after a Tax Free Savings Account (TFSA) was introduced in Canada. First, I opened up a brokerage account and then applied for TFSA to buy and hold stocks in that account. Since it’s a tax-free account, capital gains and dividend income are not taxed. However, TFSA contributions are limited and amounts are determined by the government each year. In 2017, we maxed out my personal TFSA account and decided to open another account for my wife. My wife decided to keep her account private so I cannot provide any details about her investment account.

MY GOAL
My goal is to receive a $1,000 per month in dividends. This way we won’t depend on two jobs all the time. I want my salary and dividend income to cover all expenses so that my wife could retire earlier.

THE BLOG
Dividend Income Stocks blog is the chronicle of my portfolio evolution. I started this blog in 2013 to keep track of my investment activities, portfolio value, and dividend income. I’m committed to save and invest each month to keep the portfolio growing. All dividends are reinvested back into the stock market to maximize the returns. Stock market takes a lot of patience and can provide solid return in the long run.

17 comments:

  1. Hey mate,

    I will open my website about canadian dividend paying stocks very soon, I hope we can partner up. Focus of my website will be deep dive analysis of canadian dividend stocks.

    Good luck
    Walt

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  2. Hey Walt,

    Sounds good. Once you open your website, drop by and post your link. I will be glad to check it out.

    Thanks.

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  3. Hi,
    It's cool to see that this dividend growth investor's community in growing in Quebec too.
    Cheers and best wishes!

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    Replies
    1. Thanks Allan. I'm also one of the happy readers of your blog. I hope to inspire as many people as I can. Quebec is a heavily taxed province and the working class in Quebec have less money in the pockets after all living expenses.But this shouldn't stop us from saving and investing. The earlier, the better, even if it's a small amount.

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  4. Hi GK,

    I too am in Montreal, actually! I also graduated Vanier in Comp Sci Technology last year.. What a small world...
    I agree that QC is a tax hell-hole, and I can't wait to get the F out of here!

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  5. Hi DB,

    It's true... a very small world! Glad you stopped by.

    Regards.
    GK

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  6. Thank you for commenting on my blog :) I like the look of your portfolio and also look forward to reading your future blog posts. Is there a way to subscribe to the blog so I don't miss a post? Thanks keep up the great work.

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    Replies
    1. Hey Mat. I added the subscription feature on my blog. Feel free to sign up! Thanks.

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  7. Canadians love that pizza pizza stock, anyway
    I started a new Net Worth Blog and I would like you to check out my portfolio, any feedback is appreciated
    http://othalafehu.wordpress.com

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  8. Hi German,

    Great site! What are your thoughts on using covered calls to create additional income?

    Josh Brown

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    Replies
    1. Hi Josh,

      Thanks for writing. At this time I just buy and hold dividend stocks. I don't trade options, I prefer to hold the shares instead. Do you trade options?

      Thanks

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  9. Hi German,

    My name is Anuj Agarwal. I'm Founder of Feedspot.

    I would like to personally congratulate you as your blog Dividend Income Stocks has been selected by our panelist as one of the Top 15 Canadian Dividend Blogs on the web.

    https://blog.feedspot.com/canadian_dividend_blogs/

    I personally give you a high-five and want to thank you for your contribution to this world. This is the most comprehensive list of Top 15 Canadian Dividend Blogs on the internet and I’m honored to have you as part of this!

    Also, you have the honor of displaying the badge on your blog.

    Best,
    Anuj

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  10. Hi German,
    My investment plan is very similar to yours. It fumbled aimlessly around the market for 20 years developing this plan. I am impressed that you came to it so quickly. I would caution people (especially low income earners) about TFSA's or RSP's. The tax savings are minimal.
    Also you lose out on the dividend tax credit. Also there is no recourse for capital losses.

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    Replies
    1. Hi John,

      Thank you for stopping by. My plan is not too hard to follow. I created it about 7 years ago and still follow it. Before the TFSA came out, I was invested in non-registered accounts and switched over to TFSA when it came out. For me it's a lot more easier. I don't have to deal with taxes at all. The money that I can save is only enough to max out my TFSA, let alone the RRSP. If I could save more, I would max out RRSP second, before investing in non-registered account. What is your investment plan and where do you stand? Do you have a blog?

      Thanks,

      German

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    2. Hi German ,

      I don't have a blog. But I am familiar with email.

      Investment Objectives
      To purchase productive assets in order to provide a steady stream of income in perpetuity.

      Investment Philosophy
      Securities should be purchased from an ownership point of view with the intention of owning them forever.
      The intention is to purchase reliable and consistent earnings at a reasonable price. It makes no difference what portion of earnings are paid out or reinvested in the company, but at my age I would prefer that dividends be paid.

      I came to this plan by first realizing the following:

      Economic Philosophy
      Root assumption: All species consume materials and energy from their environment. Humans are no different. We are all consumers.
      Humans must actively go out into their environment to obtain the things they need to sustain and enhance their lives.
      Life ===> needs and wants ===> production ===> consumption ===>Repeat…
      The rest of this document will assume that the consumption side of the equation is settled. Investing is all about production.
      In an organized society there are several ways to participate in this production/consumption cycle.
      " You can be a worker.
      " You can be an owner. (land or capital)
      " You can be a lender.
      " You can be any combination of the above.
      " You can be a thief. (outside the scope of this document)
      " You can be a dependent. (outside the scope of this document)
      *Due to the broad ownership of stocks a share owner's participation and influence is minimal. (Similar in concept to the absentee landlord)

      Please feel free to question, poke holes, add to, or change what I have written. I need the criticism.

      TFSA Tax Scenario

      Income: $35,000
      Tax (in Ontario): $ 4,723 (from TaxTips.ca)
      TFSA: $ 5,000
      TFSA Income @3% $ 150
      Total tax liability: $ 4,723

      Income: $35,000
      Tax (in Ontario): $ 4,723 (from TaxTips.ca)
      Non TFSA: $ 5,000
      Dividend Income @3%: $ 150
      Total tax liability: $ 4,713

      Taxes saved by using a TFSA: -$10
      You actually pay more tax by using a TFSA

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  11. Great to see a fellow Montrealer, whereabouts in the city are you?

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    Replies
    1. Hey MrSLM! I'm in Saint-Laurent area. I see you're also from Montreal :)

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