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Dividend Weekly 05-2022

Personal and Blog Recap

Happy February everyone! I can’t believe we are already one month into 2022 - the time has been flying so let’s recap and see how January treated us.

Overall the Just-Dividends portfolio has produced a 7.6% higher return in dividends and distributions than last year. Usually, I aim for double-digit growth but liquidating a small amount of high-yielding positions last year in favor of a down payment for my first property and a strategy only containing dividend growth positions has left its mark.

I am definitely happy about the growth and am looking forward to the increases to come for this year especially after fully recouping room in the TFSA, which I have available due to some withdrawals last year.

Passive Income January 2022

 

Portfolio Updates

In the following section, I will outline all transactions in my brokerage accounts as well as cover relevant news around my holdings with the goal of keeping my portfolio as transparent as possible.

Dividends Received

In the week starting January 31 2022 I received dividends and distributions from the following holdings:

Bristol-Myers Squibb Company (NYSE: BMY)

General Mills Inc (NYSE: GIS)

Stryker Corp (NYSE: SYK)

Transalta Renewables Inc (TSE: RNW)

Toronto-Dominion Bank (TSE: TD / NYSE: TD)

Verizon Communications (NYSE: VZ)

Buy and Sell Orders

On February 1, I increased my position in Brookfield Renewables Partners (TSE: BEP.UN) in my TFSA.

The stock took a dive over the course of last year, as a lot of utilities in the renewable sector did and I took the opportunity to lower my average price per share.

I’m very excited about this position and think with the shift towards renewable energy sources, this global company is in a great position for years to come. You can see their current geographical diversification in the graphic below and if you’re interested I highly recommend checking out more stats and the overall strategy in the Brookfield Renewable Investor Brochure.

Brookfield Renewables Global Portfolio

 

Holding News

This week proved to be the bearer of great news for future distributions as a total of four dividend increases was announced over the course of the week. That marks a total of 7 increases in the last two weeks alone.

United Parcel Services (NYSE: UPS) kicked off the week with a stunning 49% increase. A benchmark I don’t expect any of my dividend growth stocks to even come close to. I would have marked half that increase as a huge win. My cost basis on the position is just above 104$ per share, and with close to a 6% yield on cost, it has become my highest yielding blue chip in the industrial sector.

Following the good news from UPS, BCE (formerly Bell Canada Enterprises) (TSE: BCE) announced a dividend hike of 5%. The Telecom sector is already a fairly high-yielding one and the 5% increase is maybe even more than I expected at this point.

On the same day, February 3, as the Bell announcement, Air Product and Chemicals (NYSE: APD) announced a dividend increase of 8%. I opened the position just a couple of months ago, as I’m trying to bring up my investments in the materials sector (here: chemicals) up to size and although there hasn’t been a lot of capital appreciation, I feel good that the yield is slowly increasing towards 3%.

Lastly, Brookfield Renewables Partners (TSE: BEP.UN) announced a distribution growth of 5% on Friday. It’s great to see a pure-play in renewable energy keeping up with increases and the announcement definitely sparked joy for me after lowering my dollar cost average earlier this week.

Concluding the above, I can say once more that dividend growth investing has worked like a charm for me while letting me sleep at night. It was very satisfying to see the snowball growing over time and later this year I should reach the point where my full mortgage payment (my biggest monthly expense) would be fully covered by dividends and distributions.

Reads from the Community

Over the course of the week, I had a chance to read a lot of articles from the investing community. Below you can find some of my favorite posts and/or videos throughout the week.

In “6 Top Canadian REITs to Buy in 2022” Mathieu examines why REITs can make an excellent addition to your portfolio and how to rate them with metrics that are not the traditional dividend/distribution payout ratio. I, like many Canadian Investors, am currently focused on maxing the annual TFSA contribution room, and REITs are an excellent way to take advantage of the tax-free distributions. In the post, he dives deeper and examines 6 stocks with very different specializations (residential, office, industry) giving you enough food for thought to start your due diligence.

Check back next week for more reads from the personal finance and investing community!

Closing Words

I hope you enjoyed reading through some of these insights into my personal life and portfolio.

I invite you to share your opinions or feedback regarding the series. Are you missing anything? Is there another topic you’d like to see covered? Let me know in the comments below!

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