I finally got around to doing my dividend spreadsheet, and this is what it looks like for your information.
PROJECTED TOTAL DIVIDEND INCOME = $10,254.53 for 2020
My goal for 2020 was $12,000 a year in income. I only need $2000 more to meet this goal, and then I might increase it to $15,000 a year to push myself.
|Company||Number of Shares||Div/Share||
I always put them all on a DRIP (Dividend Reinvestment Plan) to buy more and more stock with the payouts I get, but I do track dividend payouts as income for the year, as it is money given/generated from my investments, even if I don’t take it as an income.
TAKE THIS ALL WITH A GRAIN OF SALT
I am by no means recommending you embark on dividend investing as a strategy.
Plenty of common sense out there tells you to just stick to boring, unsexy mutual funds like index funds, and they do have a lot of truth in the matter.
I am doing this a a MINI dividend project because the other half of my wealth is in exactly that – mutual funds, which also pay out dividends (about 1%) a year.
I invest IN the stock market as a whole, and through companies in the stock market.
You don’t have to do this.
Even if you invest in mutual funds, you will definitely have dividend-paying companies in their portfolio makeup and you aren’t losing out AT ALL if you just stick to that.
I just happen to also want to accelerate my portfolio with “extra” money on the side to create a stream of income, kind of playing the best of both worlds, you know?
A mutual fund is SAFER, and will provide diversity because if you put a bit of money into 50 stocks in a mutual fund versus the same amount of money into ONE stock, if that one stock tanks, you’re hooped.
How can I find stocks that pay dividends?
You can also look at mutual fund fact sheets and their top 10 holdings for instance, but again, take that with a grain of salt. Just because it is in a mutual fund, doesn’t mean it is amazing.
Just because I have it in my chart above, or in my list, doesn’t mean it is amazing. It can be a disaster with a 50% DECREASE in capital meaning you put in $1000 and it may pay out a dividend but it is worth only $500! WHAT A WASTE!
DO YOUR OWN RESEARCH.
I have picked clunkers before, but if you truly want my advice on a beginner dividend stock?
Pick a bank. They’re pretty solid in Canada for the most part and unlikely to really go bankrupt unlike other companies.
Pick big companies that are well-established (a lot on my list, like Fortis, Emera, Canadian Utilities, etc).
These books are U.S. focused, but are applicable to Canada as well.