Dividend Income & Portfolio

My husband and I started investing in dividend stocks since 2017 and have been happily collecting dividends ever since.

Our ultimate goal is to eventually be able to cover all of our basic living expenses with dividend income alone, and reach financial freedom.

Based on our progress thus far and future income projections, here’re some milestones we set out to achieve before reaching FIRE (financial independence, retire early):

  • Dividend income goal for 2019: $2,500 per year
  • Dividend income goal for 2024: $10,000 per year
  • Dividend income goal for 2031: $30,000 per year (achieving leanFIRE)
  • Dividend income goal for 2035: $50,000 per year (achieving FIRE)

As you can see, we still have a long way to go before we can comfortably live off of our dividend income.

Nevertheless, I thought it would be interesting and helpful to track and share our progress vis-à-vis dividend income, to keep ourselves motivated to stay the course in our pursuit of financial freedom, and perhaps more importantly, to illustrate what you can achieve by buying and holding quality blue chip stocks that have a long history of paying and increasing their dividends over decades.

As of June 2019, our portfolio holds 23 stocks and 1 ETF, and is on target to collect $2,850.61 in dividends per year.

Our 3 largest holdings are: Walgreens Boots Alliance Inc (WBA) – 16.55%, CVS Health Corp (CVS) – 13.83%, and Enbridge Inc (ENB) – 10.64%.

In terms of sector diversification, here’s where our portfolio stands:

  • Healthcare – 32.0%
  • Consumer Defensive – 21.8%
  • Energy – 15.2%
  • Industrials – 13.9%
  • Real Estate – 6.8%
  • Government – 6.0%
  • Basic Materials – 4.3%

As you can see, our portfolio is severely overweight in healthcare and consumer defensive stocks. We want to eventually limit our individual holdings to 10% or less, and sector concentration to 25% or less.

Curious about which dividend stocks we’re currently holding? Take a look at our dividend income portfolio: 

ABBVAbbVie IncHealthcare$77.61$1.070
CONECyrusOne IncReal Estate$61.28$0.460
CVSCVS Health CorpHealthcare$54.89$0.500
ETEnergy Transfer LP UnitEnergy$14.14$0.305
MMPMagellan Midstream Partners, L.P.Energy$61.81$0.998
MOAltria Group IncConsumer Defensive$49.90$0.800
TSE:ENBEnbridge IncEnergy$46.42$0.738
AOSA. O. Smith CorpIndustrials$45.33$0.220
CAHCardinal Health IncHealthcare$45.04$0.476
CLColgate-Palmolive CompanyConsumer Defensive$73.53$0.430
KOThe Coca-Cola CoConsumer Defensive$51.12$0.400
WBAWalgreens Boots Alliance IncConsumer Defensive$52.90$0.440
SKTTanger Factory Outlet Centers Inc.Real Estate$16.30$0.355
BPYBrookfield Property Partners LPReal Estate$19.24$0.330
UPSUnited Parcel Service, Inc.Industrials$101.56$0.960
UNHUnitedHealth Group IncHealthcare$250.19$0.900
ABTAbbott LaboratoriesHealthcare$84.33$0.320
MSMMSC Industrial Direct Co IncIndustrials$72.16$0.630
IRMIron Mountain IncIndustrials$32.56$0.611
MMM3M CoIndustrials$170.75$1.440
ALBAlbemarle CorporationBasic Materials$68.94$0.368
LYBLyondellBasell Industries NVBasic Materials$86.21$1.000
BMYBristol-Myers Squibb CoHealthcare$48.61$0.410

Below you’ll find the complete history of our dividend earnings.

Since we invest in both Canadian and US dividend-paying stocks, we receive dividends in both currencies. For the sake of simplicity, I will assume that US$1=CA$1 in my calculations.

2017 Dividend Income: $30.34

December 2017 – $30.34

2018 Dividend Income: $1,506.69

January – $158.74

February – $38.90

March – $205.40

April – $151.45

May – $99.52

June – $324.03

July – $190.70

August – $97.74

September – $83.31

October – $10.17

November – $10.17

December – $136.56

2019 Dividend Income: $380.53

January – $0.00

February – $0.00

March – $123.44

April – $54.07

May – $203.02