Tuesday, 7 August 2012

Dividend Progress Report: July 2012 Edition

Here's the recap of my dividend progress for the month of July.

Total yield of portfolio - 4.48% (- 0.22%)
Actual dividends received - $844.54 (+ $212.00)
Expected dividends return if the current positions are held for 1 year - $1604.93 (- $27.08)
Average dividends received per month: $120.65

There was a minor setback in the yield and expected dividend return department last month due to Canfor cutting its distributions (again). This was offset by an increase in my position with Canadian Oil Sands (now large enough for my DRIP to be active) as well as an additional share of Reitmans due to my DRIP kicking in after the share price dropped. The extra share of Reitmans is a good example of the Dividend Re-Investment Plan helping me buy low since it wouldn't have happened if the share price was higher. This helps lower my average cost and increase my yield.

I have to remember that the flip-side is a possibility as well; as my positions get larger I'll be able to DRIP shares at higher prices too. This will increase my average cost (which isn't exactly what I'm looking for). So when it gets to that point in my investing career (hopefully sooner rather than later) I'll turn off the DRIPs and re-invest manually. Sure I'll have to pay commission fees but being able to allocate the money where and when I want to should means that I save money in the long run.

I'd like to note that July was the most productive in terms of receiving distributions. $212.00 last month makes up for the horrible showing the month before. You may have also noticed that I put in a new measure of my progress - I decided to track the average dividends received per month which should more accurately reflect how much I'm getting because all the companies have different distributions dates so good months like July and bad months like June don't really mean anything when the whole year is considered together. Hopefully I can bounce back from the Canfor cut and keep heading towards my goal of $2200.

-the Paperboy

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