February 2020 Dividend Update:Perception Vs Reality
Personal Highlights for February:
- The wife and I both started our new jobs in February. So far so good. The kids have been super active and having a great month. We celebrated Valentines Day with some Wine, Whiskey & Thai food.
- The Corona Virus has been all everyone has been talking about lately. It’s caused a pretty big drop in most people’s portfolios as well. I’m not going to pretend like I know if the market will continue to sink, or rebound quickly – but what I WILL say is this….
The amount of panic and people freaking about about a drop in the market is INSANE. My portfolio is 100% equities. It dropped -5.41% since last month. In the 5 years I’ve been tracking my portfolio – this isn’t even the largest 1 month drop I’ve experienced. In fact, my portfolio although down from it’s all time high, is only back down to where it was a few months ago. Here is a little visual for some perspective.
S&P 1 YEAR CHART: The Sky Is Falling (Perception)
S&P 5 Year Chart: This is a BLIP (Reality)
Don’t get me wrong – the market could continue to plummet (wouldn’t surprise me), but this (so far) is nowhere near 2008-09 levels. Even if the market does keep plummeting, I plan on sticking to my plan, holding good companies for the long haul and reinvesting my dividends at a reduced rate while the stocks are on sale.
- Received this bottle of Barchef Toasted Old Fashioned in the mail, from a fellow blogger/reader of the site who has a personal connection to the Barchef Project in Toronto. He knows I am a huge whiskey/cocktail fan, and hooked me up with a bottle!! I haven’t tried it yet, but once I do I’ll be sure to post a review! Big thanks to Money Mechanic for sending it – and if you aren’t familiar with his site/podcast, check it out HERE
- Speaking of whiskey, I finally got around to reviewing 2 different bourbons that I had purchased in a lottery over a year ago. E.H Taylor Single Barrel & Weller 12 Year. You can read both reviews HERE
- Financial Highlights for February:
- Continued bi-weekly deposits into Spousal RRSP, and TFSA however still just small amounts. We plan to up these after a few months at the new jobs.
- My previous work pension RRSP was transferred over, and I put it to work right away. In hindsight, I could have got a slightly better deal if I had waited a couple weeks – but as if I actually knew the market would dip, besides in 10 years, it won’t matter.
- Made the following puchases in February:
– 190 shares of Chorus aviation (TFSA)
– 175 shares of GoEasy (RRSP)
– 1500 shares of XAW (RRSP)
– 400 shares of Diversified Royalty (TFSA)
– 269 shares of New Flyer (RRSP)
- After these purchases, my forward annual dividend income went from around $9800 to $11,800. My goal for the year was $12,000, so barring any big setbacks, dividend cuts, etc I should hit the target!
- I was paid dividends from 5 companies, and 1 funds in February. I dripped a total of 25 new shares/units.
- Received dividend increases from Transcontinental, Diversified Royalty Income and the Canadian Equity Income Fund.
- Portfolio dropped in value for the first time in 6 months.
Passive Income Update For February 2020.
Diversified Royalty: $17.60(dripped 5 shares)
Artis Reit: $27.90 (dripped 2 shares)
Interrent Reit: $4.29
Plaza Reit: $14(dripped 6 shares)
Chorus Aviation: $11.84 (dripped 1 share)
TFSA’s Total: $90.77
Canadian Equity Income Distribution: $347.30 (dripped 11 new units)
Total Passive Income February 2020: $438.07
My portfolio currently sits at: $357,310.98. This represents a drop of 5.41% from last month. Although I never like seeing red…I know its all part of the game, and I plan on sticking to my plan and adding a bit each month.
Passive income in February was $438.07. This is usually the smallest month of the year, and with my new purchases, I hopefully won’t see another month below $500 again…EVER!
My forward annual dividend income is $11,800.15. I updated my portfolio, and expected dividends HERE