2020 Forward Dividend Goal: $12,000
I don’t need to tell you this, but the markets have been pretty insane. I wasn’t expecting to make so many purchases so early in the year, but sometimes when a stock you’ve been watching for a year (or more) finally gets into a range you feel comfortable buying – you have to jump on it.
It’s only March 10, and already this year I’ve made five purchases. What did I buy?
Chorus Aviation: The industry have been hit hard, but just prior to the corona virus outbreak, this stock had reached a new 52 week high, posted pretty solid results and it’s leasing business was chugging along nicely. Short term pain for long term gain.
I added 618 shares which adds an additional $296.64 to my yearly dividend income. This allows me to drip an additional 6 shares a month at these prices.
Diversified Royalty Income: Another position I added to. I’ve held Diversified Royalty for a while now, and it’s performed pretty good for me – the only concern I ever had with this stock was the payout ratio – I’ve written about Diversified Royalty a few times, and every time I mention the payout ratio and the fact they need to add another royalty stream or two to get the payout ratio to a more manageable level. Well, after a long standstill with no acquisitions, the management team pulled off two quick acquisitions over the last year or so. It started with Mr. Mikes, which let’s be honest, was just meh…but it did allow them another stream and a bit of diversification. What came next was great though, within a couple of months, they added Nurse Next Door AND Oxford Learning. With the addition of these last two, they were able to bring down the payout ratio AND increase the dividend! I added 400 shares which adds $92.00 to my yearly dividend income, and allows me to drip 2 additional shares a month.
Ishares XAW ETF: With this purchase, XAW is now my single largest holding. I use it as a broad diversification tool, not just for the wide range of companies it holds, but for the global diversification as well. The rest of my holdings are mostly Canadian stocks or funds, which is the sole reason I chose XAW (it holds over 8000 stocks from companies all around the world EXCEPT Canada). I added 1500 shares of XAW, which adds $875.00 to my yearly dividend income, and allows me to drip an extra 30 shares a year.
New Flyer: I finally pulled the trigger, and initiated a position in New Flyer. This is a company I like holding for a few reasons. It’s local, it’s been a great success story, the dividend keeps growing, and I believe more and more cities will (and should) move towards electric/diesel buses. I added 269 shares which adds $457.30 to my yearly dividend income. At current prices, I should be able to drip 4 shares per quarter.
Go Easy Financial: Another company I added to. They’ve been a crazy success story in Canada, they generate a TON of free cash flow, they are increasing their dividend, buying back shares, and growing revenue at unheard of rates. Regulation could hurt them – but they could also expand into the USA for more crazy growth. I added 175 shares which adds $315 to my yearly income. Unfortunately RBC Direct Investing doesn’t allow Go Easy to drip shares at this time.
These five purchases add $1985.94 to my annual dividend income. This pushes my forward dividend income to $12,059.69!
Assuming there are no dividend cuts (knock on wood), this means I’ve hit my 2020 Forward dividend target of $12,000 and it’s only March! I’m not sure how much (if any) more I’ll buy this year, or what my forward dividend income will be at the end of the year, but it feels good to actually hit a goal. I’m usually terrible with goals. Hell, the last 2 years I made a January Goals post, and never followed up with them once…so I’m going to enjoy this one just for a minute or two (before I start feeling bad about the other 10 goals I made that I didn’t follow through on….)