Yearly Dividend Income Up
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A while back I sold my Merck and BCE shares due to lack of performance and confidence in the companies and stocks. As a result, my yearly dividend income took a bit of a hit. Merck contributed about $51 per year and BCE about $79. A relatively big chunk of coin in terms of reinvestment potential.
However, I have been diligent in the past few months in trying to replace those streams. The addition of stocks like P&G and some additional purchases of Pfizer have helped me recover quite well. After the sales I was sitting at about $899 per year and as of today, I receive $930 per year. I still have a bit to go to get back up to the $980 level but it will happen as I complete more purchases and continue to reinvest dividends.
Keep in mind that I do not focus on the amount of money a stock will provide me in a given year when selecting companies to purchase, but rather the growth of the dividend payout that the company has historically made. This is where the growth comes from – both in terms of share price appreciation and dividends received.
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6 Comments on this post
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James said:
Hi, I enjoy reading your blog. Some questions on reinvestment of dividends? Are you doing this via drips, CSA or pseudo drips through a broker or a combination of all three? Are you investing the dividends automatically back into the same companies that paid them or investing the proceeds from the dividend whereever you deem appropriate?
Thanks for your comments
JamesJuly 30th, 2006 at 5:37 am -
The Dividend Guy said:
I do my reinvestment through the CSA – the dividends are reinvested right back into the underlying shares. I have confidence in the companies I purchase to keep reinvesting in them. If things change for a company, then I would reconsider not reinvesting them, but that would need to be a pretty big deal for me to do so.
August 4th, 2006 at 8:53 am -
garrett said:
How much do you how invested!?
August 7th, 2006 at 3:54 pm
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