Monday, April 27, 2009

income from investments at $8.93/day

It has been a while since I updated the status of the income we are receiving from our investments inside our non-registered account. Recently I have suffered three dividend cuts within our portfolio. General Electric (GE), Bank of America (BAC), and Husky Energy (HSE) all cut their dividends significantly, and I continue to hold all three stocks because I still believe these companies will prosper long term.

Procter & Gamble (PG), Johnson & Johnson (JNJ), Fortis (FTS), Diageo (DEO), Sysco (SYY), and Telus (T.A) have all raised their dividends recently. I expect Clorox (CLX), and Walgreen (WAG) to increase their dividend over the next few months.

Since Lehman Brothers failed in September of 2008 and the stock market fell off of a cliff, I have poured a significant amount of capital into our portfolio. In summary our income from investments is now sitting at $3,258 which is roughly 56% higher than we were earning pre-Lehman failure. During the same time frame our portfolio is up about 42%.

Our portfolio is currently yielding 5.5% and has a yield on cost of 4.2%. 9% of our portfolio is tied up in dividend re-investment plans.


Dividend Growth Investor said...


That's a pretty inspiring number. You probably forgot to add that your "third source of income" is also making 8.93/day during weekends and national holidays as well however.

Those raises from JNJ and PG are pretty awesome if you ask me. Keep up the good work!

Dividend Growth Investor

Sampson said...

Great stuff MG.

How do you decide which holdings to participate in the DRIP? Is this a real DRIP program directly with the companies? Do you do the synthetic DRIP?

I wish I could say I've been pouring money in, but I've been largely on the sidelines.

MG (moneygardener) said...

DGI, Indeed.

Sampson, They are directly with the firms. I elected to DRIP these early on and have held off on starting any other drips for various reasons including buy timing, and consolidation of my account.