Dividend Investing Works: Here’s The Proof

We’re coming up to a year and a half since the launch of my Strategy Lab model dividend portfolio, so this seems like an appropriate time to review its performance. I’m pleased to report that the portfolio is performing as I had hoped. My goal at the outset was to assemble a group of companies that would pay me a growing income stream, and that is precisely what has happened. At inception, the portfolio paid a projected $1,875.84 in dividends annually, for a yield of 3.75 per cent based on the hypothetical initial value of $50,000.

One stock (T) has raised its dividend three times, nine have raised it twice (BCE, BMO, CU, ENB, FTS, KO, MCD, RY, TRP) and one (PG) has raised it once, with a second increase expected in April. The remaining security, XRE, has raised and lowered its distribution a few times to match the cash flow of its underlying real estate investment trusts, but the good news is that the current payment is 14 per cent higher than it was when the portfolio was started.

Source: Globe and Mail

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