Dividend Digger

Compound interest is the eighth wonder of the world. He who understands it, earns it . He who doesn't, pays it.

March 2016 Dividends and Recent Buy

Hey everyone, hope you guys and girls had a great Easter Holiday. I know I did, my girlfriend Kaitlin introduced me to Easter egg painting and it was so much fun. Who knew spending less than 10 dollars at the variety store would result in so much fun, and tasty goodness. March was yet again another successful month of passive income, but really though, as a dividend investor isn’t every month successful when you know you have that steady stream of free capital coming your way?

Since the beginning of the year my portfolio brought me in an additional $1951.47. Compound interest really is one of the greatest wonders of this world. My favorite thing about compound interest is overtime your results do not grow linear, rather they grow exponentially. It truly is a rush like none other when you feel the acceleration of growth year over year.

march 2016 table

March 2016 pi

 

 

annual dividends(2016)

March 2016:

$483.53

 

March 2015:

$204.29

 

Year to date dividends:

$1951.47

 

YOY increase of:

 136%

 

 

 

 

Recent Buy:

 

CN_med_red

Canadian National Railway (CNR.TO)

Overview: Canadian National Railway Company (CN) is engaged in the rail and related transportation business. CN’s network and connections to all Class I railroads provide its customers with access to all three North American Free Trade Agreement (NAFTA) nations. CN derives its freight revenue from seven commodity groups representing a portfolio of goods transported between a range of origins and destinations. The Company’s network of approximately 20,000 route miles of track spans Canada and mid-America, from the Atlantic and Pacific oceans to the Gulf of Mexico, serving the ports of Vancouver, Prince Rupert (British Columbia), Montreal, Halifax, New Orleans and Mobile (Alabama), and the metropolitan areas of Toronto, Buffalo, Chicago, Detroit, Duluth (Minnesota)/Superior (Wisconsin), Green Bay (Wisconsin), Minneapolis/St. Paul, Memphis, and Jackson (Mississippi), with connections to all points in North America.

 

My reasoning to buy this company was simple, it’s one of the biggest rail company with some of the largest railway networks in the world. The company may have a bit of lower dividend yield which is 1.88% but with the conservative payout ratio of a low 28% we know that this company will have no problem paying dividends for years and years to come. As well, CNR has a 5 year dividend growth rate of a massive 18%. Yep this company sure knows how to make money. For me, buying this company was a no brainer. Anyways, recently I purchased 220 shares of CNR.TO at $79.65 bringing me to a total cost of $17,529.95. With this purchase another $330, bringing my projected annual dividend income to $8348.38.

14 Comments

  1. Congrats on the dividend income, DD.

    Love the company – CN. Cant really go wrong with this investment, although I believe the valuation could be a bit more attractive. Thats also a massive purchase in one transaction. Looks like you went all-in.

    Best wishes
    R2R

    • Ace

      April 8, 2016 at 4:19 pm

      Thanks R2R,
      Despite higher stock prices, I feel as though I need more diversification in my portfolio. Considering the amount of financial stocks i own, it would be nice to have a reliable stock that creates money with its ground service. None the less this purchase is a bit bigger but it always did fall in my mantra of investing which is go big or go home ;)

      Have a good one!

      Ace

  2. I really like the year over year dividend growth you have. It’s safe to say the snowball is rolling. Nice job.

    • Ace

      April 8, 2016 at 4:20 pm

      snowball is rolling and its getting heavier and heavier as the months go by ;)

      Thanks for stopping by!

      Ace

  3. Awesome month and what growth from last year!

    Wow, you seriously dropped a ton of capital of the CN purchase. That’s impressive! Good luck with the purchase.

    • Ace

      April 30, 2016 at 3:02 pm

      Thanks Special Agent, that’s the beauty thing about dividend growth companies is that the longer you wait the more you make :)
      I sure did, it is not necessarily cheap to DRIP with CN thats for sure, but if i want to keep being the lazy investor that I am I gotta stay consistent with my investment strategy.

      Take care :)

  4. Wow! That’s an amazing year over year increase. Congrats to collecting those ever higher dividend payments. Earning almost $500 in a month is definite real cash that can pay for a lot of monthly expenses. Thanks for sharing.

    • Ace

      April 30, 2016 at 3:07 pm

      Oh yeah $500 can take care of a good chunk of monthly expenses, best thing about reinvesting that dividend is you have the comfort of knowing the quarter after you will have a tiny bit more ;)
      Thanks for stopping by, have a good weekend!

  5. Congrats on the awesome month those are some nice companies you own. Also really like your purchase of CNR. Keep up the great job can’t wait to read your next post.

    • Ace

      April 30, 2016 at 3:09 pm

      Thanks Matthew, I appreciate the feed back. Stay tuned for the next post, there have been some drastic life changing events that occurred recently and i cannot wait to share the news with you guys :)

      Best regards

  6. Hey Digger, Just curious why not average in to this one, it has been down prior to this purchase, I really like CNR as well but id much rather average into a position of that size! any advice?

    Cheers!

    • Ace

      April 30, 2016 at 3:12 pm

      To be honest there was no real strategy involved when i purchased that many shares of CNR at once. I just knew that is how much i needed for me to comfortably enroll in a DRIP with them. For me I focus more about starting a DRIP and then moving on to the next company. I am sure there are better ways around it, but then again that’s why i consider myself to be a lazy investor.
      Thanks for the question, have a epic weekend!

      • Good to know, They are an Awsome company and very well run so it should benifit you for sure. I have also tried to allocate on the Drip programs but have moved away from that now! Cheers and thanks for the answer!

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