Thursday, April 30, 2020

Benefits, Danger with Monthly Dividends

Moez Mahraz, an analyst at 5iReserch talks on Money Letter the benefits and dangers of monthly dividend payments.

I must admit, I have never had a problem with fluctuating dividend payments. I take out from my trading account cash each month according to my budget. For me March, June, September, and December (the third month of the quarterly dividend cycle) have the highest level of dividend income and almost twice what I get in the other months.

I must admit I have heard complaints from others on dividend income about the fluctuations. I do plan. I have a budget. I do know budgets have a bad reputation, but that seems to be that people set up unrealistic ones. You have to set up a realistic one. I base mine on what I spent in the previous year, how I would like to change my spending habits, if applicable, on dividends I received in the previous year and on what I will be taking out of my RIF accounts.

I use Quicken to record my spending and income from investment. It is not the only product out there to use. I also use spreadsheets. Personally, I love spreadsheets but I do realize that what I do is not applicable to others and is not necessary. You can get the necessary information from using any applicable software. But if you are going to live off dividends, you have to plan accordingly to what money you are going to get and when you are going to get it.

On my other blog I wrote yesterday about Thomson Reuters Corp (TSX-TRI, NYSE-TRI) ... learn more. Next, I will write about McCoy Global Inc (TSX-MCB, OTC-MCCRF) ... learn more on Friday, May 1, 2020 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

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1 comment:

  1. Curious whether you use Quicken to project future dividend payouts. I know (unfortunately) its not an existing function in Quicken to schedule dividend payouts when you set up a security. Just wondering whether you have a work around?