Today when I increased my common equity position in Sunlife Financial (SLF) in my Dividend Growth Portfolio (DivG) I achieved a targeted milestone for dividend income in that portfolio.
Late 2008 and early 2009 were full of opportunity for investors with the dedication, discipline and focus for long-term investing. I was fortunate enough to successfully initiate a leveraged dividend strategy in my Canadian portfolio as well as make some very disciplined purchases of depressed investments when the market was full of panic and fear.
Earlier this year I had set a milestone for the yearly generated dividend income in my DivG portfolio at $8,000/yr with the intent to achieve that level by the end of 2010. Using a conservative amount of leverage, key purchases and a balanced approach to the management of my portfolio I’m happy to say that today was the first day that I broke through $8,000 in yearly dividends for my portfolio income even with cuts to the dividends of some key companies I hold (Manulife, Russel Metals & Husky Energy). The exact amount, for those interested, on an annualized basis at current dividend levels is $8,015.03 spread amongst 31 investments (common equity, income trusts & preferred shares).
The goal of this portfolio is to eventually achieve financial independence where the passive income generated by dividends supplements my working income to achieve greater financial flexibility. Ideally the increase in dividends will outpace the rate of annual inflation preserving my purchasing power as a consumer.