All That Fuss for What? April Dividend Income Report — A Fresh Perspective
In 2016, I made a significant life change. I took a sabbatical, loaded my family into a small RV, and we traveled all the way to Costa Rica. The journey was life-changing, both personally and professionally.
Upon my return in 2017, I left behind my position as a private banker at National Bank to fully engage in a new venture: Dividend Stocks Rock. At that time, I also decided to take charge of my pension account, which remains locked—it can’t accept new contributions, so all growth must come from capital appreciation and dividends. I have publicly tracked this portfolio from the outset to provide a transparent, real-world investing case study. My choice was to invest 100% of the funds into dividend growth stocks.
Fast forward to the beginning of this adventure in August 2017, I started with $108,760.02 in that locked retirement account. Now, on May 1, 2025, here’s where things stand.
Portfolio Performance Summary
– Starting Capital (Sept 2017): $108,760.02
– Current Portfolio Value: $281,489.15
– Total Dividends Paid (TTM): $5,207.95
– Average Dividend Yield: 1.85%
– 2024 Portfolio Performance: +26.00%
– Year-to-Date Benchmark Comparisons:
– VFV.TO (Vanguard S&P 500 ETF): +35.24%
– XIU.TO (iShares S&P/TSX 60): +20.72%
– Dividend Growth (2024): +12.22%
– Overall Return (Sept 2017 to April 2025): 158.82%
– Annualized Return: 13.52%
For context, VFV.TO achieved a 14.72% annualized return over the same period, while XIU.TO saw a return of 10.52%.
The Noise Around a 2% Drop
When I last assessed this portfolio (as of April 2), the headlines were bleak. Discussions of bear markets and even “stagflation”—a term not used seriously since the 1970s—were circulating again after political statements stirred concerns.
So, what kind of impact are we really seeing?
A decrease of just 2%. Merely 2%.
While the media blared about a market crash, the actual numerical decline? Minimal. It serves as a prime illustration of how volatility can skew perception more than reality.
So, What’s Driving This Volatility?
Let’s delve into a few of the elements influencing the recent market fluctuations.
1. Unstable Information Flow
Since Trump’s reelection in 2024, tariffs have taken center stage in discussions. However, the real concern lies in the inconsistency and absence of concrete details. Policies that shift within 48 hours sow uncertainty—and uncertainty is the market’s greatest adversary.
Markets flourish on expectations and projections. Investors and analysts formulate models based on anticipated results. If that essential information is in constant flux, market discipline collapses.
It’s akin to making plans to purchase a house with someone who keeps wavering on their decision. Would you still proceed with the deal?
2. Leveraged Trading & Hedge Funds
Post-2008, hedge funds became more dependent on leverage—borrowing to invest. Leverage can amplify gains but also escalates losses and volatility.
When markets decline, margin calls are triggered. Investors must provide additional collateral or risk having their positions liquidated. This process can incite further selling, creating a domino effect that drags the market down in a chain reaction.
3. Underlying Fundamentals Remain Strong
Despite the market turmoil, dividend payments are on the rise!
This is my primary measure of portfolio health. While shares in some companies may have fallen, their earnings and cash flows remain robust—as shown by increasing dividend distributions.
Therefore, even as headlines scream panic, I concentrate on actual business performance.
Smith Manoeuvre Portfolio Update
This additional portfolio now encompasses 13 companies across 8 sectors. Built on the “Dividend Triangle” (revenue, EPS, and dividend growth), it aims for both yield and reliability.
– Current Yield: 3.44%
– 5-Year Dividend CAGR: 11.08%
Recently, I added Dollarama (DOL.TO) utilizing $850 in available cash. Dollarama’s growth model—compact stores, private-label focus, and targeted international expansion—aligns seamlessly with consistent performance and scalability.
Streamlining Reporting
I’ve also started extracting portfolio data directly from my DSR PRO dashboard, which saves time and enhances accuracy. Now, reports feature ratings, expected dividends, and capital gains/losses per holding.
Pension Account Summary (as of May 2, 2025)
– Portfolio Value: $281,489.15