On February 24th, I added 30 shares of National Bank of Canada (TSE: NA) to The Dividend Beginner’s portfolio. I purchased the shares at $35.18, with a trading cost of $6.95 for a total cost basis of $1, 062.35.
NA pays an annual dividend of $2.16, so I scored the shares at a starting yield of 6.14%. Since I purchased 30 shares of the bank, NA adds $64.80 to my annual dividend income, or $5.40 per month on average. NA has increased their dividends consecutively for 6 years. My 12-month forward dividend income has increased from $1, 376.70 to $1, 441.50, an increase of 4.71%. This averages out to a monthly passive income of $120.13.
|Before NA||Net Increase||After NA|
|Annual Dividend Income||$1,376.70||$64.80||$1,441.50|
|Monthly Dividend Income||$114.73||$5.40||$120.13|
To find out why I purchased shares in NA, you can read my Dividend Stock Analysis of National Bank of Canada, which goes into great detail about NA’s
- EPS & Revenue Growth
- Recent Maple Financial Group write-down
- Share dilution
- Analyst recommendation
- Dividend Growth
- Expected Yield on Cost
- Stock Picking Strategy Check List