July 2026 Dividend Income Update
Hi Readers,
Welcome to our July 2026 Dividend Income Update!
For established readers (and any new readers that recently joined my free newsletter here (thanks folks!)), this is our monthly update to share how we are earning and now spending our annual dividend and distribution income.
Our portfolio structure was established back in 2009:
- We invest in a mix of about 20+ Canadian stocks for income and growth, and
- We invest in low-cost equity ETFs for extra diversification.
That’s our equities to help fuel our retirement spending.
Everything else remains in cash / cash equivalents for near-term 2026 spending…including more travel overseas.
July 2026 Dividend Income Update
Last month, we were so close to a new milestone.
This month, was a bit up and down.
First, the down.
Finally in long awaited dividend investing news, Telus Corp. cut their dividend by 55% recently and also lowered its financial guidance for the year in a bid to improve its finances after a challenging period for the telecom and technology company’s share price.
I read:
“The company’s decision to cut its quarterly dividend to 18.75 cents per share from 41.84 cents per share marks a broadly anticipated move from its new chief executive officer, Victor Dodig, as he reorients the company’s finances and strategic direction. Analysts have been raising concerns about Telus’s dividend growth plans since last year, when some called its previous plans to continue increasing its dividend unsustainable. Telus paused dividend growth last November, but has faced ongoing pressure from Bay Street to cut the payout.”
Like your household, company debt can be crippling to day-to-day operations.
“The company said Friday the dividend cut is expected to generate about $2.7-billion in cash savings through 2028, which will be used to reduce its long-term debt.”
That impacted our retiremenet income a bit but not very much since Telus stock remains just
I had been pricing-in a 50% dividend cut since November 2025.
Now, the up!
Capital Power (CPX) increased their dividend recently, which was nice, and since we continue to run DRIPs (Dividend Reinvestment Plans) only inside our Tax Free Savings Accounts, then any ETF units and stock shares inside these accounts got reinvested commission-free again this month to buy more assets – pushing our projected annual dividend income stream higher even after accounting for the large Telus dividend cut.
A good reminder about the rule of compounding:
Money that makes money, can make more money if you leave it alone.
Certainly, our income updates would be MUCH HIGHER if I/we didn’t invest in any ETFs for growth but so far year to date we’ve been rewarded – both of the low-cost ETFs we own are up double-digits in 2026.
We’ll see if that continues for the rest of the investing year…
As a reminder (and I mentioned this last month), we’ve owned XAW for growth for many years.
Since we’ve owned this ETF now for 10-years, well, I know our general performance with it:
Image sources: iShares.
The challenge with some individual stock investing is, including companies like Telus, some dividend cuts will happen from time to time but they are often offset by some dividend increases (like Capital Power just delivered). You take the good with the bad at times. That down and up routine played out again, this month, in our portfolio. I’ve seen this drill many times before. I’m sure I will see it again too.
The overall positive news story continues to be, a diversified Canadian stock portfolio that delivers income balanced with some low-cost ETFs for growth just pushes our projected annual dividend and distribution income higher and higher.
Our hybrid investing approach now forecasts our latest projected annual dividend and distribution income (PADI) should be over $86,000 this calendar year.
As mentioned earlier this year, we are not likely to reach our year end target of earning $90k this year without more investing but we shall see if we have any money to put to work…we’ve set aside near-term cash for a long trip to Europe in a few months.
We’ll share more of that travel fun on our new YouTube channel – so check that out when you can. 🙂
For reference in any monthly update like this, I’ve posted some important FAQs related to our portfolio income journey and reporting here. For example, I don’t include my future workplace pension nor any government benefits in these updates. We’re still far too young to accept those income streams!!
I continue to share these projections never to brag – I don’t share this information to boast about anything at all…rather, I share these updates to keep me/us accountable as part of our retirement spending and to highlight what a long-term, disciplined (hybrid) investing approach can deliver. We are early retirees thanks to our approach.
I look forward to sharing the next update with you!
Keep me posted in the comments section how your portfolio is doing. I love reading the comments.
Mark
Mark
My name is Mark Seed – the founder, editor and owner of My Own Advisor. As my own DIY financial advisor, I’ve reached financial independence and I’ve retired from the workforce in my early 50s. Now, I share my lessons learned for free on this site. Join the newsletter read by thousands every week.
