Can Dividends Cover My Expenses? Not Quite, But Let's Break Down the Numbers for Fun!

Here we are, already in February! To offset all this tariff drama that kept me busy all weekend (not to mention that Monday was quite a nightmare), I at least got one good surprise. It looks like I’m closing out January with $4,042.92 in savings—even after paying my February rent! My goal was to hit $4,000 in savings by the end of January. I thought I wouldn’t make it, but my dividend income happily came to the rescue, pushing me over the 4k.

Now more than ever, it's crucial to build up savings. In this economic climate, I don’t think anyone can afford to go without some financial cushion. Sure, Employment Insurance (EI) is there for most workers in case of a layoff, but there’s always a waiting period before that first EI payment arrives. I’m not sure how long the delay would be, but in the meantime, wouldn’t it be comforting to have some savings to rely on? Just me saying.

By the end of February, I should have $5,750 in savings. Ideally, I’d like to reach $6,000, as that would allow me to keep $3,000 in each of my two bank accounts to avoid monthly fees. If I don’t hit that goal by the end of February, I’ll get there eventually!

I’ve lived on very little money before, sticking to a tightly controlled budget. It wasn’t hard for me back then because I was focused on building my investment portfolio. I knew exactly why I was doing it. But living on a budget now is very different from the pre-COVID era. I track my expenses and budget in an Excel sheet, and here’s what my minimum viable monthly budget looks like:

• New Brunswick: $1,285.75
• Montreal: $1,592.73

When I first moved to Montreal, I could live on a single paycheque from my job—without relying on my dividend income. Sometimes, I even had a little left over! But that’s no longer the case. Today, one paycheque only cover my living expenses in New Brunswick. And with a potential rent increase in Montreal, I’ll likely have to adjust my budget upwards.

Thankfully, my dividend income is also increasing!

Today, TMX Group Limited (X) announced a 5% dividend increase. Recently, Brookfield Renewables (BEP.UN, BEPC) and CN Rail (CNR) also raised their dividends by 5%, while Metro Inc. (MRU) announced a 10.4% dividend increase. Thanks to these increases, my monthly dividend income from my non-registered and TFSA portfolios has reached $915.

That might not sound like a lot, but let’s break it down:

• New Brunswick budget: $1,285.75 – $915 = Only $370.75 left to cover
• Montreal budget: $1,592.73 – $915 = Only $677.73 left to cover

That $677.73 gap is all that stands between me and my "financial independence" in Montreal. Of course, this is just an illustration—with such a small budget, there’s no room for vacations or any extras. However, if I could find a way to cover that amount, I’d have total peace of mind in case of employment uncertainty.

If I include my RRSP dividends, my total monthly dividend income jumps to $1,117.72! As always, I don’t factor in the dividends from my RRSP—at least not for now.

I love playing with numbers like this because it shows just how powerful dividend investing can be.

My monthly budget for both New Brunswick and Montreal doesn’t include Netflix—because I canceled it. I’m enjoying my last few days with the service before my subscription officially ends. After Donald Trump’s tariff threats, I felt a patriotic obligation to cancel Netflix. It’s not something I’ll miss too much, but I admit—Netflix is fun. I also recently deleted my Twitter/X account. I’m doing my best to boycott the U.S. as much as possible.

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