This should be the first post in (hopefully) a long (or short?) series of updates on our way to financial independence. As noted here, we had some difficulties deciding which assets we would use to become financially independent. We saw upsides and downsides in all types of assets, so we decided to try them all.
This post series will be solely dedicated to our dividend stocks and will cover dividend income, purchase of dividend stocks and ultimately year over year increases.
So without further ado, please find below an overview of our dividend stocks:
The experienced readers among you will note that these stocks are primarily traded within only two countries (and the USA is not one of them), this is not a coincidence and has to do with limitations as a results of retirement accounts and avoiding double taxation. We are already, and will be in increased capacity, exposed to American stocks via the Meesman Worldwide Stocks ETF, so we ok with not directly owning US dividend stocks (note, this may change in the future, but with the declining value of the Euro vs. the mighty greenback, this probably won’t happen in the near future).
If you group the above dividend stocks by sector, the distribution of our portfolio is as follows (based on market value as of November 20, 2015 at 10:00 Amsterdam time):
As you can see in the above figure, not all industries are represented. Two major industries not included are IT and healthcare. This was not done on purpose but a result of available stocks and research done to date. Over time we may add stocks from these sectors to our portfolio, and we will likely also try to re-balance the distribution to avoid being too heavy on energy stocks (energy stocks are a double edged sword, as they can be both lucrative and volatile).
Since inception of the dividend stock portfolio in July 2015, this is what our dividend income has been so far:
We had the opportunity to drastically change our portfolio by mandatory selling ETF’s as a result of changing retirement accounts and receiving a significant sum of money as a result of our home sale. As a result we have a considerable cash pile to re-invest in dividend stocks. Our month over month dividend growth will therefore be rather large initially, but this will taper off in the next year once the majority of the cash pile has been invested. For all beginning dividend investors reading this post, please don’t compare our growth with yours as it would be an apple to pear comparison!