Welcome to 2023! Today a quick look at the December 2022 dividend update and the overall yearly numbers of course. It’s been a great month and year, albeit the exchange rate had some impact to prevent a record month in euro terms. We did actually pull it off in CAD: $1505 in labor free income in December. Lovely.
Dividend Income
In 2022 we hit 8 months with more than €1.000 in divided income, which is an absolute record. In the previous years we didn’t even manage to get to that monthly number! Now, one month has it’s cause in a special dividend, but that still leaves 7 months of more than €1.000 in dividend income.
Add all this up and you get this yearly overview (in Euro’s):
2022 has been a very good year to say the least. Some is driven by the exchange rate, and one special dividend, but most is really increasing dividends and DRIP-ing of shares. (DRIP = Dividend ReInvestment Plan = dividends are reinvested, sometimes with a discount to the share price and no fees for the conversion).
History and organic growth
This dividend portfolio is (currently) our self-managed actual pension (all shares are held in Registered Retirement Savings Plans (RRSP’s) in Canada). So, it better improve on a yearly basis otherwise we are screwing future (retired) selves. Albeit we can access this money before age 65, we don’t want to touch this until we have very little Box 1 income.
When you take out the European shares we shortly held back in 2016/2017 (leaving Canadian shares only) and take away the Exchange rate fluctuation, you get this organic growth (only funds added in 2015 – reinvested since):
Want to see more of these pretty graphs, have a look at what Bob did! That’s just pure Dividend porn.
Sector distribution
We have a fairly conservative portfolio with many boring companies. When you plot them in a pie chart, you get this:
We are currently happy with this distribution, but there are definitely changes expected in the future. Primarily depending on whether we all get serious with our carbon emissions. It is perhaps not a bad idea to take some profit from the energy sector and increase holdings in the financial sector and diversify more. We don’t increase real estate soon, due to increasing interest rates. Utilities we will likely keep as is.
Dividend Portfolio Details
As noted earlier, our dividend portfolio is held in two tax deferred accounts in Canada (RRSP’s). The current value (before any withholding taxes) and stock overview is provided below:
How’s your dividend portfolio doing?
Good to see you back!
Until I read your blog, again 100%, I am asking if you recover the old articles (where I learned a lot).
Claudia, from Brussels
I might recover a part, still debating and finding time (renovations take priority as you can imagine).
Good to have you back!