January 2023 dividend update

Welcome to February! Boy, does life go fast when you get older… For those who complete Dry January successfully, well done! Without further delay, here is the January 2023 dividend update.

Dividend Income

In 2023 started again with another €1000+ month in dividend income terms. We continue the trend that we stated in 2022 with many months bringin in over €1000 in dividend income, and we like it!

January 2023 Dividend Update: monthly overview

Add all this up and you get this yearly overview (in Euro’s):

January 2023 Dividend Update: yearly overview

2022 has been a very good year to say the least. We hope that 2023 will still beat it though. The DRIP (Dividend ReInvestment Plan = dividends are reinvested, sometimes with a discount to the share price and no fees for the conversion) is still going well, which should help a lot in continuing the dividend income growth.

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):

January 2023 Dividend Update: yearly overview (organic growth)

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:

January 2023 Dividend Update: sector split

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:

January 2023 Dividend Update: portfolio overview

How’s your dividend portfolio doing?