April 2016 Dividend Update

First off, there was upward correction for the March number as one dividend payer came in early and shifted into March instead of April where it was assumed (plus made a mistake with the exchange rate). So the total for March came in at just over €681, wow, that really was a good month!! As we have several shares that register on one of the last days of the month. We (try to) wait until we have received all dividends into the investment accounts before we report the final income from Dividends, but sometimes pull the trigger too soon to give you guys an update 😉

Dividend Income Update

April was a good month in terms of dividend, but it was dwarfed a bit by the amazing month of March. Still a very healthy number as you can see below:

20160501 Monthly Dividend

Dividend Stocks

Here is an overview of our dividend stocks (we currently have 40 different stocks):

20160501 Dividend Overview

April 2016 Dividend Stock Overview

Market Sectors

If you group the above dividend stocks by sector, the distribution of our portfolio is as follows (based on market value at close of markets on April 30, 2016):

20160501 Dividend Stock by Sector

Dividend Stock by Sector

As you can see, the sale of RDSA last month (which was a stupid move in hindsight, capitalized too soon on some capital gains and the stock remained very strong during the months, so no opportunity to buy it back yet….) drove down the energy sector allocation a lot. However, we did end up buying some UNA and AH, as well as AGU.to and AQN.to last month. Increasing the consumer defensive, basic materials and utilities in the dividend sector allocations.

 

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22 comments

  1. Team CF,

    Seriously impressive numbers – keep it up, guys! At this rate you’ll be rolling in money in a couple of years. 🙂

    You own quite a lot of Northern-American companies. Do you guys have any plans to diversify with European dividend stocks? There are plenty of good opportunities out there with decent yield (although the market has picked up in the past couple of weeks).

    I’m jealous of your Unilever position though! Can’t wait to own that many shares, ha!

    Cheers,
    NMW

    1. Hey NMW, the high number of Canadian stocks is because of our Canadian Retirement Accounts. For Tax reasons, the Canadian stocks are very attractive, we therefore have such a high number of them (we reinvested all ETF’s in those accounts into Dividend Stocks). We are further diversified with global ETF’s, Real Estate and crowd funding. Albeit, we are planning to further diversify the dividend portfolio with more European stocks, but this process will be slow.

      Unilever is also a bit of play money, been buying and selling those shares regularly lately, have generated about 4-5 times the normal dividend ROI so far (+ the dividend of course).

      Take care!

  2. That’s a pretty long list of companies paying you in April. Nice to see some diversification with your income stream. Though less than March, it’s still quite impressive and I’m sure your year over year totals will be nice this time next year. Happy to see a few Canadian banks paying you as well. Thanks for sharing.

    1. Hey DivHut,
      thanks for visit. Yes, it starting to become quite the list of companies we own and that pay us regularly. The Canadian banks certainly are nice to have!
      Cheers.

  3. Hi – i just found your blog from Amber Tree Leaves. Pretty impressive results for 2016. What is the overall yield? I also did a silly mistake a sold a stock I’d been holding for too long (down 20% over the year) and of course the day after I sold it, it went up by 5%. Murphy’s Law I suppose.
    BTW Amber Tree Leaves recommended you to me as I’m doing a Personal Finance Olympics and wondering if you’d like to represent the Netherlands (he is representing Belgium)? It involves doing a post on what it is like from a personal finance perspective and lifestyle perspective, to be published during the Olympics in August. More info here https://thepersonaleconomist.com/personal-finance-olympics-would-you-like-to-represent-your-country/. Let me know if you are interested – thanks. Look forward to following your blog too.

    1. Hey PE,
      The overall yield (based on book value) ranges around the 4% mark at the moment, but it fluctuates a bit as we are still buying stocks and dividends increase/decrease.
      And as for the Personal Finance Olympics, sure thing, we would love to represent the Netherlands.
      Cheers!

      1. Interesting, that is similar to the yield on my investment property (based on current prices). Re the PF Olympics –Wonderful thanks I will add you to the list and link to your site.

  4. Sweet dividend month, from many Canadian companies too (half of our team is Canadian!). 😉 Your figures and making me consider switching from growth to dividend stocks, as we plan to drastically reduce our income soon when we leave Europe.

    1. Yes, the month was pretty good, and it will only get better! That is why we like dividend growth investing. Highly recommend DGI (and some index funds to balance the portfolio) for the slow travel, no management required and continuous cashflow, very handy!

  5. April looks like a solid dividend month to me CF. Not every month is going to be a record setter!

    Some day soon, your dividend income is going to start looking like mine – exceeding your monthly expenses! (on average).

    Can I ask why Unilever is such a large percentage of your portfolio? Most positions you have are around 3-4%, but Unilever is 9% Why is that?

    1. Honestly, the dividends will probably cover about 30% of the income during FI, the rest will be Real Estate and capital gains from ETF’s. That being said, the dividend income is doing rather well actually.

      As for UNA, we use that stock and RDSA, also as play money. So I try to buy and sell and benefit from some capital gains (which are tax exempt), whilst at the same time receiving dividends during most months. Has been fun and financially rewarding so far.

  6. Hey CF, I see a very healthy increase from October – which I imagine is the most comparable month to April. By the time you start reporting on the same months again, there will be solid increases 🙂

    Tristan

    1. So true, kind of looking forward to that point to see some outrages yoy results (which are completely artificial as we started to reinvest about €150000 a year ago and are about 80% there). But in the long run the increases will be less dramatic as the Canadian accounts won’t get any more contributions (other than the reinvested dividends).

  7. Ciao CF,
    I see some Canadian securities, or am I mistaken in reading the list? Do you buy them in Canadian dollars?
    It’d be nice to see the net yield of the single stocks, most of them are totally unknown to me, so it’s actually pretty good because it forces me to do some additional research. Anyhow compliments on the allocation and results, it seems that the PF is shaping up really well, gearing up to be 1 year old… 🙂
    Ciao ciao

    Stal

    1. Nope, you are correct. We have a Canadian retirement account with lost of Canadian stocks (primarily for tax reasons). We do have all the data you are looking for, but not in a format we can quickly post. Will see if we can do a half year overview of some sort.
      Groeten!

  8. Excellent numbers. March really stands out.. April is doing fine as well.
    Unilver is high on my list as well. I doubt between the NL and UK listed ones. The advantage from the AMS listed ones are options… For the UK, I read somewhere they have higher dividend due to the lower UK tax. DO you know anything about this? The same goes for RDSA by the way.

    1. Hey AT, got to admit that we have not looked into the difference. For us the dividend tax is 15% (for AMS stocks), and I believe the purchase fees are lower for the stock exchange in Amsterdam. Therefore we have not given it any thought and just purchased at the AMS. But you have gotten me interested, should have a look into this.

    2. You are correct, if I am not mistaken UK dividends are free of tax up untill 5,000 GBP. However, depending on where you live and how big your portfolio is, it still doesn’t mean that the UK stock is better.

      i.e. If living in NL and your total net worth is below the threshold, you will get all paid dividend tax on NL stocks back as well.

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