September 2016 Dividend Update

September was a steady month on the dividend front, no purchases but lots of free money. However, an interesting trend developed over the last few months due to the steady increase in many stock prices. We generally had picked the number of stocks such that they would trigger automatic purchases each time dividend was paid. But as certain stocks have increase in value by more than 30% since we purchased them, this does not happen anymore. In short, we receive more and more cash into the account and we anticipate that by the end of the year we will have another €500-700 to buy a few more dividend shares (fees are about €7 per transaction).

September yielded a very nice €573 in dividends, yeah! Very exited about this. It actually is a YOY return of about 740%. But as noted last month, this is mainly due to a large amount of cash that we reinvested over the last 15 months and not “organic” dividend growth (that would have been really spectacular! But we are not magicians).

20160901-monthly-dividend

We currently own a total of 42 stocks, but due to the sale of RDSA shares after the dividend (in an attempt to make some capital gains and buy them back at a lower price, which by the way has backfired so far due to the OPEC agreed production level….) we now also dropped back below the “magic” number of 10.000 shares… bummer (just kidding).

20160901-dividend-overview

When you dump everything into a pie chart, based on the sectors the shares represent, you find the below overview. It’s not very well managed at this point as we would like less exposure to financial services stock and more to energy and consumer defence stocks (i.e. we have to buy some RDSA, UNA and AH in the next months).

20160901-dividend-stock-by-sector

How was your September? Did you get some money for doing absolutely nothing too?

Please follow and like us:

24 comments

  1. Nice work on the dividend growth in September!
    We had a slow-ish September, unfortunately. We couldn’t invest much because we have some large expenses coming up in October and we need the cash on hand. It makes me very fidgety, watching that money just laying around, being idle. We need to save another $20,000 in 2016 to stay on track, so here is hoping for a solid last quarter.

    1. Trust me, we know the feeling with cash sitting idle. But sometimes that is OK, you just have to convince yourself it is 😉 It’s not a bad feeling to have, makes sure you keep focused on the overall goal. Good luck with you final quarter, sincerely hope you make the $20.000.

  2. UNREAL!! 740% increase. Awesome stuff. Glad to see you are also getting the benefit from some appreciation here. While appreciation isn’t always the most important metric for a dividend investor, it is like the cherry on top of the sundae. How on earth can you get mad when your portfolio market value keeps on climbing, climbing, and climbing. Amazing stuff here. Keep up the great work!
    Bert

  3. Very impressive dividend growth rate! At the same time the value of your stocks also grow nicely. It clearly shows that even a year can make a big difference.
    Do you have any particular rule when you sell shares in order to realise capital gains, or you just follow your feelings?

    1. Feeling mostly, but that does not always work out well. The large majority is not sold be maintained as part of the buy and hold strategy. It is primarily the Dutch traded shares that we play with for capital gains and dividend income.

    1. Ha, nope, have seen one over 1000%. But it is out there for sure, too bad it is somewhat artificial due to the reinvestment of cashing in on former mutual funds.

  4. Wow anytime that you can have a positive month it’s a good month. Congrats on doing “nothing.” Although I would counter that investing in solid companies is doing a little more than “nothing.” I look at it more along the lines of being rewarded for your excellent research 🙂

  5. Nice offsets between 2015 and 2016 results! Trending towards freedom 🙂
    September was kind to me as well as far as dividends are concerned, contributing with 8% to my savings rate for that month. I do not monitor intrinsic growth on a monthly basis, so that one I don’t know.

    1. Ha, yeah, no……. I don’t think we will ever catch up on you. But that is ok, we aim to be able to live comfortly with a bit less.

  6. Aaah! 740% is a gigantic increase, well done. The financial effort you’ve put into building your portfolio is paying (LITERAL) dividends. I love the amount of growth of your graph and how diverse you are with your industries, looking at the pie chart.

    Our month was pretty good, we had our highest dividends month of all time, and almost broke 3 digits 🙂

    Tristan

    1. Hey Tristan,
      Yeah I say the amost 3 digit dividend. Awesome!
      We are actually a lot more interested to see the YOY dividend increase next year, which will be the first year of “organic” dividend growth.

  7. Crazy good results for the month of September. Congrats on bringing in some solid growing dividends. It’s cool that no new purchases were triggered. So you’ll be building up a nice cash cushion to deploy at a later date. We all know that better buying opportunities will come eventually. Thanks for sharing these inspiring results.

  8. Ciao CF,
    It looks like it was a very positive month this one! 🙂 I see many stocks that I do not know, it would help to see also the geographical allocation of the portfolio 😛
    What is the average YoC of all the holdings? (gross of course)
    ciao caio
    Stal

    1. The portfolio would be heavily concentrated around Canada 😉 The YOC is about 4.3-4.4%, we purchased all shares in the last 15 months, so we will have to see what happens over time with the YOC. Will certainly keep an eye out!

Leave a Reply

Your email address will not be published. Required fields are marked *