October 2016 Dividend Update

October was a relatively steady month on the dividend front. We purchased some UNA (100 shares, in two batches of 50 shares to profit from the steady drop in stock price) this month and got lots of free money. October yielded a very respectable €545 in dividends. This is a YOY return of about 298%. But as noted last months, this is mainly due to a large amount of cash that we reinvested over the last 16 months and not “organic” dividend growth. Albeit we are very curious to see what that is going to look like. Yield this year (to date), based on book value, is about 3.45%. With two more months to go, we should end up just over 4.1%.

   20161101-monthly-dividend

We currently own a total of 43 stocks and our portfolio looks like this:

 20161101-dividend-overview

When you dump everything into a pie chart, based on the sectors the shares represent, you find the below overview:

 20161101-dividend-stock-by-sector

We still have some work to be done, as we still need to purchase more stocks to shift the sector allocations, but that is a plan in development.

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18 comments

  1. Wow! What a great month, and graph, your dividends have shot up extremely nicely in the last year. In a year from now you could be getting over $1k in October! 🙂

    I love your portfolio, very diverse, even though you do want to change it a little bit.

    Tristan

  2. Great numbers!
    As I understand, you re-invest the monthly cash dividend directly into new shares, correct? Or are there also drip’s?

    1. Hey Sander,

      The reinvestments are primarily done through drips, albeit some do transfer into shares like RDSA. But we are approaching cash levels in the coming months to deploy some fresh capital too.

  3. 545, nicely done!
    I’m curious, why do Shell and Ahold show up as 0 in your chart? Did you recently get rid of them and just not remove the entries? Or are you planning to make a move on those two soon?

    1. We used to have RDSA and AH, but sold to cash in on some profit. Still planning to buy them back at lower values (AH is going in the right direction, RDSA not so much). That’s why they are temporarily at zero.

  4. Wow great dividend income and a nicely spread potfolio.

    As a starting fellow dividend growth investor I was wondering if you know some decent euro based dividend growth stocks or websites where I can find some information about that.
    I have only a small portfolio at the moment but most of the wellknown dividend growth stocks are US/Canada based.
    I am worried that Euro/Dollar rates will effect how much I need to invest to be able to live off the dividends in the future if I base my portfolio on just North American stocks.

    How do you cope with that “risk”?

    1. Hey DD,
      No More Waffles has a great tracking sheet for that, which you can find here: http://www.nomorewaffles.com/euro-dividend-all-stars/ (mind you, it has not been updated in a while, but it is a very good starting point).
      As for the exchange risk, that’s a point of lots of discussions. For us the basics are this, we don’t time the currency exchange market (in the same way we don’t time the stock market). A small cash pile will be put aside to accommodate temporary fluctuations, beyond that a slightly bigger buffer/FI fund to accommodate say 10% in negative fluctuations may be beneficial.
      In short, you may need to create a bit bigger FI fund to accommodate the risks associated with the currency fluctuations. How much bigger the FI fund needs to be is up to your risk profile.
      Good luck

  5. Doesn’t matter if it’s organic growth or from new buys it’s going up and that is all that matters in the end congrats on a great off month.

    1. Thank Doug, fair point up is always good! It is just that we are curious (and granted, we can calculate this) if we picked the “right” stocks. Origanic dividend growth would make that nicely visible in one graph.

  6. I like how diversify your portfolio is. You’re so organized and put in different sectors. Your dividends are going way up each month year-on-year. I love it!

    Mine is BAC took over the whole chart. I want to sell some BAC but I might have to wait for the breaking up of the banks to see if BAC will spin off Merrill Lynch or not.
    It’s probably going to be a long wait for me.

    In the meanwhile, I’ll keep buying other stocks to ad on to my Portfolio.

    1. Buying more stocks will shift your diversification in your portofolio too, might be the easiest way for now to redistribute (until such time you can sell BAC).
      Take care Vivianne

    1. Not bad eh? Next month won’t be as good though. But I do hope to hit the 4% yield target by year end. Depends a bit on how many additional stocks we buy, as the calculated yield is based on total book value, the additional shares will not have added dividend but will add to the book value….a portfolio in motion 😉

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