Dividend & Portfolio update – December 2016

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We have been investing for 2.5 years now. We started our journey half way through 2014 and shifted to DGI half way through 2015. Looking at how far we’ve come, what we have learned and all the great things that awaits us in the future, I have absolutely no regrets.

This dividend income report will be the last of 2016, but I’m sure there are still many, many to come in the following years.

We are slowly building up and continue to grow our portfolio, and with that our dividend income. Some day, we arrive at the point were this dividend income will overshadow our core expenses. When that day arrives we will be able to call ourselves financially independent. That same day will not be our end goal, we will pushing ourselves to continue investing, learning and growing every single day. Our goal is to fulfill our lives with happiness on our own terms. The best part? We don’t need to be financially independent to reach this goal. The goal is not and end to be reached, but a way of life. And everything we do, every choice we make is because we believe it adds value to our lives.

The past year was one hefty year of investing, we almost doubled our portfolio worth over the course of one single year. We managed to have an outstanding savings ratio looking at this is only the start. And we’re surrounded with awesome people in this personal finance community of whom I get so much inspiration.

New portfolio additions

For december we had planned to make 2 more buys before the year would end. We only made one: Nike ($NKE). We bought 42 shares in the beginning of december, adding an estimated €28 (net) to our yearly dividend income. We haven’t made a second buy because we couldn’t really decide on which company. And we wouldn’t want to rush things just to fix in on the target of making 2 buys. Were long term investors anyway and we all know you can’t time the market. So, what’s the rush?

Portfolio worth

We set a goal to achieve 35.000 of invested capital (which we just fell short on). However, if we include our cash position our current invested capital is: €37433.05.

Want to know our positions? Check them out here.

At the beginning of the year, our total portfolio was worth € 21566.71. Which seemed so much back at that moment. One year later, we nearly doubled (+93.8%) our portfolio worth to €41796.62. Which is just amazing. It would be even better if we could double our portfolio worth again in 2017, but that would be a bit unrealistic 🙂

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December and yearly dividend

The best dividend month of the year is for most also the last month of the year. This may happen because you are still building up you portfolio throughout the year, hence the most payouts in the last month, or because a company decided to pay out a special dividend.

With a portfolio consisting of companies paying quarterly dividends, this is almost always the case. For us this is a little different due to 2 companies which pays us both a yearly dividend in may. Marking this month the one in which we get the most dividend income.

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In december we received a total dividend income of €136.90 (net). Our dividends have grown substantial with +73% compared to the same month last year.

For the past year, our total dividends have grown even at a much higher rate compared to the total of 2015. Not that strange, considering we only started with dividend growth investing in april of 2015. Below you see the monthly payouts we received and how the were compared to 1 year before in the same month.

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In total we received €849.31 in dividend income for the past year. One year earlier, in 2015, this was only €248.02. Which means our dividend income has grown with +242% over the course of 1 year.

Next years look out

All the dividends that we are receiving will be increased (hopefully) by the companies that pay them. Although it’s never a certainty that those dividends will be increased, we buy shares from solid and quality companies of which we believe that they can grow their earnings and their dividends for the many years to come.

By the increases in dividend pay outs, and because we are consistently adding new capital to our portfolio the compounding effect will continue to grow as well. The biggest output of compounding is taking into effect for the long term, when every euro invested now will grow to new heights every single year.

For 2017 we hope to accelerate this even more. How? Because we still have a car for sale, and hope to sell it somewhere in the coming months. This will free up a huge amount of extra capital, expectations are around €13.000, of which the biggest part we will invest in stocks.

We’re very excited in all that the new year may bring. Not only for ourselves, but also for you and all the others in the personal finance community. Knowing that every month and every year we will all be one step further in fulfilling our journey.

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22 thoughts on “Dividend & Portfolio update – December 2016

  1. It’s always very satisfying to make such overview, isn’t it? Every review is a proof that smart and continuous investing really does worth the effort.
    I really like the charts you are using. May I ask which software are they made with?

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  2. Your portfolio almost doubled!!! That is truly amazing work. Congrats I am absolutely floored. Keep up the awesome work and I definitely look forward to reading your reports for years to come 🙂

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  3. Looks like you are doing all the right things with your portfolio. It has grown quite nicely along with your dividend income. Keep picking up solid companies like NKE and others for stable dividend growth. Look forward to following your progress in ’17.

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  4. Yes! Yes! Yes! That is how you finish off 2016 on a strong note. A 73% dividend increase in December is amazing. I like the purchase of Nike that you snuck in there before the end of the year. Getting ready to crush it in 2017??

    Bert

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    • Thanks Bert, it sure is. Hopefully 2017 will be good to all of us.

      Although Nike is not a high-yielder. We now have a much broader portfolio to generate some solid income for this and many years after. Just keep on going!

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  5. Hi Divnomics,
    Well done indeed! What a great finish for the year! Both charts, the monthly dividend income and the portfolio value look amazing. Great job!
    I hope you will be able to sell your car soon, so that you can increase your portfolio even more.
    Best wishes,
    DIB

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  6. Great Progress Divnomics. I followed very similar path since 2013. Keep up the great progress

    Do you have a dividend income target for 2017? We also want to push everything we can in our portfolio to accelerate the growth

    You can read all about it at our new blog http://www.dividendcake.com.

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    • Thnx! We haven’t set up a hard target, but I hope to achieve around 1300 euro on dividends for the year. Depends a bit on the how much funds we can allocate.

      You dividend growth is very strong though! Seems like you’re on the right track 🙂

      Like

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