Tuesday, November 4, 2014

Monthly Update: October 2014

The month has passed and it's my favorite time, giving an update of my dividend portfolio. I've updated my benchmarks to include the total return indices, instead of only the stockprice indices. This seems like a better comparison.

IndicatorAs of 30-9As of 31-10% change
S&P 500 Total Return3.5453.680+3.8%
Dow Jones Industrials Total Return33.41734.619+3.6%
AEX GR1.2101.195-1.3%
Portfolio value€ 20.095 € 20.323 +1.1%

All in all, October was a rollercoaster month! In the first two weeks stocks lost a lot of ground and especially my holdings in KO and IBM took a hit. However, most of these losses were gone by the end of the month. My portfolio however did not perform as well as major indices like the Dow and the S&P500.

  • On October 7th I purchased 7 stocks of IBM for $190 per share. Obviously this purchase was ill timed considering the decline in price after their disappointing quarterly results. However I am not too worried about this and still view IBM as a great company with a good outlook.
Dividends received
  • KO: 37 shares @ $0.305 for a total of $11.29
  • BAX: 22 shares @ $0.52 for a total of $11.44
  • PM: 17 shares @ $1.00 for a total of $17.00
Total: around €27 after tax which is 60% more than October last year. This is obviously great and shows the power of regular contributions and commitment to dividend growth investing. However, I don't expect to see these kind of year over year increases regularly.

Dividend increases
The last few weeks different companies in my portfolio raised their dividends. These raises are not huge but I still take them any day of the year! These kind of raises definitely keep me on track to increase dividend payments at 6% per year.
  • PM raised its quarterly dividend payment with $0.06 to $1.00 per share, an increase of 6.4%.
  • OHI raised its quarterly dividend payment for the fourth time this year with $0.01 to $0.52 per share, an increase of 2% (8% this year).
  • KMI raised its quarterly dividend for the third time this year with $0.01 to $0.44 per share, an increase of 2% (7% this year).
  • AFL raised its quarterly dividend payment with $0.02 to $0.39 per share, an increase of 5.4%.
Yearly forward dividend
My 12-month forward dividend rate is now €762, compared to €734 last month. This increase is mostly due to my new position in IBM. Unless the USD.EUR-rate changes a lot in the coming 2 months, I don't expect my annual forward dividend to change.

How was your month? What are your plans for the coming month? Keep plowing your money into the stock market or maintain a cash position to use when the markets start to move downwards (again)?


  1. Congrats on the dividend income, DD. Looks like good progress compared to last year

    Best wishes

    1. Hi R2R, yeah definitely good progress. I can't wait to see what future me in 15 years will say!

  2. Great chart showing your progress. I had a nice month getting my first BNS dividend ever and surpassing my 2013 in dividend income. Excited about that. I'm curious to know how I'll finish 2014 as well. Thanks for sharing your income update with us.

    1. Hi Keith, thanks for stopping by. Good to hear you are doing great as well! Keep it up :)

  3. Solid month DD. 60% YoY growth is fantastic and your chart looks really good especially the Aug/Sept/Oct comparisons to last year. That's some nice growth. I'm looking at buying some shares of IBM soon, maybe today actually if the share price cooperates with where I'd like to purchase shares at. Keep up the good work!

    1. Hi PIP, 60% annual growth is great however I don't expect to continue posting these results. Your timing of buying IBM is much better than mine but I guess I am a happy owner in 10 years nonetheless.

  4. Congrats on a solid month. I like the IBM buy and I am sure you will make out with that investment in the long term. Keep it up and I look forward to seeing what you buy in November.

    1. HI Dividend Mongrel, thanks for your comment. I probably won't buy anything in November (lack of funds:( However,I wish you well with your own investments!

  5. Congrats on a solid month. Things are looking great for you. Your dividend income is showing solid growth. IBM is a great company and you should be able to hold it forever.

    1. Hi Tawcan, thanks for your kind words! I certainly hope to keep up and increase my dividend income even further.