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Thursday, January 10, 2019

Dividend growth 2017 and 2018

Today I am going to look back a bit on the growth of the dividends of the companies I own. Normally I do this more frequently but in the past two years I haven't updated my blog. So here goes!


In 2016 I received about €785 in dividends. This is net (after dividend tax) and calculated using the USD.EUR rate at the time of the dividend payment. In reality however I don't convert and just use the USD to reinvest in a new purchase. This is a rather big decline compared to 2015. There are several reasons:
  • Various serious dividend cuts
    • Kinder Morgan (KMI)
    • Billiton (BBL)
    • Textainer (TGH)
  • Spin-off Baxalta from Baxter and subsequent dividend reduction.
In 2017 things got better. I received a net amount of €856 which is an increase of 9%. I haven't deposited any new funds so I guess in a normal year I can expect this kind of dividend growth. The current yield of my portfolio is around 4% so the average weighted dividend growth of my existing holdings is around 5%.

In 2018 the growth in dividend income was slightly higher (+10%). I received some big increases (>15%) in 2018. Billiton, Kinder Morgan, Aflac, Union Pacific and T Rowe Price come to mind. However my biggest holdings in terms of income (Royal Dutch Shell and Omega Healthcare) decided to keep the dividend at its place. This kind of muted the overall dividend growth. I don't expect these kind of raises at my current job, so I'm quite satisfied with a 10% increase.

I expect a higher dividend growth in 2019, because I started to deposit new funds on a monthly basis. Depending on the amount of available funds I hope to achieve a growth of 15-16%. More on that later though!

How was your 2018 dividend wise? Are you satisfied with your dividend growth?

2 comments:

  1. 2016 will be a small hiccup in the dividend growth over the long-term. Just focus on solid companies and try to add whatever you are able to. Over time, these dividends will compound and it will be a substantial amount of money. I'm going to try and track my organic growth a little better this year myself. Anything over the rate of inflation is a win and better than a savings account. Good luck in your goals!

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    1. Hi, AAI, thanks for taking the time to comment! I agree, 2016 is just a really small blip in the longer road ahead. Good luck in 2019!

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