Monthly report: September 2024

As September has passed, it’s time to reflect on how the markets performed, review the biggest movers in my portfolio, and assess the progress of my dividend income. Let’s break down the numbers and explore what they mean for the future.

Market Overview: Global Performance in September 2024

The global markets in September 2024 presented a mixed bag of performance, with different indices reflecting varying trends:

• AEXGR: The Dutch AEX Gross Return Index (AEXGR) saw a slight dip of -1.1%, falling from €3,597 to €3,556. The performance reflects a general weakness in European markets, driven partly by economic concerns such as inflation and energy prices.
• IWDA: The iShares World Index (IWDA), which offers exposure to global equities, showed modest growth of +0.7%, holding steady at €96. This indicates relatively stable performance in developed markets.
• DJITR: The Dow Jones Industrial Total Return Index (DJITR) surged +3.5%, increasing from $101,984 to $105,536. This gain was driven by strong earnings reports from key U.S. companies and a generally optimistic economic outlook.
• S&P 500: Meanwhile, the S&P 500 saw a notable increase of +4.2%, rising from $5,529 to $5,762. The U.S. stock market, fueled by tech and healthcare sectors, was one of the best-performing regions in September.
• Overall, U.S. markets outperformed their European counterparts during the month, showcasing the strength of the American economy, while European markets struggled under inflationary pressures.

Top 3 Gainers and Losers in My Portfolio

• MPW (Medical Properties Trust): +28%
  MPW was the top performer in my portfolio. They have bene beaten the last year but last month MPW announced that it reached a global settlement agreement with Steward and its secured lenders that restores MPW’s control over its real estate, severs its relationship with Steward and facilitates the immediate transition of operations to quality replacement operators at 15 hospitals around the country. This is good news since its the start of a new phase for the company.
  
  
• BHP (BHP Group): +19%
  The mining giant BHP benefited from rising commodity prices, particularly in iron ore and copper, both critical for global infrastructure and green energy projects.
  
  
• BEPC (Brookfield Renewable Partners): +18%
  BEPC's impressive gain highlights the increasing investor focus on renewable energy assets. With governments pushing for greener economies, renewable stocks like BEPC continue to attract attention.

Top Losers:

• Shell: -8%
  Shell faced a tough September, losing ground due to weakening oil prices and pressure from governments and investors to accelerate its transition to cleaner energy sources.

The prices of other companies only fell by 3% or less which is more or less noise. 

September 2024 Dividend Income: A Year-Over-Year Comparison

Looking at my dividend income for September 2024 compared to the same month in 2023, there has been a noticeable improvement, reflecting the growth of my portfolio and dividend reinvestments over time.

My Euro-denominated dividends increased modestly from €197 in September 2023 to €201 in September 2024, a growth of 2.1%. This is largely due to slight increases from companies like AD (+2%) and UNA (+4.8%), as well as Shell, which, despite price depreciation, delivered steady dividends.

My U.S. dollar-denominated dividends showed a much more robust increase, rising from $375 in September 2023 to $475 in September 2024, marking a 26.5% growth. Significant contributors include AFL (+19%), CMI (+56.3%), and BIPC and BEPC, which contributed nothing last year but provided more than $77 this year due to new purchases (BEPC: here and here, BIPC: here). JNJ (purchase in January 2024) and O (Realty Income) (last purchase in October 2023) in also delivered solid double-digit dividend increases.

Total Dividend Growth: On a constant foreign exchange basis, my total dividend income in September 2024 grew by 17.7% compared to September 2023. After factoring in exchange rate effects, my total after-tax dividend income stood at €539, up from €473 last year, representing a 14.0% year-over-year growth.

This continued growth is encouraging, especially as a long-term investor who relies on consistent and compounding dividend payments.

Conclusion: Long-Term Investing Pays Off

The mixed performance of global markets and individual stock fluctuations highlight the importance of focusing on the long term. Despite short-term volatility, my dividend income continues to grow steadily year after year, reaffirming my belief in a disciplined, dividend-focused investment strategy. As the legendary investor Peter Lynch once said:

"In the long run, it's not just how much money you make that will determine your future prosperity. It's how much of it you put to work by saving and investing."

I remain committed to reinvesting my dividends and focusing on quality, dividend-paying stocks to ensure that my portfolio continues to generate increasing income over time. The combination of stable dividend growth and strategic asset allocation continues to pay dividends — literally and figuratively!