Global Market Performance in July
Looking at the broader indices, July offered a mixed picture:
- AEXGR (Netherlands): +0.1% – essentially flat, showing that Dutch equities treaded water.
- SX5E (Euro Stoxx 50): +2.1% – European blue chips gained modestly, helped by strong earnings from industrials and financials.
- IWDA (World ETF): +4.7% – global diversification paid off, with international equities showing strong momentum.
- DJITR (Dow Jones Industrial Total Return): +0.0% – a quiet month for the Dow, with cyclical stocks lagging behind.
- S&P 500: +2.7% – U.S. equities remained resilient, fueled by strong tech earnings and continued optimism around AI-related investments.
In short: the U.S. and global equities performed well, Europe kept a steady pace, and the Dutch market was flat. Against this backdrop, let’s see how my own portfolio developed.
Portfolio Movers: Top 3 Gainers and Losers
My portfolio didn’t move in unison with the broad market. There were clear winners and losers:
Top 3 Gainers
- CMI (Cummins) +12%. Cummins surged after reporting strong quarterly results and optimism around its hydrogen and clean energy initiatives. Investors seem to appreciate that the company is positioning itself for a low-carbon future, while still generating steady profits from its core engine business.
- BEPC (Brookfield Renewable) +12%. Renewable energy got a strong push this month. With governments and corporates doubling down on their green commitments, BEPC benefited from higher investor appetite for long-term sustainable energy plays. BEPC was also a top performer last month!
- WMT (Walmart) +9%. Walmart gained as it showed strong resilience in the consumer sector. The company reported better-than-expected earnings, highlighting how its scale and efficiency give it a competitive edge even as consumers remain price-sensitive.
Top 3 Losers
- TXN (Texas Instruments) -14%. Texas Instruments struggled as demand in the semiconductor sector cooled, particularly in industrial and automotive markets. The company is still a dividend stalwart, but growth expectations have been tempered for the short term.
- CNI (Canadian National Railway) -11%. Railways are often seen as steady performers, but CNI dropped amid concerns about slowing North American freight volumes and potential labor cost increases. Long-term fundamentals remain intact, but the market is cautious.
- BMY (Bristol-Myers Squibb) -11%. Bristol-Myers faced headwinds after weak pipeline updates and concerns over patent cliffs on some of its blockbuster drugs. The stock’s defensive nature wasn’t enough to offset investor worries. BMY was also a dog performer last month.
Looking at the full list, my portfolio had slightly more losers than winners.
About 16 stocks increased in price, led by Cummins and Brookfield Renewable.
Around 21 stocks declined, with TXN, CNI, and BMY dragging performance.
On average, the gainers rose by about +4,8%, while the losers fell by -5,2%. This tilt toward the negative side explains why my portfolio slightly underperformed the global indices despite some strong individual showings.
Dividend Income
And now the most important part: dividends. After all, short-term price fluctuations are just noise compared to the long-term compounding effect of growing passive income.
That’s a 2.3% drop in constant FX terms compared to last year and a much steeper -9.3% decline after currency effects and tax.
The main culprit was Medical Properties Trust (MPW), which slashed its payout from $30.00 to just $16.00, a painful -47% cut. On the positive side, Coca-Cola (+5.2%), Merck (+5.2%) and Philip Morris (+3.8%) delivered solid dividend growth. I also received a new dividend due to my purchase of two shares in MPWR earlier this year. It's a rather small position with a low dividend yield but it still counts!
This month serves as a reminder that dividend investing isn’t a straight line upward. Cuts happen, especially in riskier high-yield positions like MPW. The key is diversification and focusing on quality companies that can sustain and grow their payouts.
Final Thoughts
July wasn’t my strongest month for dividend income, but the beauty of dividend growth investing lies in the long-term trend, not in one-off months. Despite the temporary setback, I’m confident that my portfolio will continue to deliver growing passive income in the years to come.
As Warren Buffett once said:
“Do not save what is left after spending, but spend what is left after saving.”
Dividends are a perfect example of this philosophy: let your portfolio do the saving and investing for you, and you’ll reap the benefits over time.
