A Positive Portfolio, Despite Lower Income
August was a relatively quiet but positive month for most of the markets I track. After July's more mixed performance, four out of five indices finished August higher.
The AEX Total Return Index gained +0.8%, while IWDA rose +0.5%. In the US, the Dow Jones Industrial Total Return Index added +0.1% and the S&P 500 gained +1.1%. The only decliner was the STOXX Europe 50, down -0.1%. The broader US market also finished August in positive territory according to a month-end market review, which reported gains for the S&P 500 and Dow over the month.
Against this modestly positive backdrop, let's see how my dividend portfolio performed.
At the other end, the biggest losers were:
Compared with the indices I track, my +0.6% average portfolio price change was roughly in the middle of the pack. It beat IWDA (+0.5%), Dow (+0.1%) and STOXX Europe 50 (-0.1%), but trailed the AEX (+0.8%) and S&P 500 (+1.1%).
For me, that's perfectly fine. The objective isn't to beat every index every month. The objective is to build a diversified portfolio capable of producing reliable and growing income over many years.
The main explanation is straightforward. USD dividend income declined from $236 to $217 (-8.0%), primarily because I sold my shares in A.O. Smith (AOS) and Kinder Morgan (KMI).
Only ASML offered a nice dividend boost (helped by the purchase of 1 additional share). The rest of the dividend growth was somewhat muted. However I don't judge dividend progress on a single month.
“Compounding works best when you give it the one thing it needs most: time.”
And that's exactly what I intend to keep giving my portfolio.
Against this modestly positive backdrop, let's see how my dividend portfolio performed.
Portfolio performance: 18 winners versus 13 losers
The portfolio delivered an average price increase of +0.6% across 31 positions. The three biggest winners were:- Merck (MRK): +16%
- BHP: +13%
- Deere & Company (DE): +8%
At the other end, the biggest losers were:
- Cummins (CMI): -13%
- Ahold Delhaize (AD): -12%
- Aflac (AFL): -9%
Compared with the indices I track, my +0.6% average portfolio price change was roughly in the middle of the pack. It beat IWDA (+0.5%), Dow (+0.1%) and STOXX Europe 50 (-0.1%), but trailed the AEX (+0.8%) and S&P 500 (+1.1%).
For me, that's perfectly fine. The objective isn't to beat every index every month. The objective is to build a diversified portfolio capable of producing reliable and growing income over many years.
Dividend income: down 4.5%
On the income side, August was less impressive. At constant exchange rates, dividend income declined from €218 in August 2025 to €206 in August 2026, down 5.5%. Currency movements softened the decline slightly. After FX, income was €207, while my after-tax dividend income decreased from €184 to €176, or -4.5%.
The main explanation is straightforward. USD dividend income declined from $236 to $217 (-8.0%), primarily because I sold my shares in A.O. Smith (AOS) and Kinder Morgan (KMI).
Only ASML offered a nice dividend boost (helped by the purchase of 1 additional share). The rest of the dividend growth was somewhat muted. However I don't judge dividend progress on a single month.
Final thoughts
August wasn't spectacular, but it didn't need to be. The portfolio gained, more stocks went up than down, and several companies increased their dividends. Dividend investing is a marathon of small steps rather than monthly victories.“Compounding works best when you give it the one thing it needs most: time.”
And that's exactly what I intend to keep giving my portfolio.
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