Monthly report: Dividend 2024

December has come to a close, and as I reflect on the past month, I’m struck by how the global markets performed and how these shifts impacted my dividend portfolio. Let’s dive into the highlights for December 2024.

Global Market Overview for December 2024

December saw mixed movements across global indices, reflecting a somewhat turbulent month in financial markets. Here’s how the major indices performed:

• AEXGR: Dropped slightly by -1.8%, closing at €3,419.
• SX5E: Managed a modest gain of +0.5%, ending the month at €4,869.
• IWDA: Declined by -1.7%, finishing at €104.
• DJITR: Experienced the largest drop of -4.9%, closing at $106,587.
• S&P 500: Fell by -2.3%, settling at $5,907.

The global markets reflected caution among investors, with most indices posting declines. This downturn highlights the volatility in markets as the year wrapped up.

Portfolio Highlights: Top Gainers and Losers

While the broader markets faced challenges, individual stocks in my portfolio had varying performances. Here are the top three gainers and losers for December:

Top 3 Gainers
I only have 2 stocks in my portfolio with an increasing stock price during the last month. That kinda tells what a month it has been.

• ASML: Rose by +2%, continuing to showcase resilience as a leader in the semiconductor space.
• BLK (BlackRock): Held steady with 0% change, a testament to its stability despite market fluctuations.

Top 3 Losers
I have 31 losing stocks with an average loss of about 6%. It hasn't been a good month in terms of price appreciation. The biggest losers are:

• HASI: Dropped by -14%, reflecting challenges in the clean energy sector (mainly uncertainties regarding policies from Trump?)
• APD (Air Products and Chemicals): Fell by -14%, likely impacted by macroeconomic pressures.
• BEPC (Brookfield Renewable): Declined by -13%, facing headwinds in the renewable energy space (mainly uncertainties regarding policies from Trump?).

While the losses were notable, it’s essential to remember that these fluctuations are part of the journey as a dividend growth investor. Over time, the compounding effect of dividends smooths out these bumps.

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

Now, let’s talk about the core of my strategy—dividend income. December is traditionally a strong month for dividends, and this year did not disappoint. Here's a comparison of December 2023 and December 2024:

In december 2024 my dividend income jumped to €441, a +25% year-over-year increase! This significant growth was fueled by a combination of factors:

• Dividend increases from core holdings such as AFL (+19%),  V (+13%), CMI (+8%) and KO (+5%).
• Increased position in JNJ with a purchase back in January last year,
• New positions in BEPC, BIPC and CNI.
• I also sold my positions in IBM and INTC.  

The compounding nature of dividend reinvestments continues to be a driving force behind this growth, and December’s performance is a clear testament to the power of this strategy.

Cumulatieve dividend income

Last year I received almost € 11.200 in dividend income. This is almost € 2.400 more than last year, a whopping 27% extra! We'll have to see what next year brings. I don't expect this type of growth to continue. For next year I expect an increase of about 10% in my dividend income.

Final Thoughts

As I close the chapter on 2024, I’m reminded of a timeless quote from Sir John Templeton:

“If you want to have a better performance than the crowd, you must do things differently from the crowd.”

Dividend investing might not always grab headlines, but its steady, compounding nature provides a reliable path to financial freedom. By focusing on quality companies and embracing a long-term mindset, I’m building a portfolio that not only weathers market storms but thrives over time.

Here’s to a prosperous 2025, filled with more dividends, growth, and opportunities!