Monthly report: January 2026

The new year started on a positive note for global markets. January delivered solid gains across most major indices, setting a constructive tone for 2026. European markets led the way, with the AEX rising +3.5% and the Euro Stoxx 50 gaining +1.7%. Global equities also moved higher, as IWDA advanced +0.8% over the month.

In the United States, performance was steady rather than spectacular. The Dow Jones Total Return increased +1.1%, while the S&P 500 finished January up +1.2%. Overall, it was a healthy start to the year, driven by optimism around earnings, easing inflation concerns, and a general “risk-on” sentiment in equity markets.

Portfolio Movers – Top Gainers and Losers

Against this favorable backdrop, my portfolio saw some strong individual stock movements. The three biggest gainers in January were:

• ASML (+23%) – A very strong start to the year for ASML, benefiting from renewed confidence in the semiconductor cycle and AI-related demand.
• TXN (+22%) – Texas Instruments rebounded sharply, likely reflecting improving sentiment around industrial semiconductors.
• MPWR (+20%) – Monolithic Power Systems delivered an impressive rally, recovering from earlier weakness as growth expectations improved.

On the downside, the three weakest performers were:

• V (–7%) – Visa pulled back modestly after a strong prior period, likely due to short-term profit-taking rather than any fundamental deterioration.
• AD (–5%) – Ahold Delhaize declined slightly during the month, a relatively normal move for a defensive consumer-staples stock after a period of stability.
• CNI (–4%) – Canadian National Railway saw a mild correction, typical for a defensive, dividend-focused name after a strong run.

These moves highlight how sector momentum—especially in semiconductors—played a major role this month.

January showed a clear skew toward winners in my portfolio. A large majority of holdings posted positive monthly returns, with several double-digit gainers. Compared to the general markets, which delivered solid but relatively modest gains, the portfolio exhibited higher volatility but also stronger upside in certain positions.

For a dividend investor, this is a reminder that price fluctuations are secondary. While it’s nice to see capital appreciation, the portfolio’s main job is to keep producing reliable income—regardless of short-term market swings.

Dividend Income – Year-over-Year Comparison

Dividend income in January looks dramatically lower compared to last year at first glance. Total income dropped from €8,168 after tax in January 2025 to €170 in January 2026, a decline of –97.9%. However, this comparison is heavily distorted by a the annual dividend from Brink received in January last year, which did not repeat in 2026. I expect to receive dividends this year, but it will be somewhat further down the road due to our companies restructuring last year. 

Looking at the recurring income instead, the picture is much healthier. The USD dividend subtotal increased by 6.4% year over year, reflecting steady dividend growth from core holdings like MRK, PM, WMT, and ADP. This underlying growth is what really matters for long-term dividend investors.

Final Thought

To close, a simple reminder that fits moments like these perfectly:

“Dividends turn volatility into patience, and patience into progress.”

January was a strong start to the year—both for markets and for the long-term dividend journey ahead.

Recent Buy: Automatic Data Processing (ADP)

I recently added to my position in Automatic Data Processing (ADP) with the purchase of 7 shares at around $260 per share. ADP is a company I’m happy to continue building over time given its exceptional dividend track record and highly durable business model.

This was not a new position for me. I first initiated my ADP holding in June 2024, when I purchased 8 shares. That initial buy was about getting exposure to one of the highest-quality dividend growth companies in the market, and this recent purchase builds on that foundation.

My total ADP position now stands at 15 shares.

Business Performance Since My First Purchase

Since my initial buy in mid-2024, ADP has continued to execute well operationally and strategically.

The company has benefited from:

• Ongoing demand for payroll and human capital management (HCM) services, supported by high client retention and recurring revenue.

• Growth in employer services and PEO offerings, which continue to expand margins over time.

• Product and platform enhancements, including increased use of data analytics, automation, and AI-driven tools to improve client efficiency and stickiness.

• Strategic acquisitions, such as the WorkForce Software deal, which strengthened ADP’s workforce management capabilities and supported long-term growth expectations.

ADP’s business model remains highly resilient, with strong free cash flow generation across economic cycles — a key reason it remains a core dividend holding for me.

Dividend Growth Update

Dividend growth is the main reason I own ADP.

Since my first purchase in 2024, ADP has continued its long-standing tradition of annual dividend increases. The quarterly dividend has risen from $1.54 per share at the time of my initial purchase to $1.70 per share, bringing the annual dividend to $6.80 per share.

That represents an increase of 10%, since I first bought the stock.

ADP has now raised its dividend for more than 50 consecutive years, firmly placing it among the elite dividend growth companies. This consistency is exactly what I look for when building long-term income streams.

Valuation Thoughts

At around $260 per share, ADP is not a bargain-basement stock, but quality rarely is. At this price, the stock offers:

• A dividend yield in the mid-2% range

• Reliable mid-single-digit to high-single-digit dividend growth

• Exceptional business stability and predictability

For a Dividend King with ADP’s track record, this valuation feels reasonable for long-term investors focused on income growth rather than short-term price movements.

Impact on My Dividend Income

This purchase increases my forward annual dividend income from ADP by approximately $47.60 (7 shares × $6.80).

With 15 shares total, ADP now contributes over $100 per year in dividend income to my portfolio — income that I fully expect to continue growing year after year.

Final Thoughts

Adding to ADP was an easy decision. The company continues to deliver steady earnings growth, consistent dividend increases, and strong cash flow generation. While the stock may not always look cheap, its reliability and income growth make it a cornerstone holding for a dividend-focused portfolio.

I’m happy to keep accumulating shares over time and letting compounding do the heavy lifting.

Monthly Report: December 2025

December ended the year on a positive note for global markets. After the mixed performance earlier in the autumn, equities broadly moved higher across regions. European markets performed well, with the AEX Gross Return Index rising +0.4% and the Euro Stoxx 50 gaining a solid +2.3%. Global equities followed suit, as IWDA increased +0.7% over the month.

The strength was even more pronounced in the United States. The Dow Jones Total Return climbed +2.4%, while the S&P 500 advanced +1.2%. Overall, December was a constructive month, supported by year-end optimism, easing financial conditions, and expectations for a more stable macro environment going into 2026.

Portfolio Movers – Top Gainers and Losers

My portfolio reflected the positive market backdrop, although individual stock movements varied widely. The three strongest performers in December were:

• BMY (+10%) – Bristol Myers Squibb rebounded strongly, likely helped by renewed confidence in its pipeline and valuation support.
• BHP (+10%) – The mining giant benefited from higher commodity prices and improving sentiment toward cyclicals.
• V (+6%) – Visa delivered a solid month, continuing to show resilience as a high-quality compounder in the financial sector.

On the downside, the three biggest decliners were:

• MPW (–11%) – The weakest performer this month, reflecting ongoing concerns around leverage and the healthcare REIT space.
• HASI (–8%) – Renewable infrastructure stocks remained under pressure, despite their long-term income appeal.
• MDT (–7%) – Medtronic pulled back after previous strength, possibly due to profit-taking toward year-end.

These moves underline how even in rising markets, individual stocks can behave very differently depending on sector dynamics and company-specific news.

Despite a few notable laggards, the overall ratio of winners versus losers was reasonably balanced, with a slight tilt toward positive performers. Many holdings posted modest gains of 1–3%, which may not grab headlines but are perfectly acceptable for a dividend-focused portfolio.

Compared to the broader indices—which all finished firmly positive—my portfolio showed more dispersion but remained well aligned with the market’s direction. This reinforces an important point: dividend investing is not about winning every month, but about steady participation in market growth while collecting income along the way.

Dividend Income – Year-over-Year Growth

December also delivered encouraging news on the income front. Total dividends grew from €446 in December 2024 to €455 in December 2025, representing a +2.1% year-over-year increase after tax. On a constant FX basis, income rose even more strongly, highlighting healthy underlying dividend growth across the portfolio.

An earlier purchase of BIPC shares is the reason for the big increase in dividend income. 

Another reason for the dividend income growth is a new position in Next Era Energy (NEE). Earlier in April and September I purchased shares in this company.

Dividend income from Visa increased compared to last year primarily because I recently bought more shares as discussed in my recent buy post from December. 

Currency effects continue to influence reported results, but the long-term trend remains intact: dividends are growing, and that growth compounds over time.

Final Thought

To close the year, a simple reminder that fits dividend investing perfectly:

“Price is what you pay, income is what you keep.”

December was a fitting end to the year—solid markets, growing dividends, and another step forward on the long journey toward financial independence.