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.
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