Monthly report: July 2026

Portfolio Strength Despite Weaker Markets

July was a mixed month for global stock markets. After several relatively strong months, most of the indices I track moved lower.

The AEX Total Return Index was the exception, gaining +1.9%. Elsewhere, the STOXX Europe 50 fell -0.5%, IWDA declined -1.2%, the Dow Jones Industrial Total Return Index lost -1.3%, and the S&P 500 dropped -2.2%. This fits the broader picture of a mixed July. A July 31 market review reported rotation away from mega-cap technology toward value and other parts of the market, alongside rising Treasury yields. For a dividend investor, such rotation is a useful reminder of the benefits of diversification.

Against that backdrop, my portfolio had an excellent month. Across 31 positions, the average price change was +2.8%, considerably better than most of the general market indices I track.

My three biggest gainers were:

• Microsoft (MSFT): +21%
• Shell: +18%
• Bristol Myers Squibb (BMY): +16%

Microsoft’s recovery is particularly striking after being my biggest loser in June at -19%. Markets can change direction quickly, which is another good argument for not making investment decisions based on one month of price performance. See my June 2026 monthly report for comparison.

On the other side, the three biggest decliners were:

• ASML: -13%
• Brookfield Renewable (BEPC): -9%
• Texas Instruments (TXN): -8%

Interestingly, ASML was June's biggest winner at +24%. One month later it sits at the bottom of the list. Yet another reminder that monthly price changes are mostly noise when your investment horizon is measured in years.

22 winners versus only 9 losers

The breadth of the portfolio was perhaps the most encouraging part of July:

With more than twice as many winners as losers, my portfolio performed considerably better than the overall direction of the markets. While IWDA and the S&P 500 declined, the average position in my portfolio gained 2.8%. This month therefore demonstrates the value of having exposure to different sectors rather than relying on one particular market or theme.

Dividend income: temporarily moving backwards

Dividend income was less positive. At constant exchange rates, July income decreased from €196 in 2025 to €181 in 2026, a decline of -7.5%. After FX, income came in at €187, and after tax I received €159 versus €168 last year, down -5.1%.

The main explanation can be found in the USD holdings. Total USD dividends decreased 7.5%, from $231 to $214, primarily because I sold my shares in MPT and MDT, versus $16.00 and $21.30 respectively last year. However, there was plenty of underlying dividend growth:

• ADP: +107.0%
• MPWR: +28.2%
• PM: +8.9%
• MRK: +4.9%
• KO: +3.9%

So, although July's headline income declined, several individual dividend streams continue moving in exactly the direction I want: upwards. That follows an extraordinary June, when dividend income reached a record level, largely due to the Brink dividend. You can read more in my June dividend report.

Final thoughts

July illustrates dividend investing perfectly. Markets declined, my portfolio gained, but dividend income fell. Next month the picture could be completely different. That is why I prefer to judge progress over years rather than months.

“Time in the market beats timing the market.”

For me, the objective remains unchanged: keep buying quality businesses, let dividends grow, reinvest the cash and give compounding enough time to do the heavy lifting.