Mid-year review 2018


– Deposited €11.900 in my broker account compared to €9.000 target

– Repayed €5.400 extra mortage above regular monthly repayments vs. a target of €5.000

– Received €1.154 dividend vs. a mid year target of €1.100

– Overall I’m on track reaching my targets set for this year


I’m well above my target set for deposits to my broker account. This is mainly due to extra income as a result of extra salary as a result salary increases as set in the collective labour agreement (CAO) as negotiated by the unions. I never take these salary increase into consideration while determining my deposit account, because it’s my experience it can sometimes take months or even well over a year before the employers and labour unions reach an agreement.

Also some small tax changes resulted in a small increase of my income after tax and as a result a bit more spare money to deposit in my broker account, because I’m still happy with the savings balance I have and still do deposit all my spare money into my broker account.

Extra mortgage repayment
The target of repaying €5.000 extra above my regular monthly installments was this year more challening. Normally I have this amount almost available by the payment of holiday money from the company I work for in May and the tax return I receive from the Dutch government.

In The Netherlands it’s a common practice to receive 8% of your yearly salary in May as holiday money above the regular paycheck. This not changed in this year. Normally I receive a tax return in May, because interest on mortage is tax deductable in The Netherlands. It’s possible to receive every month 1/12th of this tax return, but I always prefer to receive the return fully in May.

This year my tax return is only halve of the return of previous year. This is because my assets did grow a lot last few years and in The Netherlands there is a tax on assets. As a result of the grow in value of my share portfolio and value of my house the tax on assets did eat a big part of my mortgage interest tax return.

I did still repay €5.000 in May as extra mortgage repayment by adding €1.500 of free income I would normally have added as extra deposit in my share portfolio, because I consider it important to repay my mortage much faster than the standard of 30 years we have in The Netherlands.

The extra mortgage repayment has besides a lower debt also as a result that my monthly payment to the bank is reduced with €30 a month.

Dividend income
Dividend income is on track with 52,5% of my full year target reached. I’m only slightly above 50% while i did receive yearly dividend from companies like Aena, ASML, WDP and Fortum. Based on current dividend levels my full year dividend income is €2.229. This full year dividend income is also taken into account the shares I for example bought this month and for which I won’t receive dividend in the first months of this year.

To reach my full year target I’m still dependable on extra shares I buy in the 2nd halve of this year else the set target of €2.200 to receive this year will be challenging to reach.

I did set a challenging target, but because of a dividend cut of Macquarie Infrastructure Company and euro-dollar exchange rate of over 1,21 compared to around 1,21 in the first halve of 2017 did result in on average 11% lower dividend income. On the otherhand I did mainly buy American shares in the first part of 2018 so I get 11% more shares just because of the dollar-euro exchange rate…

Fact Five

1) Largest Position: AbbVie €2.920

2) Largest yearly dividend income: Enbridge €132

3) Estimated dividend on a yearly basis €2.229

4) Largest sector: REIT 22,1% of portfolio

5) Largest currency: USD 59,8%

Wishlist for 2nd part of year

1) Increasing share of eurozone investments

2) Doubling position in Unilever to increase exposure in Consumer Staples sector.

3) Increasing ING and Aegon positions, because these stocks are now very small positions in my portfolio while I bought them to add a decent cashflow in my portfolio. Due to share price increases and new deposits ING (5,33%) and Aegon (5,35%) are now a bit too small positions.

4) Spending time on researching the German stock market. One of the biggest market in Europe, but I have no exposure in German stocks. I plan to reserve time to do research on the German market.

5) Analyzing some Euro dividend ETF’s to get some inspiration finding eurozone dividend stocks.

Final Thoughts
Reaching my dividend income target for this year will be a challenge. Also because some shares very high on my watchlist are euro shares 1 yearly dividend payment paid in the first part of the year. Buying these shares will not result in extra dividend income this year, but I not going to skip these shares if still high on my watchlist just because it will not help me reaching my short term dividend income taret, the long term is more important.

6 thoughts on “Mid-year review 2018”

  1. Good luck on reaching your goals IWD. Curious you decided to pay extra on your mortgage. I’ve been struggling with that decision for quite some time – specifically whether I should pay extra on my 30-year mortgage or not.

    Although meeting your goals for the year will be a challenge, it sounds like you’ve made decent progress and are more than 50% there – so good job. Looking forward to following your progress along the way.

    1. I’m being conservative in repaying extra on my mortage. I know in theory an investment in stocks will result in more capital than repaying my mortgage with 2% interest.

      It’s about balance for me. Just as I spread my investments over various sectors and companies I also want to spread the income I generate from my job. I don’t want to put 100% in shares with the potential to make big results.

      Also I consider it a very rewarding and relaxing idea to have no mortgage anymore somewhere in the next 10 years. Repaying my mortage will result in my biggest fixed cost being gone and that I consider a very pleasant idea.

  2. Those are some hefty figures and solid track record for the first 6 months. I’m excited to see what you can accomplish in the second half!

    1. Thanks! I’m also curious to the next part of the year. For me it feels like stock prices are high so I’m curious if the 2nd part of the year will bring a correction or that prices will continue to increase.

  3. Greetings Erik!
    Could you share your eurozone stocks that you own? As for beginning I am building my portfolio only on Europe stocks. For this moment I am staying away from US stock market as my income is in euro. Also I wish to reduce additional currency risk.
    Besides wish you all the best with upcoming second half of the year!

    1. These are the euro stocks I currently own:

      ASML Holding
      Amsterdam Commodities
      Flow Traders
      Kas Bank
      Royal Dutch Shell
      Think AEX UCITS ETF

      My eurozone stocks are mainly Dutch companies, but many of these Dutch stocks are big companies and deriving most of their income form outside The Netherlands so I don’t see it as being overweighted to The Netherlands. I’m from the Netherlands so it’s easy to find information and analysis on Dutch sites about these companies. I plan to compare some eurozone + UK dividend ETF’s to find more dividend companies in Europe.

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