I realized that I don’t have an idea how much my dividend income this year increased due to dividend changes from companies in which I own shares.
I always adjust the dividend in my google docs file after I learn about a dividend increase or decrease, but I don’t have a total overview.
I did make the comparison based on the following rules to keep things simple:
– Only stocks are included which where in my portfolio at the end of 2017 which I now still own.
– Stocks I bought in 2018 and had a dividend increase since opening the position this year are excluded.
– I calculate the extra dividend income based on the number of shares I owned at the end of 2017.
– I use the dividend date I have in my google docs file, no double checks
– I use the following exchange rates to translate to EUR:
EUR/USD 1,15
EUR/GBP 0,90
EUR/CAD 0,66
Dividend increases:
1) Abbvie – +50,0% – €16,70 dividend per year extra
2) Aena – +69,7% – €16,02 dividend per year extra
3) Novo Nordisk – +34,4% – €8,53 dividend per year extra
4) DSM – +39,3% – €8,45 dividend per year extra
5) Think AEX EFT – +15,9% – €6,50 dividend per year extra
6) Simon Property Group – +8,1% – €4,17 dividend per year extra
7) Apple – +15,8% – €3,48 dividend per year extra
8) Bank of America – +25,0% – €3,44 dividend per year extra
9) Coresite Realty – +14,4% – €3,17 dividend per year extra
10) Unilever – +22,9% – €2,89 dividend per year extra
11) Royal Dutch Shell – +2,7% – €2,84 dividend per year extra
12) Aegon – +7,7% – €2,40 dividend per year extra
13) Royal Bank of Canada – +7,7% – €1,85 dividend per year extra
14) Omega Healthcare – +1,5% – €1,84 dividend per year extra
15) WDP – +5,9% – €1,50 dividend per year extra
16) National Grid – +3,0% – €1,49 dividend per year extra
17) l’Oreal – +14,5% – €1,35 dividend per year extra
18) ASML – +16,7% – €1,20 dividend per year extra
19) Coca Cola – +5,4% – €1,04 dividend per year extra
20) Johnson&Johnson – +7,1% – €0,83 dividend per year extra
21) Macquarie Infrastructure Company – 29,6% – -€10,23 dividend per year less
22) Wereldhave – -18,2% – €11,20 dividend per year extra less
Macquarie Infrastructure Company (MIC) and Wereldhave were the only 2 companies in my portfolio reducing their dividend. In both cases I decided increasing the number of stocks I own after a stock price correction as a result of the communication of the dividend cut.
MIC reduced dividend to internally fund the repurposing of a Tank Terminal after a client cancelled a contract. I considerred the selloff to big and decided and increased the number of shares MIC in 2018 from 7 to 42. Currently the yield is 8,7%.
Wereldhave is did decide to cut the quarterly dividend from €0,77 to €0,63. I decided to increase the number of stocks I own from 20 to 55. I bought Wereldhave shares, because I considerred this stock undervalued. Wereldhave has issues with a shopping mall owned in Finland which results in negative valuation adjustments. After the stock correction due to the communication of the dividend cut I decided that I feel that the underlying assumptions I had when starting my position are not changed and bought more shares. Yield is now 7,9%.
In total the dividend changes above are good for €68,36. When setting my target for this year of €2200 income I calculated with €76,80 in extra dividend due to dividend increases. This is 6% of the estimated yearly dividend income at the end of 2017. I’m around this number if I also take into account that some stocks I bought in the first part of 2018 also increased their dividend.
Starting 2019 I will track dividend changes in detail so I have more information available about the development of my dividend income, but for now I’m happy with 22 companies increasing their dividend. I have 6 stocks which normally tend to announce a dividend increase in the last quarter of the year so I’m looking forward to more dividend increases this year.
Those are some awesome increases and this really shows the power of DGI. Thanks for sharing!
First I was disappointed by the relatively small amounts per company, but after realizing that this is very close to the 6% dividend growth I used while calculating the 2018 dividend income target, I realised that this is indeed the power of DGI, like you also said.