working towards €1.000 a month in dividend income
Yesterday it was the M of Microsoft and today’s it’s the M of McDonalds if it’s about dividend increases. McDonalds announced a 15% dividend increase. The quarterly dividend is increased from $1.01 to $1.16.
I own 11 shares McDonalds so this dividend increase results in $6,60 in extra dividend income per year. My yield on cost is now 2,98%.
This week Microsoft (MSFT) announced this week that the quarterly dividend is increased with 9,5% from $0,42 to $0,46 per share. Unfortunately Microsoft is only on my watchlist and not (yet) in my portfolio. Microsoft Corporation is a strong company with strong brands like Windows and Microsoft Office (Excel, Word, Powerpoint, etc) and also together with Amazon AWS, Microsoft is a leading player in cloud services.
Like I said Microsoft is just on my watchlist and I don’t own shares of them at the moment. This is mainly due to my preference to buy shares on a dip, when shares are closer to their 52 weeks low than to their 52 weeks high. Microsoft price is up almost 50% this year, performing much better than the market average.
Due to the price increase the yield is only 1,6% after this dividend increase.
Microsoft will stay high on my watchlist so I hope to add some shares when there is a market correction and else someday I will buy it probably against a current price level to add this Tech giant to my portfolio.
While reading the half-year report of Warehouses De Pauw (ESA:WDP) I noticed that WDP also did announce a target dividend increase. WDP has the intention to increase the dividend with 6,6% from €4,50 to €4,80. This increase is not yet final, but based on the development of their EPRA Earnings per share.
I own 11 shares of Warehouses De Pauw so this planned dividend increase will result in €3,30 extra dividend income. Yield on cost will become 5,1% for me after this dividend increase. Current yield based on today’s stock price is 3,9%.
WDP is a REIT investing in semi-industrial and logistical real estate mainly located in Belgium, The Netherlands, the north of France and Romania. WDP is listed on the Euronext stock exchange in Brussels and Amsterdam. I have this stock in my portfolio, because I believe in the steady cashflow these kind of buildings are generating and I also believe they will stay in strong demand due to eCommerce growth.
Today Royal Bank of Canada (RY) announced to increase their quarterly dividend from C$0,94 to C$0,98. This is a dividend increase of 4,3%. This is the 2nd time this year that Royal Bank of Canada increased their dividend. Earlier this year Royal Bank of Canada (RY) already increased it’s dividend from C$0,91 to C$0,94.
The total dividend increase this year comes at 7,7%.
This dividend increase of 4 cents results for me in €2,22 extra dividend income per year, because I own 21 shares at the moment.
The yield on cost for me after the dividend increase is 3,85% up from 3,69%
This week Flow Traders (EPA:FLOW) did go ex-dividend. The interim dividend is up from €0,30 to €1,35 this year. This is increasing my estimated yearly dividend income with €52,50.
Flow Traders (EPA:FLOW) is a market maker mainly active in ETF’s. As a result of the high volatility in the market in Q1 the net profit increased a lot and due to the increased profit the dividend was increased. The Q1 net profit was up 705%. The volatility decreased a lot in Q2 and this results in less trading income. The half year net profit is up 386% from previous year.
I don’t consider Flow Traders a dividend growth stock, because it’s results are very dependent on the volatility in the market.
Yield on cost is 5,24%, but with current volatility I don’t expect this to increase. A decrease in dividend for next year is more likely. I bought this stock initially with the assumption to benefit from high volatility in Q2 also, but with the current relatively calm markets I have to reconsider if it’s worth holding Flow Traders (EPA:FLOW), but at the same time it’s hard to decide if it’s a easy sell, because I of course can’t predict when volatility is comming back.
Last week I received an interim dividend of Dutch specialty chemicals company DSM (EPA:DSM). The interim dividend is up 32,7% from €0,58 to €0,77. Also DSM communicated to the plan to payout €2,30 over 2018 including the interim dividend. This is up 24,3% compared to the 2017 dividend.
I own 13 shares of DSM (EPA:DSM). So the interim dividend increase results in €2,47 in extra dividends. Increase of the final dividend will result in €3,38 extra dividend.
Expected Yield on cost will increase from 2,84% to 3,53%.
Today Simon Property Group (SPG)announced an increase of their quarterly dividend from €1,95 to €2,00. This is an dividend increase of 2,6% versus the previous dividend and an 11,1% year-over-year dividend increase.
I have 16 Simon Property Group (SPG) shares so this dividend increase will result in an increase of my yearly estimated dividend income of $3,20.
After this dividend increase the yield on cost for me is 4,87%.
Bank of America announced a 25% dividend increase. The quarterly dividend is increased from $0,12 to $0,15. This means the yearly dividend per share is up from $0,48 to $0,60.
I own 43 shares of Bank of America. So this dividend increase will increase my yearly expected dividend income with $5,16. Yield on cost will increase from 1,84% to 2,30%.
Last year Bank of America already increased their dividend with 60% so the yield on cost is improving a lot for Bank of America.
During the 2017/2018 full year results publication National Grid announced a 4,6% increase of their final dividend over the bookyear 2017/2018. The final dividend will increaes from 29,1 pence to 30,44 pence.
I own 100 shares National Grid so this final dividend increase will result in 134 pence extra dividend. In euro’s this is €1,53.
DSM announced at the annual shareholders meeting a 5,7% dividend increase from €1,75 to €1,85 over 2017. €0,58 already has been paid as interim dividend.
I own 13 shares DSM so this dividend increase means my yearly estimated dividend income will increase with €1,30. As a result of this increase my yield on cost is 3,17%.