Dividend Income Report 2018

Another year has passed us by, so quickly I barely noticed. We all made new memories and have experiences changes in one or another way. Indeed, 2018 has been an exciting year, with many ups and downs. When looking at the equity markets, the downs literally have taken over control in the past two months. With S&P 500 dropped by almost 10%, December 2018 was one of the worst Decembers in the history. No wonder we were fluted with doomsday news that spread fear among people.

However fear is a bad advisor and the number one reason why many individuals end up losing money in the stock market. Keep in mind: human emotion is the single-best enemy of an investor. We dislike losses so much (much more than we like gains) that we barely can’t sit still while markets are going down. As a consequence many investors sell their holdings and participate in the losing game of timing the market.

A jug fills drop by drop
Buddha

But there is good news for those who search to fight loss aversion and finally build long-term wealth over time. Keep on investing consistently. Step by step. Think of your portfolio as it is a business. You don’t want to find a perfect moment to liquidate your business. Rather you want to invest in it and maximize its long-term cash flows and value. Just like Johnson & Johnson (JNJ) or Pepsi (PEP) don’t try to time the global economy by shutting down their operations during times of economic turbulence, the same should be valid to your holdings.

That is why I focus on growing the income stream of my portfolio by consistently collecting great businesses. I’m filling this jug drop by drop. No matter how bad the downturn might appear, these companies will most certainly deliver reliable dividend payments. That being said, here is my dividend income report for 2018.

Monthly dividend review: December 2018

In December I have received dividend payments from twelve companies and one ETF:

  • Enbridge (ENB): €12.97
  • Visa (V): €1.63
  • Unilever (UL): €11.22
  • LBrands (LB): €11.75
  • IBM (IBM): €8.17
  • Johnson & Johnson (JNJ): €14.67
  • Home Depot (HD): €5.37
  • Coca-Cola (KO): €6.93
  • ETF Europe 600: €4.17
  • Royal Dutch Shell (RDS): €11.99
  • BlackRock (BLK): €8.16
  • Broadcom (AVGO): €13.73
  • Union Pacific Corp (UNP): €6.22

December’s dividend income came in at €116.98 ($133.36) in total. That is a 32% increase compared to December 2017 (€88.58). I welcome three new contributors. V, HD and BLK have sent a dividend check for the first time. All in all December ended up to be my fourth strongest month when it comes to payout. Now let’s have a look on the full year performance.

Yearly dividend review: 2018

After having logged in Decembers dividend income, the final picture for the whole year 2018 looks as follows:

Month2018
2017
+/-
Total€ 1,163.80€ 699.93+66%
January€ 25.26€ 9.78+158%
February€ 55.35€ 17.92+209%
March€ 107.33€ 100.05+7%
April€ 84.92€ 66.47+28%
May€ 177.26€ 108.73+63%
June€ 103.13€ 70.66+46%
July€ 50.96€ 24.99+104%
August€ 190.84€ 43.00+344%
September€ 125.87€ 95.43+32%
October€ 54.34€ 23.83+128%
November€ 71.56€ 50.49+42%
December€ 116.98€ 88.58+32%

In total the SF portfolio has generated €1,163.80 ($1,373) in annual dividend income in 2018. A 66% increase compared to the final result in 2017 of €699.93 ($798). The major part of this gain is due to new capital deployed. I don’t expect this growth to continue when I am out of the accumulation phase. In fact, I count with a more realistic organic dividend growth rate of 6 – 7% (which is comparable to the growth in March).

August 2018 experienced the largest raise. On a monthly basis the dividend payment increased by 344% VS. previous year. The reason is simply a shift from reinvesting to distributing policy by my major ETF provider. This one-time effect won’t matter in 2019 since I have liquidated my index funds and totally focus on individual stocks now (read more about it here: Tweaking the SF portfolio). Below I have added two charts that show the month-to-month as well as the accumulated performance comparison.

In the end of the year, the green line is well above the brown one. I’m more than happy about the final result. It keeps me focused and motivated for 2019. Indeed, watching the passive income grow is a huge encouragement to stay on the DGI path. It is a perfect proof how well this strategy works. Each acquisition, each dividend hike is a drop that fills the jug. I can’t wait to keep filling it and enjoy the ride along the way.

Long-term dividend review

Another metaphor that I like, is viewing the journey towards FI as climbing stairs. With every year passing, we climb one step up. Sure, It’s a long-term process. But thanks to the power of compounding, the later steps bring us much faster to the end goal. This is how my personal climbing-stairs-process looks like:

Since inception, I have climbed four steps and crossed a four-digit annual income in 2018. There are 17 stairs left, assuming my assumptions do not change over time. Well, many factors might shift as years are passing by. This changes could favour or handicap the journey. I’m fully aware of this. However keeping record of the progress allow us to have the goal in front of our eyes and make some adjustments if needed.

Sure, I could achieve my goal faster. However I want to enjoy life today while building an income stream for tomorrow. This is not a contradiction to me. By enjoying life, I don’t mean buying and collecting fancy products. Not that I don’t value good things. I can very much enjoy driving a nice car or wearing a fine suit. But I’ve learnt that it doesn’t bring me long-lasting pleasure. The thrill always fades after a while. Thus I rather try to focus on gathering great experiences and moments. Hopefully 2019 will be rich in opportunities to make some great memories! Best of success to you all. Have a great start into the new year!

 

21 Comments

  1. My Dividend Dynasty January 2, 2019 at 11:53 pm

    Congrats on a great month and great year! I like how you use graphs and charts to show your progress. It creates a nice visual of the growing snowball. Keep up the great work! 🙂

    Reply
    1. Snugfortune January 3, 2019 at 11:14 am

      They say a picture is worth a thousand words. I’m glad to hear you like the charts and graphs.
      Thanks for the visit, MDD.
      Cheers

      Reply
  2. Wice January 3, 2019 at 11:19 am

    Great visualisations for tracking your progress. Keep climbing those steps towards FI! I’ve been trying to do projections myself and yep, there’s just too many variables to account for but it’s a great tool for plotting a course at least having an idea on where things are heading.

    Reply
    1. Snugfortune January 3, 2019 at 9:16 pm

      Hi Wice,
      exactly. That’s also how I look at projections. I’m happy you found some value in it.
      Thanks for stopping by.
      Cheers

      Reply
  3. Tawcan January 3, 2019 at 11:49 pm

    I absolutely love looking at your charts, especially the 2018 vs 2017 one, it’s so inspiring. 🙂

    Congrats on having a great year on dividend income front. 66% growth is very impressive.

    We had a great year too, received over $18,000 in dividend income for 2018 and broke multiple monthly dividend income milestones.

    Reply
    1. Snugfortune January 4, 2019 at 9:37 am

      Thanks for the kind words, Tawcan.
      It looks like you had a fantastic year. 18K in annual dividend income is massive. Congrats on that accomplishment!
      All the best for your journey and hope to see you around here again.
      Cheers
      Alex

      Reply
  4. divvydad January 4, 2019 at 5:26 pm

    Congrats on a very nice month of dividends and the great progress that you made throughout 2018!

    I think you’ve got the right perspective on enjoying life today while also building / planning for tomorrow. Unfortunately tomorrow is never guaranteed so we have to find that balance. I’ve struggled with that at times but am getting much better about it.

    Count me in the group that loves the charts–I’m still trying to figure out how to build that step ladder chart, haha!

    Reply
    1. Snugfortune January 4, 2019 at 11:56 pm

      I’m already considering starting a youtube channel for that:)
      It’s actually quite simple. Create three columns in google sheets (year, projected dividends, received dividends) and select the stepped area chart in the chart editor. This is it.
      Appreciate the comment, divvy dad.
      Cheers

      Reply
  5. Dividend Daze January 7, 2019 at 5:53 pm

    Congrats on the great year. Our portfolios are similar in size and dividends but you were able to achieve it in half the time of me haha. Lots of quality companies paying you this month. Keep it up!

    Reply
    1. Snugfortune January 7, 2019 at 10:10 pm

      But you were smarter since you have started investing earlier than me 🙂
      Thanks for your comment, Dividend Daze!
      Cheers

      Reply
  6. divvydad January 8, 2019 at 9:41 pm

    Awesome, thanks! I’ve now got a step chart included in my spreadsheet. I think I need to refine my projections for future dividends but now it is just a matter of plugging in my numbers.

    Reply
    1. Snugfortune January 8, 2019 at 10:47 pm

      You’re welcome!
      Look forward to seeing how it looks.

      Reply
  7. Mr. Robot January 10, 2019 at 2:24 pm

    I’m really digging your visuals! Crisp, lovely colors and aweseom results to boot. Nice SF!

    We are 2 companies this month, but this will probably increase in the future 🙂

    Reply
    1. Snugfortune January 10, 2019 at 5:50 pm

      Thanks, Mr. Robot!
      I strive towards creating beautiful and useful visuals that help to track the progress.
      So I’m glad you liked it.
      There is a good chance that the number of our shared companies will increase in the future:)
      Cheers

      Reply
  8. Team CF January 15, 2019 at 10:35 am

    Nice visuals and great start to the FIRE journey. Good luck!

    Reply
  9. BrokeInvestor January 15, 2019 at 1:35 pm

    Hey SnugFortune!
    Sorry to visit your December summary only now, I have been lagging on following my blogroll lately. I decided to still leave a comment, as your month summary looks terrific and I especially like all the graphs that you created. Of course, the main thing is that your dividend income increased tremendously throughout 2018.
    It may sound as a silly question, but how do you make that table to show your monthly dividends (the first table)? I am simply making screenshots of Excel tables for now but noticed that quite a few bloggers are using a table like you 🙂
    Keep it up in 2019!
    BI

    Reply
    1. Snugfortune January 16, 2019 at 5:29 pm

      Hi BI,
      thanks for the kind words:)
      To your question (it’s a reasonable one): I use the “TablePress” plugin to create such kind of tables. Try it out. It’s quite comfortable and easy to use.
      Just let me know, in case you need further information regarding it.

      Reply
  10. Dividend Diplomats January 20, 2019 at 7:09 pm

    Excellent month and I loved how the charts helped show your progress. Man, dividend investing is just the best, isn’t it! Keep it up and Keep at it SF!

    Bert

    Reply
    1. Snugfortune January 20, 2019 at 8:37 pm

      Thanks, Bert!
      Man, DGI is really an amazing investment approach. They should start teaching it in schools as a subject:) Students could learn at a young age what investing is about: long-term and consistency.

      Reply

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