It’s time for the monthly dividend income update. As always, you can check the updated info any time on the Dividend Income Spreadsheet and the Portfolio Spreadsheet.

Summary:

  • Dividend Income for September 2018: $118 or 977 NOK
  • Year to Year growth for September: 264%
  • Total YTY growth: 92.39%
  • New spreadsheets includes Total Return and Income per Company

Living While Saving

I’ve started with a small business idea since the last dividend income report. I am looking to use Alibaba to import the products to Norway, but I think I will leave it at that for now. Will tell you more once the size of the project increases.

Let’s move on to stocks and talk a bit about my investment strategy

My DGI Portfolio Goal

The goal of my DGI portfolio is to provide alternative income which doesn’t come from me spending countless hours in the office. However, I want to emphasize something:

I do not think the DGI strategy is the best strategy to maximize the amount of money in your account. 

In the long-term perspective–20 years and more–I truly believe that indexing is the best way if you want to achieve the highest total return. That’s why I also combine my DGI strategy with indexing, to get the benefit of both.

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(My boring index portfolio consist of a high weighting in the Emerging Market, Global Index, a Global Multifactor Index Fund, and a few free Nordic-free Index Funds)

While it’s not the best strategy, it’s certainly not the worst. You can do far worse than going the DGI way.

My goal is to get a solid extra income which makes it possible for me to enjoy and actually use a portion of my money without feeling bad. Especially since I have a girlfriend in Tokyo and have to fly there a few times each year. That’s not frugal at all, but who cares. The dividend income makes it possible for me to fly to Tokyo as much as 5 times if I wanted.

But sure, I want the income to grow, so a reasonable amount of usage is preferable.

My Portfolio: Total Return

While I don’t really aim to get the highest amount of total return on the DGI portfolio, I want to see increased total return year by year. There’s no point investing in a stock where the total return is zero or negative. The closest thing which I can accept is AT&T, but I see AT&T as a proxy bond, and bonds will never beat stocks in the long run. They do, however, provide some nice income from time to time.

(I’ve hidden most cells due to privacy)

Most investments have returned positive numbers and haven’t been in the portfolio for longer than 2 or 3 years. Also, my beta is around 0.4 which means my portfolio is moving slowly in either direction.

Like today, all indexes are down 1% while I’m only down 0.27%. However, one could easily make the argument that the total return, even though it’s positive, should have been way more in this bull market.

Well, not really. It depends what you invest in.

  • The 1 year return for the Xonsumer Staples sector, REIT sector, and Utility sector is 2.6% (-15% relative to SPY), 1.7% (-15.9% relative to SPY) and 2.7% (-15% relative to SPY).
  • The 5 year return for the Consumer Staples sector, REIT sector, and Utility sector is 52.1% (-33.9% relative to SPY), 47.9% (-38.2% relative to SPY) and 62.9% (-23.1% relative to SPY).

Cleary, all of those sectors, which make the fundamentals in my portfolio have been bad momentum investment. However, I like to buy boring, unsexy companies which makes it easier to sleep at night. I also think that capital will be replaced at one point, and then the picture will be different.

My Top 5 Positions Are:

  1. Dominion Energy,
  2. Realty Income Group
  3. Veidekke
  4. Kopparbergs
  5. Oaktree Capital.

Now over to the dividend income.

September 2018 Dividend Income

The total dividend income for September landed on $118 which is a 264% increase from September 2017. The total dividend for 2018 is now 17,761 NOK or $2,152 which means a 92. 38% increase from 2017.

For the income per month, day and hour, as well as the SleepMoneyTotal, go here Dividend Income Spreadsheet

The main objective now is the make sure that I beat the past year’s income. For September, that’s also the case.

Well, 3 USD or 24 NOK for sleeping. At least my coffee is “free”

That’s it. Remember to subscribe to my page to stay updated. I will become more active once this boring bull market takes a break.

Take care,

Stockles


14 Comments

DivvyDad · October 5, 2018 at 2:30 am

That’s some amazing YoY growth Stockles, and a solid month all around. You’re getting so close to that annual goal too! As you’ve mentioned, I have been investing in index funds for many years and now adding DGI to supplement that. With the divvy from my index funds, I was up over $1,000 this month.

All the best with the new business as well!
DivvyDad recently posted…Dividend Income Report :: September 2018My Profile

    Stockles · October 6, 2018 at 11:26 am

    Thanks buddy! Would love to read a blog post were you show the pros and cons from what you have learned about being a index investor for more than 10 years. I’m sure many would find it interesting,

    Stockles

    The Beta Post · October 13, 2018 at 6:14 pm

    Great to see that you’re both into index funds as well as DGI. I’m also combining these two strategies.

    Stockles: congrats on another great month! And don’t spend all you money on intercontinental flights 😛

erik · October 6, 2018 at 8:39 am

Hi stockles. Great motivation to read your blog! I am thinking the same about including index funds as well, it gives me a little hedge if things will go bad in some of my dividends stocks, and therefore am I “sleeping better”. I was trying to find on your blog wich companys you are reciving dividends from each month , but i wasnt able to find it, is this something you could post when you are doing your monthly summary?

erik · October 7, 2018 at 8:47 am

Sorry for my bad English, stockles 🙂 What I ment was, wich companys did you recive divedends from in september. Could you include this in your monthly updates? so when you are writing your october update, can you write each company you recived dividends from in october month. And so on.

    Stockles · October 7, 2018 at 9:33 am

    I see. I used to do that before but didn’t know that it was something people wanted. Will try it out next month!

      ogellers · October 9, 2018 at 9:05 pm

      I agree with Erik. Would be nice if u added that to your post 🙂

        Stockles · October 9, 2018 at 9:15 pm

        Sure! May I ask, what pleasure do you find it reading those numbers? I haven’t included them because I couldn’t see why people would find them interesting!

          ogellers · October 10, 2018 at 6:49 pm

          Many of the blogs i read include how much they got from different companies and i find it interesting. Don`t know why, but i guess it gives the post more context perhaps? I really never thought about it regarding your blog before Erik mentioned it

          Stockles · October 10, 2018 at 7:09 pm

          Hmm. Okey. Sure!

Mr. Robot · October 7, 2018 at 3:22 pm

That is some awesome growth and solid $$$. Still love your sleep money counter 😉

My report is also up, still in the beginning stages but already made my 2018 dividend goal.

Keep it up my friend!
Mr. Robot recently posted…September 2018 dividend reportMy Profile

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