Dividend Income Update September 2018 and Total Return Overview

It’s time for the monthly dividend income update. As always, you can find the updated info at any time here 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 included such as Total Return and Income per Company

Living While Saving

Since the last dividend income report, I’ve started with a small business idea. 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

Goal of my DGI portfolio

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

I do not thing that 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.

(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.

Total Return of My Portfolio

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 were the total return in 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. However, they provide some nice income from time to time.

(I’ve hidden most cells due to privacy)

Most investment have returned positive numbers and haven’t been in the portfolio for a longer time than 2 or 3 years. Also, my beta is around 0.4 which means my portfolio is moving slow 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, it should have been way more in this bull market.

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

  • The 1 year return for the consumer 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 fundamental in my portfolio have been bad momentum investment. However, I like to buy boring sexy companies which makes it easier to sleep at night, and I also think that capital will be replaced at one point, and then the picture will be different.

My top 5 positions are

  • Dominion Energy, Realty Income Group, Veidekke, Kopparbergs and Oaktree Capital.

Now over to the dividend income….

Dividend Income September 2018

The total dividend income for September landed on $118 which is an 264% increase from September 2017. The total dividend for 2018 is now 17761 NOK or $2152 which means an 92. 38% increase from 2017.

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

The main objective now is the make sure that I beat the past years 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

  1. 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

    1. 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

    2. 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 😛

  2. 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?

  3. 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.

        1. 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!

          1. 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

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