The first dividend income update for 2018 is finally here, and I’m highly satisfied with the development of my “dividend income project.” Let’s summarize the results:

  • Total Dividend Income for January landed on $57.90 or 445.95 NOK
  • Last year’s dividend income for January was $12.86 or 99.04 NOK
  • Quadrupled the dividend income
  • 7 companies sent me checks

The following companies paid me in January

  • CSCO, $6.12
  • KMB, $11.17
  • PEP, $0.85
  • OMC, $11.29
  • O, $9.39
  • VER, $12.64
  • CAH – SOLD

The result is I received $57.90, which is four times larger than the amount in 2017. Being able to quadruple your income isn’t something normal, and the main reason is that I previously owned a few companies that paid their dividend in January. Also, The Monthly Company or Realty Income Group helps a lot.

Pure Dividend Growth

The following diagram illustrates pure dividend growth, meaning the growth I get because management increased their dividend payout.

2017 vs 2018

Accumulated Dividend Income

Recent Purchases/Sales

  • Bought 50 shares of Realty Income Group (O)
  • Bought 200 shares of Veidekke (VEI)
  • Closed my position in Cardinal Health (CAH) after thinking and talking with friends about it since October.

Projected Dividend Income

The projected dividend income is now around $2,400, and with 6% CAGR for the portfolio. I’m going to break $2,500 this year. I might have to increase my goal to $3,000 already. Damn. What happened to the days when I was struggling hitting $1000? Good times.

Nordic Dividend vs US Dividend

I don’t track the dividend growth of my Nordic stocks, because they aren’t as strict when it comes to cutting the dividend. Is it bad? Good? Well, it’s two-sided: You want your dividend income no matter what, right? Maybe especially when the market crashes. Your favourite stocks will become much cheaper. Getting a stream of cash each month will help you on your quest to achieve more shares.

However, a company’s balance becomes weaker when they pay their dividend. When the payout ratio is about 40% and the company has a credit rating of BBB+, one shouldn’t worry. But Nordic stocks can often have payout ratios around 80%-100%. Forcing them to pay a dividend while having negative EPS growth means that they might have to increase their debt in order to pay you (Statoil did this in 2016 when the oil price crashed). That’s not good either, right?

I think about it like this: I’m happy with the high dividend that I get now (5%-7%) from many of my Nordic stocks, but I’m fully aware that they might cut the dividend in bad times. Therefore I’ve created my portfolio so that solid US-based companies are the core of the portfolio, and Nordic stocks are more like jokers. Some will cut their dividend, but I’m sure that they will return with strong force.

Thanks for reading,

Stockles


25 Comments

Team CF · January 31, 2018 at 7:57 am

You are doing very well Mr. Stockles. Great battle plan for 2018, best of luck!

    Stockles · January 31, 2018 at 4:36 pm

    Hi Team CF,

    Thank you! Adding a lot of capital when markets are ATH should feel scary, but I try to think of the long term plan. Then todays contribution is small anyways, so might just add now when I have the capital. Can’t afford to wait until the market chrases. I also want to be invested when the market chrases, because that’s the only way I can test myself and grow as a person and investor. Thanks for commenting!

Tom @ Dividends Diversify · January 31, 2018 at 2:58 pm

Stockles, I appreciate your thoughts on the pros and cons of consistent dividend payers vs the less consistent sort that pay out based on fluctuating earnings and financial performance. I have to admit, I am a sucker for the consistent payers. I crave predictability in my life. Not just with dividends, but with most everything. Some people would call me boring, but I’m okay with that. Tom

    Stockles · January 31, 2018 at 4:33 pm

    Hi Tom,

    I can definitely understand that. Having consistent payers in your portfolio is a time-testet way of achieveing great results. However, while you’re not among them, many “investors” buy a stock and don’t care about what the dividend does to the company. In the states, the dividend is the last thing that get’s cut, but here in europe, it’s the first thing. And each case will be different. For long term holders, we also want the fundamental return to be solid, which means that the company must be able to grow over time. Cutting the dividend might turn out to be a smart move (for some companies), and the total return will be very satisfying.

    However, I also like the predictability and will continue to look and add to companies were the dividend in safe.

    Thanks for commeting!

Matthew · January 31, 2018 at 4:12 pm

Great growth congrats. Keep up the good work.

    Stockles · January 31, 2018 at 4:34 pm

    Hi Matthew,

    Thanks! Will try to!

Dividend Portfolio · January 31, 2018 at 6:03 pm

Congrats on quadrupling your dividend income Stockles. That’s impressive. Plus, looks like you’re going to be reaching your goal with your forward annual dividend income! I say go for the $3000.

    Stockles · February 7, 2018 at 11:12 am

    Hi DP,

    Thanks! Then I’m going for $3000!!

Dividend Driven · January 31, 2018 at 9:05 pm

Congrats Mr. Stockles on your dividend income. I do like those 7 stocks that paid you.

    Stockles · February 7, 2018 at 11:13 am

    Hi Dividend Driven,

    Glad to see you here on Stockles and yes, those securities are amazing. Thanks for commenting!

Mr. Robot · February 1, 2018 at 7:27 am

Amazing growth rate, congratulations! Everybody (including me) seem to be loading up on O stocks 🙂

We share O and CSCO paying us this month.

    Stockles · February 7, 2018 at 11:13 am

    HI Mr. Robot,

    Hehe yes, seems like we are all watching the same stocks and thank you!

Dividend Daze · February 1, 2018 at 3:52 pm

Congrats on quadrupling your dividend income from last year! Your forward dividends are great. I am still at the “struggling to get to $1000” mark, but should hit it this year. That is an awesome way to kick off the year! Keep that growth going!

    Stockles · February 7, 2018 at 11:14 am

    Hi Daze!

    Thanks! Letting my money work for me instead of against me is the key. Can’t wait to see you beat the $1000 line. Let’s do this!

Jordan @ Moneymaaster.com · February 1, 2018 at 3:56 pm

Congrats on a solid month.
It seems like the entire Blogging community is loading up on “O” and “JnJ” over the last couple weeks.

All the best in 2018

    Stockles · February 7, 2018 at 11:15 am

    Hi Jordan!

    Haven’t seen you here before. Welcome 🙂

    Yes, sure. It seems so. Suppose it has something to do with our preferances.

    Best of luck in 2018!

Rob @ Passivecanadianincome · February 1, 2018 at 4:12 pm

Nice stockles. Great year over year growth and nice companies paying ya.

Keep it up. If you think you will hit your goal might as well bump it up. Dont want it to be too easy right?

Cheers

    Stockles · February 7, 2018 at 11:17 am

    Hi Rob!

    So true! Will have to set the goal for $3000. Hope you stayed focus this last days and maybe purchased some shares? Thanks for commenting!

The Beta Post · February 1, 2018 at 8:47 pm

Nice work, and impressive YoY Growth!

Regarding Statoil I think it was wisely of them to announce the SCRIP-program back in 2016 to limit the cash flow from dividend payments during tougher times. There is actually a master thesis from your school about that subject: https://brage.bibsys.no/xmlui/handle/11250/2407432 (only available in Norwegian).

Dividend Diplomats · February 2, 2018 at 3:02 am

Stockles –

Heck yah! STrting the year off with a 4x dividends vs. prior year is awesome. Can you repeat come February?!

-Lanny

    Stockles · February 7, 2018 at 11:19 am

    Hi Lanny!

    Thanks for stopping by! Yes, 4xdividends awesome, but guess what, in february it should be 5xdividends :O

Money Hungry · February 8, 2018 at 5:01 am

Congrats on a great month Stockles! We only share O, but I sure hope to get my hands on PEP, KMB, and CSCO one day. Hang on tight this February looks like it will be one hell of a ride!

Stock Analysis: I Bought More Veidekke. Here’s Why - Stockles Blog · March 11, 2019 at 12:19 pm

[…] you saw in my latest report, I bought another 200 shares of the Nordic company Veidekke. If you don’t know about the company, […]

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