- 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.
(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
- Dominion Energy,
- Realty Income Group
- 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.