Dividend income 2021
2021 was the 6th full year of reinvesting the dividends back into the SIPP account.
Once again at the beginning of the year I set myself a target to produce an annual income in excess of £3,000 per annum or in excess of £250 per month, so I am extremely pleased to share these result with you.
Now that the portfolio is over the 6 years mark in reinvesting the dividends, I aim to share a little more insight regarding these earnings by providing a little more data I have created by using Hargreaves Lansdown analysis tools.
I trust that by providing some additional insight and portfolio analysis this will help all the readers and followers of the articles and webpages.
Total annual dividend income received for 2021 was £3,060.91 or an average of £255.08 per month.
This income figure represents an annualised dividend yield of 3.73%, This percentage is based purely on the value of the dividend paying equities of which the original investment value of £81,925.21 stands at 31/12/2021
I hope that you are too starting to see the fruits from your own investment choices in your passive income portfolio.
Any investing insights provided by this data does not fully or in any part constitute suggestion/s for any investments. This data is factual at the time of writing and is purely provided for research purposes and by no way should be deemed as an suggestion in or of any stock/s for your own portfolio selection.
The year over year (YOY) income has increased slightly however not all the revenues have been realised, due to myself holding back on reinvesting and purchasing additional equities towards the end of 2021.
Part of the reasoning for wanting to keep a little more cash in reserves, I was waiting for better buying opportunities as the markets during 2021 where quite frothy or in other words too expensive.
If we consider one element like just PE values, some stocks are punching well above their historical averages.
Therefore 2021 did not offer any great bargains until the very end, so some of these reinvested moneys will not be received until the end of the first 2022 quarter.
I carried over £1,000 of cash into 2022 waiting for a better buying opportunity to emerge.
Calculating the income generated verses the value of stocks invested, then the portfolio achieved a 3.73% annual return.
Additional insight have been provided at the bottom of the page, regarding the make up of the portfolio weightings of some of the equities that have generated this income during 2021.
How can we be sure that the portfolio is achieving a good level of income?
Can or should I be measuring my own performance?
For my own peace of mind and for all the readers and follow investors, I think if we are DIY investing enthusiasts shouldn’t we need some form of comparison or a yard stick to measure our own performance?
I believe we should measure our portfolio and personal performance otherwise we will not know when and if anything is going wrong, so we can then set a correct course of action.
This year I have decided to make a comparison against three popular income funds that are available, just to ensure my portfolio is on the right course and I am not making any further mistakes.
So comparing this level of return 3.73%, thus far I believe I am either on parr with or in some cases slightly above some available income or income & growth funds that are managed by experienced fund managers.
(To remain mutual and respectable to fund managers, I will not name any specifics however I can confirm I measured 3 funds in December 2021).
Now I am not saying we must beat ourselves up if we do not achieve these same levels the professionals do, however if we are close then its a good measure of own abilities and performance.
By comparison it will either reinforces or question our equity selection and portfolios success. We can then alter any investments and weightings to improve portfolio performance.
For a full analysis of the dividend paying equities please see the file below:
Further analysis of the portfolio can be found below in the top 20 holdings and their weighting in relation to the value of the total portfolio.
Please remember that all investments can rise and fall in value, therefore you may get back less than you originally invested.
This website or webpage is not a suggestion to purchase or invest in any stocks / equities and is presented purely for research analysis.
Should you be unsure of any investment whether it be purchasing shares or equities directly, funds or investment trackers, you should seek independent financial advice from a qualified financial advisor.
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