Dividend Income 2022
Key 2022 dates for the portfolios earnings & updates
1, Q1 dividend income figures were published on 31st Mar 2022 (Please Scroll down)
2, Year end 2021/22 portfolio figures were published on 6th April 2022 (Please Scroll down)
3, Q2 (Half Year) dividend income were published on 30th June 2022 (Please Scroll down)
4, Q3 dividend income was published on 1st Oct 2022 (Please Scroll down)
5, Q4 dividend income (full year results) were published by 7th Jan 2023 (Please Scroll down)
First quarter results are looking positive for 2022 vs. 2021. Dividend Income has increased by 18.15%. Please see the chart below.
Investments during 2021 were focused on increasing holdings in mainly two stocks: Unilever PLC and NextEnergy Solar Fund.
The portfolio has been tilting towards energy and more specifically renewables over the past 8 years.
A continued theme of balancing the risk (As both Wind & Solar are new to the dividend arena) between both assets classes have paid dividends in Wind & Solar.
The latter will see increased investment over the coming year, when the price of NextEnergy Solar fund meets the portfolios set purchasing price.
Over time the aim is to match the 6,000 shares held in TRIG so both Wind and Solar have the approximate weightings and shares.
NextEnergy Solar’s final 1,000 shares were only purchased late in 2021. Until now none of the incomes have been realised for the final trench purchased. During the next tax year 2022/23 income should be higher given the current energy environment and increased holdings.
If you would like to see the effect of income vs. holdings and the incremental effects on the portfolio you will find an updated file on the NextEnergy Solar page.
Portfolio performance has improved year over year at an impressive 12.19% in additional dividend income received.
Earnings were £3,180.42 vs. £2,834.61 (2020/21).
There was an annual increase in income of £345.81 (although not all earnings will be realised until 2022 as increased holdings did not take place until late 2021)
Dividend yield of the portfolio is 3.79% (09/04/22) (This figure has been calculated on all dividend producing equities)
Targets were set in order to achieve increased monthly income each year. Last year the portfolio averaged £265.04 per month vs. £250.00 per month target.
Comparing YOY performance the financial tax year end for 2020/21 was £236.21 per month. Therefore the minimum target of £250.00 per month was set for 2021/22.
To ensure there is a continued focus on increasing monthly income, forward monthly targets have been set for 2022/23 at £290.00 (2023/24 – £320.00per month)
All earnings received have either been reinvested or held on account as cash. I am waiting for set purchase prices on specific equities to either increase current holdings or add new businesses to the portfolio.
One portfolio adjustment occurred during quarter 1 – 2022. Vermillion was sold and the cash is held on account for future reinvestment.
The portfolios exposure to energy specifically old oil & gas energy has been rebalanced.
Both BP & Shell will remain in the portfolio for now due to surging energy prices. Near term energy increases in oil & gas should flow through to dividend increases.
Please see the chart below where you can see the main companies and their portfolio weightings.
Looking at the chart below you will see that the percentage of international shares edging up to help balance risk and maintain diversification.
A full financial year 2021/22 breakdown of the dividend payments for analysis can be found in the file below:
Total income received in the first 6 months was £1,763.91 ($2,147.60 for those international followers) which is slightly ahead of expectations due to the weakness of sterling which benefits international payments.
The 2022/23 monthly portfolio targeted earnings has been set at £290.00 per month or approximately £3,500.00 per annum. ($355.00 ppm or $4,260.00 PA)
Average monthly income at the end of June 22 is £293.99 ($357.94) exceeding the £290.00 pcm target which I am delighted about.
YOY dividend income at the 6 month point is 20.25% up verses 2021, please see the chart below:
N.B. May’s usual payment by LG group was paid in June this year which is why they are monthly increases/decreases YOY in those months.
Additional stocks purchased during quarter 2 started with Hargreaves Lansdown (HL). Prices dipped below £10.00 and into the set purchase parameters.
The first position in Hargreaves Lansdown (Ticker: FTSE 100 HL) was taken on 100 shares. At the time of purchase HL had a current dividend yield of 3.74% (09/04/2022).
Due to general volatility in worldwide stock market indexes due to rampant inflation and interest rate increases in both UK & US markets there have been further pressure on share prices.
As Warren Buffett once quoted “Be fearful when others are being greedy and Greedy when others are fearful”.
Once again taking advantage of the general drop in share prices globally, I decided to purchase a further 90 shares of HL.
This current and impending market weakness is a great example of an excellent buying opportunity, were DIY portfolios can to take advantage of weaker markets and reduce cost price averages within our portfolios.
Should there be a shallow recession in markets around the world over the next year to 18 months, then this would present an exciting opportunity to add new positions or increase existing positions in ones portfolio.
An increased position in 3M (MMM) was taken during April as the equity fell below another price threshold, purchasing an additional 30 shares taking the total holding to 100 shares.
The chart below shows the first 6 months of dividend income as at 30/06/22.
For a snapshot of the first 6 months payments, further dividend analysis can be found in the file below:
Total income received in the first 9 months is £2,702.88 ($3,013.71 for those international followers). This is slightly ahead of expectations due to the weakness of sterling which benefits international payments.
Average monthly income at the end of September 2022 equates to £300.32 (or in US dollars $334.86), exceeding the £290.00 pcm target.
2022 verses 2021 dividend income is showing a £452.37 uplift or 20.10% YOY increase. Please see the chart below:
The portfolio is currently sitting on a cash surplus of £2,050.26 to invest however due to sterlings weakness I do not see any value to adding further international stocks to the portfolio at this time.
Albeit, there are a few US stocks that I would like to add that are currently trading at low multiples not seen for a year. Therefore one will be keeping a close eye on MSFT, QCOM, PG, KMB, YUM, PEP, MKC, MDLZ, as possible contenders.
For now the intention is to seek out either UK or European equities that are trading at reasonable multiples. Not forgetting the stocks have had to demonstrate a solid track record of paying a reasonable dividend.
Possible European stocks: DGE, HEIA, NESN, NG, REL, SMDS, SAFE, SKG
All of the European & US tickers mentioned above have set buying prices/limits.
A full breakdown of the individual paying equities can be found in the file below:
Finally, remember what a wise Warren Buffett quoted “Be fearful when others are being greedy and Greedy when others are fearful”.
With market turmoil brings opportunity, so until the end of 2022 happy investing!
As 2022 draws to a close this is the final portfolio update that I trust you will find of interest.
Highlights for the year
1, Total dividends received over the past 7.5 years equals £18,030.52 (or $21,816.93)
2, YOY Dividends have increased by 21.40%. (An additional £653.65 income)
3, Total income for 2022 stands at £3,716.38 (£309.67 pcm) vs. 2021 £3,060.91 (£255.07 pcm)
4, December 22 was the highest amount of monthly dividends received at £828.48 or ($988.25) US dollars
5, Dividend yield of the portfolio is 4.22% (30/12/22)
The yield figure has been calculated on all dividend producing equities as this is the thesis of the investing blog:
“Investing for a passive income”
I am extremely pleased with the results however some of the increase has been due to the weakness of sterling.
Sterlings weakness has slightly inflated figures as there are 5 international (US) stocks within the portfolio paying quarterly dividends.
Cash held on account ready to invest stands at 2.3% or £2,226.89.
As always all dividends have either been reinvested or held on the account ready for a buying opportunity.
There was only one additional purchase during the quarter, increasing NESF holdings adding an additional 1,250 shares that was also in time for Decembers dividend distributions. Total NESF Holdings now stands at 4,500 shares.
For a full break down of all dividends received during 2022 please see the attached file below:
I hope that you have all had a successful 2022 investing, Thank You for following.
Happy New Year & Best Wishes for a successful 2023!
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