Dividend Income 2025
Quarterly dividend update schedule for 2025
Annual target £4,800.00 or equivalent to £400.00 per month.
(Equivalent to $5,937.74 PA or $494.81 subject to exchange rates)
- Q1 income results will be published by Sunday 6th April 2025
- Full 2024/25 Tax year dividend income will be published by Sunday 13th April 2025
- Q2 and half year income will be published by Sunday 6th July 2025
- Q3 income will be published by Sunday 5th October 2025
- Q4 Full year dividend income will be published by Sunday 4th January 2026
2025 Starting note:
Starting 2025, we’ve got a few things to keep in mind.
Firstly, there are dividend cuts planned from 2024 to consider, as well as one of the holdings is being taken private early in the year.
But here’s the thing: the portfolio will make a profit from the sale of Hargreaves Lansdown. In fact, we have seen a 29.30% increase in share price appreciation over the last two years (not including any dividend income). While we will miss out on future income we received from holding Hargreaves Lansdown, after the sale, we’ll have the money to reinvest. Finding suitable investments that are similar in value and yield will be tough, and if I want to add any new equities without lowering our annual growth income target, that’s going to be even harder. The main goal of this portfolio is to increase year-over-year dividend income, so we’ll have to make sure we achieve that by the end of the year without fail.
Vodafone and PZ Cussons were the only companies that cut their dividends in 2024. Vodafone has been a terrible investment since I bought it in 2018, even though the price has gone down, I don’t see any good reason to buy more or keep buying even at a lower price. There are still a lot of problems and challenges as they restructure the business, especially in key European markets.
If PZ Cussons decides to sell their African business, it could be a golden opportunity to buy more shares. The Nigerian market has been a major reason for the company’s stock price to drop. They’ve been struggling because of the weak currency and bad international exchange rates.
Published below are the final portfolio dividend income figures for the TAX year 2024/25.
Starting note by way of observations made from the portfolio’s performance over the course of the past year:
Each year it seems to be getting harder to increase the year over year income numbers (The hard cash) however after some reflection and analysing a few things, there are two factors affecting the lower annual comparatives.
1, two dividend cuts were announced from both VOD and PZC that came into effect over the last year.
2, reinvesting the previous dividends and savings into lower yielding technology stocks does as it appears effect the annual monitory gains.
Therefore considering the above two points it is no wonder that this past year seemed even more challenging to demonstrate year over year increases. Sometimes I do have to remind myself that I am now investing in tech stocks and their yields are much lower that typical dividend stocks like energy or FMCG consumable staples.
Total income generated from 5th April 2024 to 4th April 2025 was £4,436.23 compared to full year 2023/24 £4,253.03. Generating a small Tax year increase of just £183.20 or 4.31%.
In a way I am happy with an increase especially in the current economic environment we live in today. The backdrop being a war in Europe, rampant inflation (still), higher interest rates and now to make things even worse a global trade war and Donald Trumps Tariffs. So being an individual investor managing a portfolio with little skills I am pleased with this modest performance.
On a positive note and thanks to the developing Microsoft spreadsheets, forward income is now shaping up to be on target due to some recent buys of non tech stocks to help lift the portfolios annual increase, before buying the next trench of technology stocks in the coming quarters.
The total amount invested in dividend stocks is valued at £105,788.76 with a forward yield at 4.40%. Assuming no further investments were to made this year, then the projected monthly income currently stands at £388.30 (Target for 2025 is £400 per month). Thankfully we still have three quarters left of 2025 to combine both a small amount of regular savings and any future dividend income to still invest in more stocks.
The chart below shows the year over year income compared to previous tax years with an averaging income of just £369.69 per month.
Further analysis can be seen below is a monthly portfolio chart covering the entire year from the HL investment platform.
Looking at the above chart I am still exploring ways to smooth out the main quarterly income months. From April 2025 two new positions have been included that hopefully will start to have a minor effect for future earnings in the months of April and August. Theres also a plan to include stocks that distribute dividends in January, May, Jul, Oct and Nov.
As always and for your own research purposes, I have shared the full dividend breakdown of each individual business in the pdf file below:
(Please note: if you are unable to see the pdf file, then it may depend on the web browser you are using and if it is up to date).
I found the market pull back in 2020 beneficial so keen now to exploit the Trade Tariff turmoil to the fullest extent.
Until mid years’ update, Happy Investing and pick up as many bargains as you can afford 😀.
January 2025 kicked off with a small 2.94% increase compared to January 2024. However, February 25 will see a significant (-21.53%) drop due to Vodafone’s dividend cut. But here’s the thing, if there aren’t any more dividend cuts, even if we ignore HL’s income, the forward income for March looks promising with a modest 0.96% growth. Fingers crossed that by the end of Q1, we’ll receive the HL sale proceeds so I can make some smart moves in new stocks and start planning to grow the rest of 2025’s dividend income.
As we can see from the chart below total income for the first quarter was £1,062.24. March 2025 £909.43 figure (In the above chart) is less the Hargreaves’s Lansdown (HL) income £39.60 received in 2024, due to the sale of the business.
Compared to Q1 2024, dividend income is 0.0714% down year over year by approximately £7.64. If the sale of HL was not taking place even with VOD & PZC reduced dividend income the portfolio would have still been slightly ahead.
To date (06.04.2025) I am still awaiting the funds from the HL sale to reinvest for future dividends.
New stock purchases in the first quarter totalled £3,844.71 as I purchased four separate buys of shares in:
Safestore (Safe), The Renewables Investment Trust (TRIG), Alphabet (GOOGL) and Diageo (DGE).
None of these new equity purchases contributed to income within the quarter, so all things being equal I am keen to see the forward income drip in over the coming months.
Below is a year over year chart comparing the monthly income over the last four years. As we can see February was disappointing due to the two dividend cuts from PZC & VOD.
Below are two charts, the first showing the top twenty holdings and the second demonstrating the UK to overseas diversification split.
The chart below demonstrates the percentage of international shares verses UK and investment trusts.
For research purposes, the file below contains a full breakdown of all the income generated per stock in quarter one 2025.
To conclude quarter one 2025 and to briefly summarise:
What an eventful start to 2025! Trumps tariffs have had a major impact on global stock markets giving a perfect opportunity for stock pickers to take advantage of any market pull backs.
I would not say this is going to be easy ride but with some share prices being overinflated during the last five years, it is allowing the perfect opportunity for long term investors who are not scared of seeing market declines. Well that’s how I personally see this situation.
There will be short term declines but for those with long term horizons then like we experienced during the pandemic, once this all the dust settles, then there could be some substantial long term gains on the cards for those brave enough to ride the journey.
I just wish I had more readily available funds right now for investing 🙂 especially in the technology sector.
Anyway for now:
Sit back, relax and don’t panic. Enjoy the bumpy ride over the next 6-12 months because there will be bargains galore.
Thanks Donald!
Happy Investing!
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