Dividend income 2026

Starting note for 2026:

One of our ambitions for 2026 would be to continue growing the dividend income based on an average of 7.5% per annum. This would create year-end figures in the range of £5,160.00 or £430 per month. However, the focus this year is to increase diversification, specifically in either technology stocks or data analytical businesses, that tend to have lower yields. Revenues from digital sales, like analytical data sets or software, are growing, especially with the new AI growth theme. Therefore, we are reducing the target as we aim for a modest 6.32% year-over-year growth.

We have already kicked off 2026 with a small purchase in Equifax (EFX), a data, analytics, and technology company that provides a range of services to businesses in varying sectors. At the time of writing this article, EFX has a current yield of under 1% (0.92% 16/01/2026). Even though dividends are never guaranteed and this business has been distributing dividends for over 100 years, but it’s hard to see how such a low-yielding stock will make a meaningful impact during 2026, albeit over time the dividend growth should be meaningful. The stock has already appreciated in value by 2.21%, even up to 5% from its lows in early January when we purchased the stock.

Other businesses within our 2026 digital theme are companies like Relx (REL) or Sage Group (SGE). This digital theme coupled with increasing current holdings within the portfolio, is where we aim to divert funds during the year.

We will return early April 2026 with our first quarterly update. Until then, thanks for reading and happy investing! 😀