Dividend income 2026

Quarterly Dividend Update schedule for 2026

Annual Target £5,100.00 or equivalent to £425 per month

(For US viewers this equates to $6,901.44 Dollars 18.01.2026)

1, (Q1) Quarter One income results will be updated by 11/04/2026

2, Tax Year end 2025/26 results will be updated by 11/04/2026

3, (Q2) Quarter two half year results will be published by 11/07/2026

4, (Q3) Quarter three results will be published by 11/10/2026

5, (Q4) Full Year dividend income and analysis by 10/01/2027

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! 😀

The Power of Compounding & Dividend Smoothing

With two-thirds of 2026 behind us, autumn has arrived—and with it, a clear look at how our strategic portfolio adjustments are delivering results.

Our primary operational focus throughout 2026 has been dividend smoothing: targeting capital allocations toward off-peak distribution months (January, February, April, July, August, October, and November). The third-quarter numbers demonstrate that this rebalancing is working precisely as planned, with July and August posting year-over-year dividend income jumps of 40.97% and 19.07% respectively.

Despite absorbing two dividend cuts earlier in the year, disciplined reinvestment ensured September delivered net positive year-over-year income growth.

Q3 2026 Performance Highlights

Modelling 2027: The Compounding Pipeline

Because the majority of our new capital deployments took place in the second half of the year, the full income potential of these purchases has yet to show up in our realised 2026 cash flow.

Forward-looking cash flow modelling for 2027 paints an encouraging picture:

2026 Target: Even closing out 2026 at approximately 7% organic dividend growth represents solid execution given the challenging broader macroeconomic landscape.
2027 Run-Rate: Without deploying a single additional penny of fresh capital, baseline monthly dividend income is modelled to jump 7.43% to £445.00 per month (assuming distributions remain intact across current holdings).

The Compounding Flywheel: Capital vs. Organic Growth

The ultimate lesson of a long-term Self-Invested Personal Pension (SIPP) is watching organic compounding overtake personal contributions. Over the past 12 months, the portfolio asset base expanded by 7.75%, or £8,424.85.

Nearly three-quarters (71.5%) of this year’s portfolio expansion occurred completely independently of outside capital. When high-yielding assets, basic-rate tax relief, and dividend reinvestment align, the mathematical acceleration of passive income takes care of the rest.

Portfolio Diversification & Geographic Split

Geographic diversification is critical to insulating a dividend stream against single-currency exposure and localised sector downturns:

International Equity Allocation: Increased to 39.5%, up from 34.7% in 2025.
UK vs. Global Balance: Maintaining high-yield UK blue chips while methodically raising international weightings.
Next Strategic Target (2027): Deepening exposure to quality European dividend payers to balance North American and UK concentrations, potentially via a dedicated, low-cost European dividend ETF.

Below we have a chart showing share allocation for diversification purposes:

As always, we have provided below a list of our top twenty holdings along with portfolio weightings.

For educational and analysis purposes, we’ve included every dividend payment received in the first nine months of 2026, in the file below:

Creating a passive income through compound investing is open to all, provided we stick to solid investing principles and focus on quality, income-producing dividend stocks. The results prove that the earlier you start, the better—giving both time and compound interest the runway to work their magic.

Until our next year-end update, remember to tune out the market’s white noise and keep your focus firmly on quality fundamentals and durable income. Do that, and the long-term results will take care of themselves.

Happy investing, and keep calm and carry on! ☺️

Six months into 2026, I’m delighted to share the portfolio update for the first half of the year.

The total dividend income for the first half of 2026 is £2,501.82, equating to £416.97 per month.

This translates to a financial gain of £139.93, representing a 5.32% year-on-year increase.

In separate comparable analysis, our 2026 metrics are as follows:

The dividend yield is 4.21% including the forward projection to the end of the year.

Forward income to the year-end is projected to increase slightly year-on-year to £4,840.12 (excluding any further investments).

The total capital invested has increased to £115,061.59, compared to £106,945.81 for 2025.

In just over ten years, the portfolio has generated over £33,952.74 in lifetime dividend income.

Purchases during the first half include Diageo (DGE), Equifax (EFX), Primary Healthcare Properties (PHP), and Kimberly-Clark (KMB).

We are expecting one more dividend cut that will affect forward income from NextEnergy Solar Fund. Diageo has also cut its payout this year; therefore, we are hoping future payments are now at a more sustainable level.

Please find below the full monthly chart demonstrating the income for each of the first six months of 2026.

Comparing the monthly figures above, we can witness the effects of our efforts in focusing on lower income months like January, April, and May. Over time, our ambition is to level out the lumpy income throughout the year.

June 2026 was a fantastic month. We achieved our first record income exceeding £1,132.95.

The chart below shows a steady increase in diversification particularly in international shares. This has risen from 31.4% in 2025 to 40.1% annually.

This more detailed analysis chart now includes Property and Real Estate Investment Trusts (REITs). Given their status and higher income we’ve identified a few favoured positions like PHP and O where we plan to build larger positions in the near term.

The chart below provides a comprehensive analysis and detailed sector and sub-sector breakdown of the portfolio. Valuation-driven growth has seen technology rise from 14.5% to 19.4% purely due to the tech sector’s global strength in the first half of 2026.

For research purposes, we’ve listed the portfolio’s top twenty holdings. The top four have increased in value slightly skewing the weightings. Typically, this would suggest trimming a holding like ADI. However, with only 55 shares and healthy dividend growth, we believe we’re justified in holding without selling at this point.

For transparency, we have included a comprehensive breakdown of all the individual dividend income payments in the attached file below, which includes every payment between January to June 2026.

(Should you be experiencing it challenging to view any files, please ensure that your web browser is up-to-date.)

This update demonstrates that building a regular passive income is achievable through simple yet consistent steps, regardless of anyone’s background.

Generating an income from dividends is possible, so the earlier we start, the better chances we have of building that dividend snowball that can grow exponentially.

Until the third quarter update in early October 2026:

Thanks for reading & Happy Investing! 😀

SIPP Full Tax Year 2025/26 update.

We are pleased to report our tenth-year results for the 2025/26 tax year. Yet another milestone has been reached. What a difference from our very first tax year back in 2016/17, when we received just £1,663.47 in dividends.

Today, the total dividend income has reached over £4,706.99 during the 2025/26 tax year. What an achievement and result, considering that back in 2015, we were just beginning our investing journey. This annual figure equates to an average of £392.25 per month.

The overall total of dividends received within this ten year time frame is £32,466.55, and year over year we are up by 6.1%, compared to last year.

Please see the 2025/26 twelve-month annual dividend income chart below:

For visual purposes, the chart below shows the Tax year over year effect of growing dividend income.

A comprehensive breakdown of every payment received during 2025/26 is listed in the file below:

All this has been achieved through a total contribution of just £14,775 during this ten-year period. This equates to just £123.13 per month. Some of the main principles used to reach this milestone are consistency, staying focused, sticking to what we know works and then letting time and patience work their magic.

Anyone can achieve this, so the earlier we start, the better. By consistently investing in quality stocks and ignoring the market’s white noise, investing over the long haul, then letting compound interest work its magic. It is easily within our reach.

So until the mid year halfway update:

Happy investing and enjoy the journey 😀

Quarter one has now finished for 2026, so here is our round-up:

With quarter one now concluded and geopolitical concerns affecting economies worldwide, the fact that the portfolio has started with a modest year-over-year increase, we are encouraged by these results. Adverse exchange rates had affected income results from three US stocks by 2.4%, but this is beyond our control.

Total income for the first three months of 2026 is £971.71

Total investments made within the quarter equalled £3,155.31

Dividend increases that made a positive effect on the portfolio within the quarter came from Microsoft, Broadcom, Analogue Devices, Big Yellow, Cisco and GlaxoSmithKline, all making a modest impact on the year-over-year earnings. The Pound’s strong valuation knocked out some of the dividend increases due to negative currency conversion; however, the Pound has since slipped back against the US dollar for now.

Future dividend hike announcements made within the quarter that will affect quarter two came from the likes of Legal & General, GlaxoSmithKline, Bristol Myers Squibb, Safestore, Unilever, Coca-Cola and Cisco, which were all great and welcome news.

Two new positions were taken during the quarter, one in Primary Healthcare Properties (PHP), which will affect future income quarters for now. This is a new long-term holding we aim to increase over time. Secondly, we also added and received our first dividend from Equifax Inc, which was added in January 2026. Our aim is also to increase Equifax over time, subject to the availability of funds and exchange rates, especially as it is a North American business.

Taking full advantage of the falling share price of Diageo’s stock, we further added extra shares to the existing position, bringing the total to 330 shares for now.

Unilever has decided to pay its first quarterly dividend payment in quarter two (April) rather than in March. For comparison purposes, we have calculated our measurements as if the payment arrived within Q1. Quarter one 2026 would have been 1.2% ahead of 2025 (even though we are visually displaying the actual figures in the chart). We do not like businesses changing their payment dates as it throws out year-over-year comparatives; however, this is beyond our control. The plus side of things is that the payment will arrive, but just a little later than usual.

One disappointing announcement during the first quarter came from NextEnergy Solar fund, as future dividends will be cut in half! This will be another curveball we will need to navigate during 2026. We have watched their entire annual results presentation, and there are a few factors behind this decision. One major factor is the regulatory move in the government’s decision to shift payments from being linked to CPI rather than RPI. This move will impact all renewable power suppliers as it is likely to cause or reduce future earnings. This is more of a sector issue rather than an individual stock or fund problem. On the plus side, diverted funds will be used to both pay down debt and increase battery storage investments, which, in time, should provide an uplift in revenues. For all renewable businesses within the sector, being able to supply power during high peaks in demand from battery storage solutions can increase revenues for the businesses, something NESF will gradually increase investment towards, but aims to keep below the 30% threshold.

Please see the chart below for the monthly quarter one dividend income.

The chart below shows the portfolio’s top twenty holdings:

Diversification is key is de-risking, the chart below demonstrates the portfolios breakdown.

Until the end of the Easter Week and our next update where we will publish the 2025/206 Tax year figures.

Thanks for reading and:

Keep Calm & Carry On!

Happy investing 😀

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