Dividend Income Update September 2018 And Total Return Overview

|
Includes: D, O, OAK, T, VDEKF
by: Stockles

It's time for the monthly dividend income update. As always, you can find the updated info at any time here Dividend Income Spreadsheet and the Portfolio Spreadsheet.

Summary:

  • Dividend Income for September 2018: $118 or 977 NOK
  • Year-to-year growth for September: 264%
  • Total YTY growth: 92.39%
  • New spreadsheets included such as Total Return and Income per Company

Living While Saving

Since the last dividend income report, I've started with a small business idea. I am looking to use Alibaba (NYSE:BABA) to import the products to Norway, but I think I will leave it at that for now. Will tell you more once the size of the project increases.

Let's move on to stocks and talk a bit about my investment strategy

Goal of my DGI portfolio

The goal of my DGI portfolio is to provide an alternative income which doesn't come from me spending countless of hours in the office. However, I want to emphasize something:

I do not think that the DGI strategy is the best strategy to maximize the amount of money in your account.

In the long-term perspective (20 years and more), I truly believe that indexing is the best way if you want to achieve the highest total return. That's why I also combine my DGI strategy with indexing to get the benefit of both.

(My boring index portfolio consists of a high weighting in the emerging market, global index, a global multifactor index fund and a few free Nordic index funds)

While it's not the best strategy, it's certainly not the worst. You can do far worse than going the DGI way.

My goal is to get a solid extra income which makes it possible for me to enjoy and actually use a portion of my money without feeling bad, especially since I have a girlfriend in Tokyo and have to fly there a few times each year. That's not frugal at all, but who cares. The dividend income makes it possible for me to fly to Tokyo as much as 5 times if I wanted.

But sure, I want the income to grow, so a reasonable amount of usage is preferable.

Total Return of My Portfolio

While I don't really aim to get the highest amount of total return on the DGI portfolio, I want to see increased total return year by year. There's no point investing in a stock were the total return in zero or negative. The closest thing which I can accept is AT&T (NYSE:T), but I see AT&T as a proxy bond and bonds will never beat stocks in the long run. However, they provide some nice income from time to time.

(I've hidden most cells due to privacy)

Most investments have returned positive numbers and haven't been in the portfolio for a longer time than 2 or 3 years. Also, my beta is around 0.4 which means my portfolio is moving slow in either direction.

Like today, all indexes are down 1% while I'm only down 0.27%. However, one could easily make the argument that the total return, even though it's positive, it should have been way more in this bull market.

Well, not really. It depends what you invest in.

  • The 1-year return for the consumer staples sector, REIT sector and utility sector is 2.6% (-15% relative to SPY), 1.7% (-15.9% relative to SPY) and 2.7% (-15% relative to SPY)
  • The 5-year return for the consumer staples sector, REIT sector and utility sector is 52.1% (-33.9% relative to SPY), 47.9% (-38.2% relative to SPY) and 62.9% (-23.1% relative to SPY)

Clearly, all of those sectors, which make the fundamental part of my portfolio, have been bad momentum investments. However, I like to buy boring sexy companies which makes it easier to sleep at night, and I also think that capital will be replaced at one point, and then the picture will be different.

My top 5 positions are

  • Dominion Energy (NYSE:D), Realty Income Group (NYSE:O), Veidekke (OTC:VDEKF), Kopparbergs, and Oaktree Capital (NYSE:OAK).

Now over to the dividend income…

Dividend Income September 2018

The total dividend income for September landed on $118 which is a 264% increase from September 2017. The total dividend for 2018 is now 17,761 NOK or $2,152 which means a 92.38% increase from 2017.

For the income per month, day and hour, as well as the SleepMoneyTotal, go to the Dividend Income Spreadsheet.

The main objective now is the make sure that I beat the past year's income. For September, that's also the case.

Well, 3 USD or 24 NOK for sleeping. At least my coffee is "free".

That's it. Remember to subscribe to my page to stay updated. I will become more active once this boring bull market takes a break.