Dividend income of December

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The last month of the year. Time has past by so fast! And the first full year of Dividend Growht Investing! I’m quite excited actually because this is the first month where I can make a comparison between this year and last year! From now on I can do that each month, so it will motivate seeing that the portfolio grows as expected.

As said already, the year has past very quickly. I think I can look back on a good year, in my private life and with my investing journey, but more on that in a later post. No on to the Dividend income of December!

 

Dividend income of December

December is the last month of the year and with that also the last month of the quarter. Usually the last month is pretty awesome, but this month is less then expected. That is mainly because CCP decided to pay the dividend in the beginning of January instead of in the end of December. This can give them a 2 year dividend growth streak without raising the dividend, but I don’t know if that is the motivation for them to do it like this. Oh, well, I still get the dividend. January will just look better then it would have been otherwise! Now on to the results:

Company name Ticker Dividend
Unilever UN € 6,26
Emerson EMR € 9,24
Total € 15,50

My dividend for December is only € 15,50. As I stated before, CCP is a big payer that pays in January. Walmart also pays in the 3rd month of the quarter 3 times a year, but they pay in the first month 1 time a year which means that this payment also goes to January.

My dividend income for December 2015 was € 8,77 which means that I have a 76,7% increase in my dividends compared to last year! And that without the payment of CCP and Walmart. Of course in my first year where I can compare with last year I will have bigger growth percentages compared to the following years, but still, I’m happy with the increase!

 

Dividend increases

This month Emerson paid it’s new dividend of $ 0,48 per quarter. Compared to the previous payment of $ 0,475 per quarter this translates to a 1,1% increase in payments. I knew the payment increase for Emerson would be small for a couple of years, so this is no surprise. However, I feel that the company is on the right path with transforming the company and I still think that most of the headwinds are external. So I expect a better performing Emerson within a couple of years which means bigger dividend increases!

If you want to know more about this increase you can read about it here.

 

Contributions and purchases

I added € 400,00 to my fund at the end of December. This way I am building my cash position which is now around € 1.600,00. I would like to buy a stock in Europe or otherwise in Canada. The dollar has become stronger lately compared to the Euro and for me US stocks are beginning to become seriously expensive. Also, it is good for my portfolio to have a bigger prescence in Europe and Canada. The problem however is that I don’t know any good stocks in those countries and I have some troubles getting the right information. There is so much information you can find for US stocks, but especially in Europe it’s hard to find the right companies. I already own Unilever and I don’t like Shell (even though it is a Dutch company…).

If someone has a golden tip for any European stock, then don’t hesitate to mention it!

I purchased nothing this month.

 

Conclusion

My dividend income in December was lower then expected, but it is not bad because the companies that caused this just pay in January. However, I have my first comparison with a year ago and my income for December went up with over 76% so I’m very happy with my first year result! Now to keep focused and on the right track I will make a post with my 2017 goals and plans to have a good idea on what I want to accomplish in the next year and how I will do it. Keep watching the site for more information on this!

How as your month of December? Are you happy with the full year results? And how do you approach the next year portfolio wise? Do you have a good tip for European stocks? Don’t hesitate to leave a comment below!

4 thoughts on “Dividend income of December”

  1. 2 dividends from 2 great companies. Nothing to complain about here. Nice annual dividend income increase. I haven’t calculated my December dividends yet, but they were somewhere around $750 dollars. I’m hoping to have a $1,000 month sometime in 2017.

    1. Nice, great result you have there! I wish I was there already, but that will take some time. However, the first step has been made and I’m looking at nice growth predictions for 2017.

      Thank you for your comment!

  2. Hey Pursuit 2 Freedom,

    When buying European stocks be very careful of the double taxation 😉 I don’t exactly know how it works in the US but it’s a pain for me (a Belgian investor) as I get taxed 15% by Uncle Sam and then 27% by the Belgian state.

    Also a high local dividend tax rate usually makes companies either give higher dividends to shareholders (limiting the possibility for the company to invest or sustain dividend growth, as the payout ratio will be high).

    Finally look for Fiscal stability … for example Belgium, due to its debt and political landscape increased dividend taxes from 15% to 30% (next year) in just 9 years…

    So take this into consideration when looking across Europe 😉

    Otherwise, which industry & company profile are you looking for?

    1. Hej NewbiesRock,

      First of all, thank you for your reply!

      I know about the fiscal climate for dividends in Belgium. It’s not good and it makes it hard for dividend investors. Especially the new law you got last year is not good for small investors. I live in the Netherlands and here it’s better arranged. For example, for US stocks I pay the 15% tax rate. I get the complete 15% back through my tax refund each year. In the Netherlands we pay a wealth tax that you have to pay anyway. The dividend taxes are deducted from the wealth tax. Therefore my tax rate for US stocks is 0%.

      If a country deducts higher taxes then the 15%, then I only get 15% back. But most countries have a treaty with the Netherlands that sets the tax rate at 15% for Dutch citizens. I don’t expect this system to change anytime soon. The wealth tax can change, but that doens’t affect the dividend taxation.

      What I’m looking for is growing companies that pay an increasing amount of dividend. Just like you can find on the aristocrats list in the US. The problem is that I want to spread my portfolio over European and US companies to limit the valuta risk. However, most interesting companies are US based and that makes it hard to build up a portfolio of Euro stocks. I have Unilever and MUV in my portfolio, but that’s it at the moment. I don’t like Royal Dutch Shell, to much risks for my taste.

      Greetz,

      Pursuit2Freedom

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