Dividend Income Report, June 2018

Published by Nick Mackintosh on

Hey everyone and welcome to my Dividend Income series! This will be for you to see the income I receive in my Stocks & Shares ISA and the changes compared to the previous year. The great thing about investing is that you get paid several times a year by the companies you’ve put money into! So not only do you get a paycheck from your employer, you also get paid several times a month from extremely well run businesses.

I’ve recently come back from vacation and very much looking forward to blogging based on recent news such as Nike’s (NYSE: NKE) blowout Q4 and annual report. First things first I need to update you all on what happened in June, can you believe over half of the year is over already!

Transactions

Due to the vacation, I couldn’t really afford to invest in June apart from the £125 that goes into my indexes every month. Therefore the only holdings that have increased are my developed markets, emerging markets, and real estate indexes. No dividend reinvestments were made as I cashed out my £111.31 from May to put towards travel money.

I would usually advise investors against this, as you’re interfering with the compounding process and the future returns of the portfolio. It may not seem significant now, but its less money to snowball over the next 20-40 years.

One of the reasons why I’ve invested in high yield stocks is that it provides me with a safety net, and if there were any unforeseen circumstances I would have a cash buffer available as a last resort. I don’t like to withdraw dividends from my portfolio unless it’s absolutely necessary, and you should do the same!

Dividends Received

For June I received income from 17 holdings, these will be listed below compared to the same period the previous year. Since most of my holdings pay quarterly, the only big difference in June compared to March 3 months ago is the £65 from Legal & General and a £7 special dividend from Gladstone Investment.

Another huge benefit was the GBP/USD exchange rate falling from $1.40 to $1.32 over that period, providing me with both a portfolio valuation increase and income increase of 5.71%. As noted on my Portfolio tab, the majority of the USA holdings were bought at an exchange rate of $1.20, this means 9-10% of the returns are still not reflected in the charts until we get back to that exchange rate.

Company June 2017 June 2018 Change
Ares Capital Corp £32.87
Chatham Lodging Trust £5.39 £5.35 -0.74%
EPR Properties £6.18
Fidus Investment Corp £32.66
Gladstone Investment Corp £14.23 £14.35 0.84%
Imperial Brands Group £19.62
Legal & General Global Real Estate £0.55
Legal & General Group £64.79
Legal & General International £0.49
Monroe Capital Corp £22.58 £22.87 1.28%
New Mountain Finance Corp £26.58
Newtek Business Services £20.64 £21.79 5.57%
Oxford Square Capital £29.28 £29.72 1.50%
PennantPark Floating Rate £9.01
Solar Senior Capital £8.62
Stag Industrial £8.02 £7.90 -1.50%
InfraCap MLP ETF £19.61
Old Positions £49.45
£149.59 £322.96 115.90%

DivJune18

The year-over-year comparisons will not be realistic until 2019 due to changes in the portfolio in accordance to the MIFID II legislation in January. This simply meant a few of the sectors I liked to own such as Closed End Funds or leveraged Exchange Traded Notes are no longer available to me as a U.K. investor. This is represented in the table above as “Old Positions” and they usually made up the months of January, April, July, and October.

This means for July I’m expecting a decrease in income compared to what I earned last year. Fear not though! Below I’ll provide you with some comparisons compared to the previous quarter and previous year.

Comparisons

For Q2 2018 I received dividend income totaling £692.86, this represents an increase of 13.59% compared to Q1 if we exclude the return of capital from InfraCap MLP ETF back in January.

In Q2 2017 I received dividend income totaling £523.07, this represents an increase of 32.46% compared to the same period last year. The increase is a result of fresh capital added, dividend reinvestment and dividend increases.

Dividend Changes Announced In June

Newtek Business Services (NASDAQ:NEWT) has increased its 2018 annual cash dividend forecast to $1.72/share, vs. a prior forecast of $1.70/share, which would represent a 4.9% increase over the Company’s 2017 annual dividend.

W. P. Carey (NYSE:WPC) declares $1.02/share quarterly dividend, 0.5% increase from prior dividend of $1.015.

To any dividend bloggers or investors following my website, feel free to leave a comment below telling me how you did!


Nick Mackintosh

My name is Nicholas Mackintosh and I’m the Creator and Founder of HelpingTheLittleGuy.com I created this website to help anyone looking for a way to save and earn more with their money. Knowledge is given freely in order to give you a fair shake in a system that is determined to keep you poor, preventing you from having the lifestyle you deserve.

3 Comments

Jean-Louis Berger · July 4, 2018 at 1:55 am

Hi, nice blog and interesting to follow your financial jouney using high yield stocks. What do you think of MORL? Ever considered it given its +\- 20% yield?

    Nick Mackintosh · July 4, 2018 at 7:31 am

    Hey Jean-Louis, thanks for taking the time to comment!

    I explained below the Dividends Received chart that I can no longer hold CEFs or ETNs due to EU Legislation. I used to hold CEFL, BDCL, MORL. I also had Eaton Vance & PIMCO CEFs that I was forced to sell. If you buy the ETNs please be aware of the risks, they need to be very small allocations to your portfolio to help juice the yield.

    If you would like to read, you should be able to view here for free if you have an account on Seeking Alpha 🙂 https://seekingalpha.com/article/4136008-q4-2017-high-yield-ric-portfolio-update-featuring-eu-regulation-trolls

    Regards, Nick

Jim · July 23, 2018 at 8:58 am

Looks good. As a value stock I like Mcbride Plc, which trades on about 12x earnings has a decent divi of 4% and some prospects for growth.

Ashley House plc is the other one that is interesting on a forward 4 times earning. If changes come through to government policy to boast housing supply for elderly people (a review is underway) then this could easily trade on 16 x earning and grow quickly. Ashley house is a play on an aging population and a housing shortage, both of which are strong long term trends. Given that you can only lose what you invest, but the upside is unlimited ashley house is interesting, but risky.

Other than these stocks I cant find any value out there, so i’m sat waiting and trying to identify things to buy when the next financial crisis comes along.

I hope you had a good holiday,

Jim

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