Dividend Income Report, June 2018
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!
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!
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%|
|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|
|InfraCap MLP ETF||£19.61|
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.
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!