Dividend Income Report, October 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 from my Stocks and 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, but you also get paid several times a month from extremely well run businesses.

This month I’ve had to deal with some big expenses, my fiancee and I had been planning to move outside of London close to April/May of 2019 in order to raise our daughter in a safe environment. My fiancee had surprised me by finding a property she really liked, and since I wasn’t expecting any big expenses until April I had continued to invest in the stock market every month!

Unfortunately, this means I won’t be able to invest large amounts of money for a few months while I pay back my short-term loan to my father, I’ll only be investing £100-200 plus any dividends that will be reinvested each month.

Transactions

For this month I deposited £500 in fresh capital and I reinvested my dividend income.

I sold my Blackstone Mortgage Trust (NYSE:BXMT) as I was unhappy with my total return of 9.32% and since I had a yield on cost of 7.36%, I swapped it with a business development company that is considered the best in the sector.

The proceeds were used to purchase Main Street Capital (NYSE:MAIN) and if we include the special dividends that they usually pay twice a year, I’ve not only made my portfolio more defensive but also slightly increased my annual income with a yield on cost of 7.70%.

With my fresh capital and dividends from the previous month, my purchases are as follows:

Imperial Brands (LON:IMB), 13 shares, cost £348.13, income £24.44, 7.02% YOC
British American Tobacco (LON:BATS), 10 shares, cost £343.51, income £19.52, 5.68% YOC
Legal & General Global Emerging Markets Index, £50
Legal & General International Index, £25
Legal & General Global Real Estate Index, £25

Dividends Received

For October I received income from 15 holdings, these will be listed below compared to the same period last year.

Company October 2017 October 2018 Change
Apollo Commercial Real Estate £19.55 £19.63 0.41%
Blackstone Mortgage Trust £19.51 £19.75 1.23%
Chatham Lodging Trust £5.29 £5.49 3.78%
Dynex Capital £20.08 £20.68 2.99%
EPR Properties £6.19
Gladstone Investment £7.25 £7.81 7.72%
Ladder Capital £16.65 £18.76 12.67%
Lexington Realty Trust £25.53 £26.01 1.88%
New Residential Investment £67.68 £70.27 3.83%
PennantPark Floating Rate £9.22
PennantPark Investment £23.27 £24.35 4.64%
Solar Senior Capital £8.82
Stag Industrial £7.83 £7.91 1.02%
WP Carey Inc £15.94 £16.32 2.38%
InfraCap MLP ETF £91.14 £20.01 -78.04%
Old Positions £100.35
£420.07 £281.22 -33.05%

DivRecOctThis is the last month that I have to deal with the legacy ETN holdings screwing up the bar charts and making my income growth look bad. One thing to note was InfraCap MLP ETF’s (NYSEARCA:AMZA) move from quarterly to monthly with a dividend decrease. As you can see from the table all of my income sources excluding AMZA have increased nicely, either due to foreign exchange rates or dividend increases.

The total income I’ve received this year is now at £2,366.55, meaning I’ve now passed what I made in all of 2017 with 2 months left! I’m expecting around £135 in November and £350 in December to put me at £2,800+, this shows that with fresh capital and dividend reinvestment my annual income has grown by over 20% compared to the previous year!

If I can maintain that growth rate my salary will be covered with dividend income in as little as 13 years! Though I may use some dividend payments in the next 5-7 years to fly back to the USA and take Rebekah (and our future second child) to Disney/Universal.

Dividend Increases

Gladstone Investment (NASDAQ:GAIN) declares $0.068/share monthly dividend, 1.5% increase from prior dividend of $0.067.

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.

2 Comments

Daniela · November 10, 2018 at 4:46 pm

Hi there! Thank you for sharing your portfolio activity in such detail. I wonder if you hold the US REITS in am ISA? My broker will not allow me to continue to hold US REITS in an ISA account due to tax issues.. the guy at the end of the phone could not give much detail why they changed their policy.
Best of luck with the house move.. looks like it’s a buyer’s market so hope that everything works well for you!

    Nick Mackintosh · November 10, 2018 at 5:16 pm

    Hey Daniela, thanks for reading again! The US REITS are in an ISA with hl.co.uk so I suggest you change broker if you live in the UK 🙂.

    As for moving house, we’re renting due to the advantages over a mortgage, maybe I’ll write a blog post on why I believe this to be true.

    I hope you enjoy the rest of your weekend!

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