Dividend Income Report, September 2018
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.
As I explained 2 days ago, I’ve recently become a dad so September was a busy and tiring month, to say the least!
For this month I deposited £500 in fresh capital and I reinvested my dividend income.
I kept to my gameplan from the previous month and bought an additional 19 shares in Imperial Brands (LON:IMB) for £507.96. The company still has a free cash flow yield of 11% so I’ll most likely continue to buy shares! I’m looking forward to the company’s annual report in November as I’m on the mailing list for a hard-copy, may not be environmentally friendly (like the cigarette!) but I hate reading from a PDF file.
I invested £100 into my 3 indexes, with Emerging Markets receiving £50 followed by Real Estate & Developed Markets receiving £25 each as I like to average down and lower my cost per share.
I also decided to sell my position in Lexington Realty Trust (NYSE:LXP) as I was made aware of their decision to cut the dividend due to reducing their exposure in offices and the capital will eventually be used for industrial properties. Though this will eventually be a better deal for shareholders if management can pull it off, I already have industrial exposure through Stag Industrial (NYSE:STAG), by selling LXP I realized a total return of 33%.
With the capital received from the sale, I invested in TriplePoint Venture Growth, a business development company specializing in startups. It should benefit from rising interest rates and I also got the added bonus in receiving an extra £23 a year in dividend income.
For September I received income from 16 holdings, these will be listed below compared to the same period the previous year.
|Company||September 2017||September 2018||Change|
|Ares Capital Corp||£34.00|
|Chatham Lodging Trust||£5.27||£5.40||2.47%|
|Fidus Investment Corp||£32.97|
|Gladstone Investment Corp||£7.14||£7.66||7.28%|
|Imperial Brands Group||£19.62|
|Legal & General Emerging Markets||£7.61|
|Legal & General Global Real Estate||£1.51|
|Legal & General Group||£37.35|
|Monroe Capital Corp||£22.05||£23.05||4.54%|
|New Mountain Finance Corp||£26.78|
|Newtek Business Services||£22.18||£25.11||13.21%|
|Oxford Square Capital||£28.60||£29.96||4.76%|
|PennantPark Floating Rate||£9.27|
|InfraCap MLP ETF||£19.82|
I was expecting slightly above £300 but it seems Solar Senior Capital didn’t want to pay me a dividend this month! They have a strange payout frequency where some months they pay dividends twice, so rather than receiving a monthly income, sometimes a month will be missed which is a shame.
Newtek Business Services and Gladstone Investment Corp were nice increases compared to the previous year, all the others have just benefitted from the GBP/USD exchange rate.
Dividend Changes Announced In September
For this month only 1 of my holdings announced a dividend increase and its 1 of the regulars, W.P. Carey!
W. P. Carey (NYSE:WPC) declares $1.025/share quarterly dividend, 0.5% increase from prior dividend of $1.020.
To any dividend bloggers or investors following my website, feel free to leave a comment below telling me how you did!