Dividend Income – January 2015


plan on recording my monthly dividend payments on this blog for you all to see. I earned £9.88 in 2013 and £590.33 in 2014, and I have a goal to earn £2,000 in Dividends for 2015. This post will collate all of the dividends I’ve received this month and how I’m tracking against my Dividend Goals. I will reveal which companies have paid, and how much they’ve contributed. A new addition to this post in 2015 will be account I receive the income from. I have a NISA account with H&L, and a taxable share account with iWeb.
January Dividend Payments:
NISA
GlaxoSmithKline £15.20
National Grid £17.80
Loyalty Bonus £0.08
Total £33.08
Taxable Account
Berkeley Group Holdings £36.90
GlaxoSmithKline £13.49
Total £50.39
Combined Total £83.47
January’s dividends were much higher than normal for me – £83.47. Over the course of 2014, my dividends averaged £49.19 per month. I received a dividend payment in every month last year, so I can now make a Year-on-Year comparison for every month. In January last year I received £2.66. This represents a 3,038% increase in comparison. That’s a nice way to start the year.

In order to be on track with my 2015 Dividend Income Goal, I need to bring in £167 per month. My dividend income is very sporadic so I’m not expecting to hit that amount every month, but it’s useful to know what I need as a guide. It’s clear I have some work to do this year, but I’m pleased with the start I’ve made.



How was January for you? Have you started the year well? Are you making great YOY progression?



0 Comments

  • Anonymous

    Reply Reply 1st February 2015

    Nice going Huw

    I have been investing for quite a few years mainly in growth stocks and Index trackers. I had only been concerned about growth and not too interested in income, however, as FI started to get closer I became uncomfortable knowing that I would have to sell part of my investments to get an income from it. In August 2014 I took a closer look at dividend stocks and came across Dividend Mantras blog. This was a revelation to me and I started the slow move over to dividend growth stocks. My main holdings are still in growth and tracker funds, however, each month our monthly contributions into both mine and my wife's NISA are purely into dividend growth stocks.

    January 2015 has been our best month so far with a dividend income of £336.53.

    I take a lot of inspiration from reading blogs like this, so thank you Huw for taking the time to write it.

    Richard

  • DividendHawk

    Reply Reply 1st February 2015

    Hi Huw

    Congratulations for the great dividend income in January and for a good start for 2015!

    Regards,
    DH

  • Cerridwen

    Reply Reply 1st February 2015

    It's great to see such a large increase in your dividends compared with 12 short months ago. Just think where you would be if your payments keep on increasing at the same rate 🙂

  • I also received a divi from GSK. Sainsbury's, Tate and Royal Mail completed the January divi payouts from my HYP. My year on year increase is not quite as impressive as yours at 291%. I'm a few years further down the road than yourself though so that's to be expected.

  • No More Waffles

    Reply Reply 1st February 2015

    Huw,

    I laughed out loud at your 3,000+ increase from last year. Amazing progress!
    I'm glad to be a fellow GlaxoSmithKline shareholder. Can't wait for their next big dividend payment to hit.

    Keep it up over there,
    NMW

  • Theres Value

    Reply Reply 1st February 2015

    Huw, you're off to an awesome start! I'm sure you're going to have an absolutely fantastic year! I was just wondering, are you considering any euro stocks, since they are so cheap with the currency having been totally pummelled of late (we're at roughly a 7 year high against the euro).

    Also, two more questions – are you buying in time for the shares to go ex-div, or are you purely concerned with getting quality stocks at good prices, no matter what point in the year they're at?

    Lastly, once you've got a few years into your journey, would you consider investing in a SIPP or other type of pension arrangement? Because you could get the 25% tax top-up on your investments then.

    Best,

    M

  • Andrew

    Reply Reply 1st February 2015

    This is great – I just started tracking the dividends I'm getting so this post is interesting. It's refreshing and fascinating to see your whole financial story laid out like it is in this blog. Keep going!

  • Dividend Diplomats

    Reply Reply 1st February 2015

    FFby40,

    NICE! Looks like quite an increase from the percentage standpoint haha, You're going to have quite the year ahead of you, record breaking months to come for you – congrats on the dividend income, you'll be crushing a good month come March I feel.

    -Lanny (one of the Diplomats)

  • Huw Davies

    Reply Reply 1st February 2015

    Hi Richard,

    When I started investing I made the call to invest in income stocks/funds. I liked the idea of passive income and having the choice. There's a lot of money to be made in growth investing (arguably more), but it does involve selling stock to receive the money.
    What an impressive turnaround Richard! £336 in a relatively quiet month like January is outstanding. You're very kind with your words, but I equally find great motivation from looking at what can be earned by continuing on this path. Thank you for sharing your earnings and for supporting the site. I really appreciate it!

    All the best
    Huw

  • Huw Davies

    Reply Reply 1st February 2015

    Hi DH,

    Thank you do much! Yes a cracking start to the year. Hopefully it's the first of many!

    Cheers
    Huw

  • Huw Davies

    Reply Reply 1st February 2015

    Hi Cerridwen,

    I know! It's very encouraging and although I'm unlikely to sustain this high % increases, I'm confident I'll be able to increase my monthly income every month with future purchases and increasing dividends.

    Many thanks
    Huw

  • Huw Davies

    Reply Reply 1st February 2015

    Hi Lanny,

    I hope you're well!

    Yes the increase % was a bit crazy, and unsustainable, but it's nice to see what you can do in a year at these early stages. March should be a lovely month for me, and it looks like I should break the £200 barrier at some point this year – That amount will be 25% of my monthly expenses.

    Thanks for stopping by
    Huw

  • Huw Davies

    Reply Reply 1st February 2015

    Hi NMW,

    Ha ha, yes I know! I don't think I'll be seeing too many of those types of increases on a regular basis. Congrat's to you to NMW, as a fellow shareholder. I'm hoping the company can move on from some of their fines and benefit from some nice capital growth like other pharmaceutical companies. The ongoing yield is still solid though.

    Thanks for the well wishes, and I wish you all the best in return!
    Huw

  • Huw Davies

    Reply Reply 1st February 2015

    Hi RIT,

    Thanks for stopping by and sharing your months performance. 291% is outstanding, and you're much closer to FI than I am. I find it very encouraging that you can increase your portfolio value to that degree at the stage you're at. Keep up the good work!

    Huw

  • Huw Davies

    Reply Reply 1st February 2015

    Hi M,

    I hope you're well!

    Thank you very much. I hope you're right. I'm very excited about this year. I have my eye on a couple of companies in the UK, but they're a little higher than I would like. It just so happens that since I gained the tax code from the US, I've considered looking overseas to dividend investing. I haven't actually researched any companies yet in Europe or the US but I'm most certainly open to it. Are there any that you have you're eye on or would recommend at the moment? I didn't realise the Euro was so cheap at the moment, so it makes your point even more appealing.

    I won't buy simply on ex-div date. If I'm interested in a couple or more stocks and they're similar in perceived value and yield etc I'll check the dividend date on it. If I'm being honest, I'm less cornered with it to be honest. I've also bought a few companies after the ex-div date as the price went down to a level I wanted to invest in. I'm more concerned with getting quality stocks at the right price to answer your question.

    The 25% tax advantage from a SIPP is appealing, but waiting until I'm 55 doesn't. I like the autonomy of a NISA, and as I'm still relatively young (32), I can build up my NISA to a level of income that can surpass my expenses well before my 55th Birthday. I don't like the fact the government can change the rules on pensions so freely. Granted, it has been to allow more flexibility in the future, but who's to say it won't go the other way in 5-20 years. There have been little changes to the ISA/NISA rules, apart from allowing more contributions so I'll stay with for now. I won't say never, just not for now.

    All the best
    Huw

  • Huw Davies

    Reply Reply 1st February 2015

    Hi Andrew,

    Thank you very much! It's so nice to hear comments like that.

    I'm glad you find it interesting and refreshing. I like to be an open and honest person. I personally find it more interesting when others act in the same way – Jason from Dividend Mantra is a good example.

    All the best
    Huw

  • weenie

    Reply Reply 2nd February 2015

    HI Huw, a fantastic start to the year with your dividends – I too laughed at the 3000% increase from last year, absolutely brilliant! It must be so motivating to see year on year increases like this, albeit like you say, it won't be 3000% every year but every little increase adds up! Great to see that you sorted your portfolio so that you have have dividends paying every month, must be good to see the income rolling in regularly, as well as for comparison purposes. I think that's something I'd like to achieve, have a pay out, no matter how small every month. Keep up the great work!

  • Huw Davies

    Reply Reply 2nd February 2015

    Hi Weenie,

    The increase was a bit ridiculous, and I'm not sure I'll continue to increase it to that degree each month! You're spot on, it is motivating to see the annual increases now. It put a smile on my face to see £5 last year as I knew it was the start of something big. Now, £80 in a quiet month like January is fantastic. That covers a lot from me. I'm looking forward to the £200 plus months I'm due later this year. That covers 25% of my average months.
    I agree, I like the fact I have a payout every month now. Some months are small, but it's still nice to have a little bit every month. I hope to develop the smaller payouts and to continue growing the 'Big months'. Thanks for stopping by!

    Huw

  • Theres Value

    Reply Reply 2nd February 2015

    Thanks for the comprehensive reply. I am putting in a small amount to my SIPP every month, and putting the rest into the NISA, but of course, we are saving for the little lad too, so he gets a little in cash, a little in his NISA, and a little in his SIPP. I also hate the fact that the rules can change quite dramatically, but I figure I will have the timescale to adjust my plans if things change for the worst, plus, like you, the majority goes into the NISA, which has wonderful flexibility.

    Re foreign stocks, my largest shareholding is actually in Ford, and I wish I'd had the money sooner, but alas I didn't. I'm still looking to buy more shares soon hopefully. I'm also looking at BMW, Munich Re, and BASF. The Euro is so cheap right now, it might be wrth just finding a good tracker.

    How about Nestle too, I am not going to buy, but they're a solid company.

  • Dividend Legion

    Reply Reply 2nd February 2015

    Hello Huw,

    Great month, that's an impressive amount of dividends. it won't be long till 83.47 is the MINIMUM amount you get for a month. Although if you continue with that 3000% increase rate, I reckon you'll reach financial independence in…a few weeks? 😛

    Just one question though – how come you're using a taxable account on top of a NISA? Is it because you've maxed out the allowance on it?

    DL

  • Tawcan

    Reply Reply 3rd February 2015

    Great month and great start to 2015. Keep up the good work.

  • Huw Davies

    Reply Reply 3rd February 2015

    No problem at all. Thank you for explaining your current strategy. I think there's a lot to be said for making the most out of both for a lot people. Perhaps if I was a little older I would have SIPP, and in the future I still may.

    Thanks for the heads up on some of the foreign stocks. I have plenty of research to do in that area, as I haven't done any to do, but it's nice to know a few companies to check out straight away. I appreciate you putting them on my radar.

    Good luck with your upcoming stock selection!

    Huw

  • Huw Davies

    Reply Reply 3rd February 2015

    Hi DL,

    You're right, I'm sure by the end of the year this amount will be less than my average month. That's the great thing about DGI, it just gets better and better through time. I'd love to hold onto 3000% increases if I can. I'm not sure how sustainable they are, but I'll enjoy it for now. 🙂

    You're right again. I've maxed out the NISA for 14/15, so I'm using a taxable account to put extra capital in. I was surprised how similar the taxable account is to a NISA too. I only get taxed on an annual income over £11,000! Which is currently my end goal. I can't wait to be in a position where I'm maxing out my NISA each year and still able to accumulate a taxable account where that would be a problem!

    Thanks for stopping by
    Huw

  • Huw Davies

    Reply Reply 3rd February 2015

    Thanks Tawcan!

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