Weeks 5 and 6

Week 5 was very quiet. Some of the companies we have position released suggestions for dividends for 2019, no suprises. We received Vodafone dividend on Friday. We have DRIP on Vodafone, since our planned position is far from complete. At the moment we are not buying this company with "new" money. We received 27 shares at total price of 43,33 € or 1,406351 £ per share.

Week 6 was a bit more active. On Monday we received remaining cash dividend from Vodafone, a whopping 0,39 €. Then on Thursday we received dividend from Whitestone REIT 49,30 € (after withheld taxes and fees).  On Friday we received dividend from several companies. We got dividend from Exchange Income corp 16,61 CAD after withheld taxes. This is approximately 10,36 €. Second Canadian dividend came from Inter Pipeline. Amount was 36,34 CAD which was around 24,28 €. From Omega Healthcare Investors we got 48,90 € and from Realty Income we got 16,70 €.

These dividends raise our gained net capital income to 448,89 €. Now we have accumulated 9,38% of our 2019 target of gross capital income 4786,43 €.

week 4

First, the mandatory disclaimer since this time the company names are mentioned: Even we strongly encourage people to save and invest our blog is not meant to be any kind of investment advice. We are not professionals and we do not have any kind of permits or education to give the investment advices. This blog or companies mentioned here should not be considered as an advice to invest those companies. We encourage people to investigate companies by themselves and make own investment decisions independently.

Now: what happened to us this week? First we increased our position in  AT&T. The company stock has fallen quite low, and for us it started to feel intresting investment again a while ago. We have earlier bought a small position, and did so again this week. We bought 15 shares with total cost of 391,97 € including fees. This is quite risky investment due the fact that AT&T has quite much debt and 5G roll-out will increase need for investments. This years expected gross dividend will increase by 22,95 $.

Nokia declared the suggested dividend. The suggested dividend was 0,20 €/ share. The dividend increase is 5,26% if the general meeting approves. Nokia also suggests that dividend payment schedule will be changed from annual to quarterly dividend. We hope that general meeting will approve this. Unfortunately we are not able to participate the meeting. Nokia is one of the shares which has been on and off from our portfolio many times. This change of dividend payment policy surely raises our interest towards the company. The interest has risen already because of the recent news and 5G network roll-out starts. The dividend increase and changes of schedule will affect on our target dividend income by -8€ in year 2019, since nokias last quarterly dividend will be moved to 2020.

The total of received dividends this week was 142,38 € withheld taxes and fees deducted. We also updated the pie to be more accurate by adding other capital incomes (interests and profit). We have sold small amount of funds earlier this year and we got small profit from this transaction. We have also received some interests from savings. Our other capital income year to date has been 10,27 €.

We paid back small amount of our investment loan. We paid back 213€ + interests and fees.

Dividend expectations for 2019

Some Finnish companies have already published their suggestions of dividends so we decided to calculate this years expectation for dividends.

The sum of dividends is calculated by using today's exchange rates of currencies, suggested dividends if known, market expectations if suggested dividend is not known or declared dividends, so that latest declared dividend is expected to remain the same whole year. We have quite big currency risk on our portfolio. At the moment we get dividends in six different currencies. Some of the dividends are received in local currency, but in most cases the bank automatically converts dividends to euros (and takes small fee).

And now to figures. We are expecting to get around 4 784,43 € of gross dividend income this year. This will lead to overall gross dividend yield of 6,39 % compared to todays value of the portfolio.

The net dividend income will be around 20% to 30% smaller than expected gross dividend income. We are not following the real net dividend income, since part of the taxes are taken after tax year ends. The net dividend income is the money that actually hits our bank accounts, after withheld taxes, bank fees and so on.

 

The pie represents how well we are proceeding compared to our expectations, it should not be full at the end of the year, since received dividends are net dividends and red is not yet received. Whole pie represents the expected gross dividends. The reason for this, is that we want to see how much from the pie goes to taxes and fees. 

First post: Current situation

After years of reading dividend blogs, we decided to start writing our own blog. This blog is a diary of our growing passive income. Our goal is to have more secure retirement income. We will follow only our financial investments and passive income. 

The summary of our financial assets on 20th January 2019:

Investment funds: 11 241,88 €
Shares portfolio: 75 521,06 €
Coop memberships: 1 500 €
Total financial assets: 88 262,94 €

Loan for investment: 9361 €

Net financial assets 78 901,94 €

This years' passive income so far: 113.26 €