Month two is in the books, and it is time for me to review my monthly dividend income. This month was unique for me as it is the first month since I started on this journey in December 2017 that I have made less than the same month 12 months previous.
There is a good reason for that. During 2021 and 2022, I played around with option and dividend capture strategies with different levels of success. I started out this year with a clean slate and a goal to focus purely on dividend growth or dividend income stocks. No more fancy tricks. Hence, I am not surprised I have seen my first down month.
That said, my new base is over €120, and I am still looking forward to April and May when my European companies will pay their annual dividend.
If you would rather listen to me talk about my dividends, than please tune in to the video below. A like on the video will actually help the channel grow 🙂
Purchases this Month
February has been a busy month regarding purchases, where I invested in 10 companies. God Bless low Fees. I added over €64 (before tax) in forward annual dividend income and increased my PADI to 11.33%.
NN Group N.V (NN.AS)
NN Group N.V. is a multinational financial services company headquartered in the Netherlands. The company provides various insurance and pension products and services, including life insurance, general insurance, and pensions. NN Group was formed in 2014 as a spin-off from ING Group and is now an independent company listed on the Euronext Amsterdam stock exchange. NN Group has a strong presence in Europe, with operations in the Netherlands, Belgium, Luxembourg, Central, and Eastern Europe, and Japan. The company is known for its innovative and customer-centric approach to financial services, focusing on delivering high-quality products and services to meet the evolving needs of its clients. With a strong track record of stability and growth, NN Group is a well-established financial services industry player poised for continued success.
Shares Bought: 36 Forward Dividend Income Added: €72.80
VICI Properties (VICI)
Vici Properties is a leading real estate investment trust (REIT) focused on the gaming, hospitality, and entertainment industries. The company was formed in 2017 as a spin-off from Caesars Entertainment and is now an independent company listed on the New York Stock Exchange. Vici Properties owns a diversified portfolio of properties, including gaming facilities, hotels, and other entertainment venues. The company’s portfolio includes some of the most iconic and well-known gaming properties in the United States, such as the Harrah’s and Caesars brands. Vici Properties is committed to delivering value to its shareholders through rental income and capital appreciation.
Shares Bought: 34 Forward Dividend Income Added: €53.04
Ares Capital Corporation (ARCC)
Ares Capital Corporation is a leading provider of financing solutions to middle-market companies in the United States. The company is a publicly traded business development company (BDC) listed on the NASDAQ stock exchange. Ares Capital provides various debt and equity financing solutions, including senior secured loans, mezzanine debt, and equity co-investments. The company invests in companies across various industries, including technology, healthcare, and business services.
ARCC has constantly distributed dividends since 2005. While the dividends are not continually growing, I don’t need much growth with a 9% yield to make a decent return.
Shares Bought: 20 Forward Dividend Income Added: €38.40
T Rowe Price (TROW)
T. Rowe Price is a global investment management firm that offers a range of mutual funds, exchange-traded funds (ETFs), and separately managed accounts for individuals, institutions, and retirement plans. The company was founded in 1937 by Thomas Rowe Price Jr. and has since grown to become one of the largest investment management firms in the world, with over $1.6 trillion in assets under management.
T. Rowe Price is known for its active management approach, where portfolio managers actively research and select investments to help clients achieve their long-term investment goals. The company’s team-based portfolio management approach focuses on fundamental research and risk management. In addition to its core offerings of mutual funds and ETFs, T. Rowe Price also offers a range of retirement planning solutions, including target-date funds, managed accounts, and retirement income solutions. The company has a strong reputation for providing high-quality customer service and has won numerous industry awards for its investment products and services.
Shares Bought: 10 Forward Dividend Income Added: €48
HP Inc (HPQ)
HPQ, or HP Inc., is a leading American technology company that designs, manufactures, and sells personal computers, printers, and related accessories and services. HP was founded in 1939 and has its headquarters in Palo Alto, California.
HP is well-known for its innovative products, including laptops, desktops, tablets, and printers, designed for home and business use. The company also offers a range of software solutions, including security and management software and cloud-based services for businesses.
In recent years, HP has expanded its focus to include other technology areas, such as 3D printing, gaming, and immersive computing.
HP has a strong presence in the global market and operates in over 170 countries. The company has a reputation for quality and reliability, and its products are widely used in both the consumer and enterprise markets. HP is also strongly committed to customer support and has won numerous awards for its service and support programs.
Shares Bought: 7 Forward Dividend Income Added: €7.27
W.P Carey (WPC)
WPC, or WP Carey Inc., is a leading global net lease real estate investment trust (REIT) that invests in high-quality commercial properties leased to tenants on a long-term basis. The company was founded in 1973 and is based in New York City.
WPC owns and manages a diversified portfolio of properties across various sectors, including industrial, warehouse, office, and retail. The company’s tenants include many well-known brands and companies, such as Home Depot, Coca-Cola, and ExxonMobil. WPC’s portfolio spans North America, Europe, and Asia, providing broad geographic diversity for its investors.
As a net lease REIT, WPC’s tenants are responsible for most property-related expenses, including property taxes, insurance, and maintenance. This allows WPC to generate a predictable and stable rental income stream, with long-term leases typically ranging from 10 to 25 years.
WPC has a strong track record of consistent growth and dividend payments, with a history of increasing its dividend yearly since 1998. The company’s conservative approach to balance sheet management focuses on maintaining a strong financial position.
Shares Bought: 8 Forward Dividend Income Added: €34.24
JOHNSON & JOHNSON (JNJ)
JNJ, or Johnson & Johnson, is a multinational healthcare company based in New Brunswick, New Jersey. The company was founded in 1886 and has since grown to become one of the world’s largest and most diversified healthcare companies.
JNJ operates in three main business segments: pharmaceuticals, medical devices, and consumer health. The company develops, manufactures, and markets various products and services across these segments, including prescription drugs, medical devices, diagnostic equipment, and consumer health products such as over-the-counter medications and personal care products.
JNJ is known for its innovative and high-quality products and has a strong reputation for research and development. The company invests heavily in R&D, focusing on developing new drugs and medical devices to treat various diseases and medical conditions.
Shares Bought: 1 Forward Dividend Income Added: €4.52
Main Street Capital (MAIN)
MAIN or Main Street Capital Corporation, is a publicly-traded investment firm that provides debt and equity capital to small and medium-sized businesses across various industries. The company was founded in 1997 and is based in Houston, Texas.
MAIN primarily invests in privately-held companies with annual revenues between $10 million and $150 million. The company provides flexible financing solutions, including senior secured loans, mezzanine debt, and equity investments. Its goal is to help businesses grow and achieve their strategic objectives while providing attractive risk-adjusted returns for its investors.
MAIN’s conservative investment philosophy emphasizes risk management and due diligence in its investment decisions. The company has a team of experienced investment professionals with deep expertise in various industries, enabling them to evaluate investment opportunities and manage risk effectively.
In addition to its core investment activities, MAIN is committed to providing value-added services to its portfolio companies, including strategic advice, operational support, and access to its network of industry contacts.
MAIN has a strong track record of performance and has consistently generated attractive returns for its shareholders. The company is a member of the S&P SmallCap 600 Index and has been recognized for its financial strength and stability.
Shares Bought: 10 Forward Dividend Income Added: €27.20
COMPANIES SOLD THIS MONTH
I hope I don’t habitually sell companies in 2023. However, I sold six from my portfolio in February. The first two I sold are CEFs All Star Liberty Fund ($ASG) and Flaherty & Crumrine Pref and Incm Fd Inc ($PFD). These are part of the high-Income part of my portfolio, and I only sold them because I no longer have access to buy these on Interactive brokers. These funds do not offer a KIID, so they are out of bounds for European retail Investors.
The second block of three companies cut their dividend; honestly, all three were relatively predictable. Each company has a good history of maintaining its dividend, and it was a small risk play to have $INTC, $VFC, and FRE.DE in the portfolio. Luckily, their poor financials was baked into the price when I bought a small portion of each company, and I even managed to make a small profit in capital gains on them.
The last company ($GNK) was a trade I had set up from last year and had an automatic sell order at $19. This was an extremely high yielder, but I didn’t buy the company for its dividend. I bought them because I felt they were undervalued and the share price would match their fundamentals over time. Shipping can be tricky to navigate, but it was tempting to hold on to them due to the high dividend yield, my original plan was to sell at $19, and I am sticking to that. Now I only have three more companies to offload to be 100% concentrated on Dividend income. They are ($CCL, $SOLO and $WISH)
Dividend Received this month.
In January, I receivedc€120.54 in dividends from 10 companies and CEFs. At&T ($T), Verizon ($VZ), British American Tobacco ($BTI), ABBVIE ($ABBV) Clough Global Opportunities Fund ($GLO) , Realty Income ($O), Blackstone ($BX), Texas Instruments ($TXN) and Siemens (SIE.DE)
As you can see, My dividend Income started at €3.98 in Jan 2019 and has grown to €120.54 in 2023. Year on Year, my dividend income in February decreased by 33.% due to At&Ts dividend cut and too much action on my behalf. Looking back, I have done too much selling over the last five years, Particularly for a buy-and-hold investor. However, I think it takes a couple of years to understand what you want as an investor, as there is a lot to learn. I would like to hope selling companies is an activity I will do less and less as I mature as an investor.
One thing that keeps me focused is reflecting on the dividends I have received over the last five years, and I love the staircase effect of my total dividends received over the last five years.
Last year I earned just over €3200, and my current PADI is €3626, which is 11.33% of my goal to make €32000 after-tax a year in dividends. I actually increased my target goal from €23000 due to inflation and lifestyle creep. In 2023, I aim to reach an average dividend of €400 per month by the end of the year, which is a pretty lofty goal, but we will see what happens.
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