Passive Income – Quarter 3, 2016

I started my dividend growth portfolio, end of Q1 this year. Hence, this is the first passive income report in a series of reports. You can see SSE (SSE) is leading the pack with its final dividend payment of 102.50gbp. Its current annual income from dividends is a whopping 5.79%…which always helps.

passive income

Dividend Income for Q3 2016

DateTickerCompanyDividend (£)   
23/09/2016SSESSE plc102.50
22/09/2016SWKStanley Black & Decker Inc12.33
14/09/2016UTXUnited Technologies Corp14.24
05/09/2016PFZPfizer Inc.21.49
11/08/2016AAPLApple Inc.11.94
03/08/2016TAT&T26.79
19/07/2016CAHCardinal Health Inc.12.44
TOTAL201.73

 

Dividend Growth Stocks (Snapshot), End of Q3 2016

Company SharesCost Basis (£)Mkt. Value (£)Gain Weight
TOTAL32,141.8338633.58
Apple Inc.322439.872783.33+14.08% / £343.467.2%
AT&T Inc.892485.622792.92+12.36% / £307.307.3%
Boeing Co242412.632440.06+1.14% / £27.436.3%
Bovis Homes Group plc3382493.392954.12+18.48% / £460.737.7%
BP plc5872497.502641.21+5.75% / £143.716.9%
Cardinal Health Inc.442471.372622.03+6.10% / £150.666.8%
Deutsche Post AG1282485.673074.76+23.70% / £589.098.0%
Flowers Food Inc.2192493.982553.15+2.37% / £59.176.6%
Pfizer Inc.1142480.702980.91+20.16% / £500.217.7%
S&U plc1032489.062525.56+1.47% / £36.506.6%
Savills plc3432498.042455.88-1.69% / -£42.166.4%
SSE plc1642495.422571.52+3.05% / £76.106.7%
Stanley Black & Decker Inc.332457.723120.18+27.15% / £662.468.1%
United Technologies Corp342438.902663.20+9.22% / £224.306.9%

Reflects the price, as of the date the income report was published (last day of September 2016)

Stanley Black & Decker (SKW) is leading the way, with a 27.15% gain. Not the highest dividend payer out the bunch, but it’s rock solid and anticipates that it’ll raise its quarterly dividend, year upon year.

It is a dividend aristocrat after all i.e. dividends have increased for the past 25 consecutive years. In fact, SKW increased its dividends for the past 48 consecutive years. In two years, Stanley Black and Decker will join the exclusive dividend kings list, which consists of companies that have raised their dividend for at least 50 straight years. Boom!

Savills (SVS) is trailing the pack with a -1.69% decline. Another unjustified sell-off, as a result from Brexit. I purchased this stock after SVS lost half its valuation. It’s early days, as this is the newest stock (23rd September 2016) in my portfolio and hasn’t had time to grow…time will tell.

Portfolio Rebalancing for Dividend Growth Stocks

The plan is to rebalance every 6 months and re-invest the dividends I have sitting on account. Later on, I will contribute cash (once I have my core 30 stocks in place).

Investment ISA (Snapshot), End of Q3 2016

TickerFundCost Basis (£)Mkt. Value (£)Gain
TOTAL15,337.5919,772.80
SMTScottish Mortgage Investment Trust15,337.5919,772.80+36.88% / £5,656.15

Scottish Mortgage Unit Trust (SMT) was purchased during the bear market of January 2016. It had a shaky start but has pulled back and made a 38.88% increase in the last 9 months.

I’m currently performing research for a new multi-index fund portfolio, a lazy portfolio as some experts phrase it. But more on this next quarter…

P2P Lending (Snapshot), End of Q3 2016

PlatformDepositedInterest EarnedRateDefaults
TOTAL£1000£7.452.2%N/A
RateSetter£1000£7.452.2%NA

This is a relatively new area of investing for me, hence the defensive approach (lack of cash invested). Once I’ve done more research, there will be more to show.

I’m currently using the ‘rolling’ product through RateSetter, meaning I can withdraw my money at any stage without being penalized

SIPP (Snapshot), End of Q3 2016

FundShares Gain
Vanguard LifeStrategy 60/40 833+21.89%

My pension is in the form of a Vanguard Life Strategy 60/40 SIPP, which has made a 21.89% gain since I consolidated all my previous pensions into my SIPP, in early 2014.

Rental Income, End of Q3 2016

Rental income (minus letting agent fees etc) is 2941.64gbp. I paid my overseas property off this month (see ‘other notes’ below), so it’s relatively straightforward to work out my rental income.

I have another property I’ve invested in, which is currently breaking even. When I have that paid off, I’ll mention it in future income reports.

Gold

I sold my Gold biscuit in September 2016 (bought for 1183.83gbp in November 2006) and appears as a one-off in my income portfolio for Q3, 2016. A 260% Return on Investment, I wish I had bought more!
I purchased Flowers Foods (dividend growth stock) with the income (and still have some money leftover, which I left in my savings account).

Other Notes

I paid off the mortgage for my overseas property, which is a huge bonus. In order to achieve that, I lived…and now live a fairly frugal lifestyle (ditched the fancy man routine). I also sold my car (pride and joy) to aid this.
There was a bit of a dilemma with regards to using this money for further investment…however, to cut a long story short, I decided to pay off my debt. I’m now doubling up on another mortgage using this money. Again, reducing my debt….but that’s another topic for another time.

Now I would like to hear from you.

What were your biggest takeaways? How is your income and investing progressing?

Let us know in the comments…

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