Passive Income – Quarter 3, 2019

I’m super late with the Q3 update this quarter. Life is definitely getting in the way, but more on that later.

investment income

Q3 2019 Dividend Growth Stock Sales

Nothing this quarter.

Q3 2019 Dividend Growth Stock Purchases

Nothing this quarter

Dividend Income for Q3 2019

57 dividend payments were distributed in Q3, 2019 (an increase of 6 compared to Q2, 2019)

2331.20gbp (dividends from Q3) has accumulated in my broker account (post withholding tax and broker fees).

Hence, there’s an increase of 289.67gbp for dividend income in Q3 (compared to Q2, 2019).

The average dividend yield is 4.1% (taken from the ranking system), a decrease of 0.6% from last quarter.

Total return from the dividend portfolio is estimated to be 16.14%since inception (capital gain/12.04% + average yield/4.10%).

If we benchmark against the Vanguard Lifestrategy 80/20 (my UK SIPP), then the dividend portfolio is cruising ahead by 2.11%.

Dividend Reinvestment

No more reinvestments into the fund and share account (dividend portfolio). Dividend income will be held in cash for the moment.

Dividend Funds Overview (Capital)

The download from my Hargreaves and Lansdowne (broker) account below shows the state of play after Q3, 2019.

There’s been a capital gain of 5,954.34gbp for the dividend funds this quarter/ compared to Q2 2019. That’s with no capital contributions or dividend reinvestment.

Rental Income

There’s been a rental income of 1,182.56gbp after expenses.

SIPP 1 (UK Pension)

There’s been a gain of 7.91% re the SIPP this quarter and a further contribution of 2880gbp was made. 

SIPP 2 (Eire Pension)

Who’s this guy?

I’ve had this SIPP since 2008, although it was a different animal back then (and my own private enterprise owned it). I tried to consolidate it with my UK SIPP back in 2014, but without much luck. Of course, Irish pensions have different rules. Hence, I naturally let it ‘compound away’ over the years, as subconsciously, I knew it would be difficult to transfer out.

I bumped into ‘Pensions man’ in Budapest last year, a guy I go cycling with every Sunday. He used to be a pensions advisor in Ireland, so he gave me some advice on shifting it to a different provider. In conjunction with that, I used a financial advisor to to do the heavy lifting.

As my old enterprise had been wound up, the new provider had to put the value of the fund into a Buy Out Bond, in my name. As the owner of the policy, the member and the trustee, they needed me to sign an occupational pension transfer out form to transfer the policy into my sole name (as opposed to my old company name).

This whole process took at least 8 months, but we got there in the end. 

My FA is fairly upfront with it all and the old charges.

  • Plan charge of 0.5%
  • Fund charge of 0.62%
  • 5 euro per month policy fee

I know, disgusting. I think they were wearing a Dick Turpin mask. Let’s say I’ve managed to reduce that fee to a very acceptable level. A shout out to Pensions Man for advice on reducing my pension fees in Eire.

With regards to funds…where were you when we needed you in 2008 Monevator?  Anyway, what I have learned (over the years) is to opt for a global equities (world tracker) and a smaller proportion in emerging markets.  I had a vey mediocre Irish fund before this. So, another shout out to Monevator for a wonderful selection of fund options.

I now have 75% allocated in a Vanguard Global Equities Tracker and 25% in Emerging Markets.   Yes, a very high allocation to Emerging Markets, but we can chat about that next quarter.

There’s been a gain of 10% re SIPP 2, since transferring out.

Sorry, no fancy graphics like my UK SIPP.  

That’s all folks, thanks for tuning in.

 

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