I posted the last income report, just days before the markets took a tumble in early October. Since the end of the last quarter, the S&P 500 has declined more than 14% (measured using the ETF SPY). And the FTSE 100 has fallen 12.5% this year. This has created lots of buying opportunities.
Q4 2018 Dividend Growth Stock Sales
Nothing this quarter.
Q4 2018 Dividend Growth Stock Purchases
56 shares of Kraft Heinz (KHC) on 24 October 2018 for 4398.56 pence per share
13 shares of Broadcom (AVGO) on 08 November 2018 for 18350.97 pence per share
52 shares of Altria (MO) on 13 November 2018 for 4717.32 pence per share
20 shares of Raytheon (RTN) on 31 December 2018 for 12017.88 pence per share
Dividend Income for Q4 2018
38 dividend payments were distributed in Q4, 2018 (a decrease of 3 compared to Q3, 2018)
1454.89gbp (dividends from Q4) has accumulated in my broker account (post withholding tax and broker fees).
Hence, there’s a decrease of 346.08gbp for dividend income in Q4 (compared to Q3, 2018).
The average dividend yield is 5.25% (taken from the ranking system), an increase of 0.66% from last quarter.
Total return from the dividend portfolio is estimated to be 0.02%, since inception (capital gain/-5.23% + average yield/5.25%).
I’ve taken a screenshot straight from my H&L account, to show some transparency. Please see the bar chart below to show my progress.
5,652.20gbp of dividends were distributed in 2018.
Compared to 2017, the dividend income has increased by 2,604.26gbp. A year over year growth of 85.4%.
(Current Year Dividend Income – Last Years Dividend Income) / Last Years Dividend Income = Year Over Year Growth Rate
Dividend Reinvestment
AT&T (T) has been identified as the highest ranking stock, using the dividend ranking system.
1. AT&T (T)
2. British American Tobacco (BATS)
3. Kraft Heinz (KHC)
However, as a rule, I never reinvest dividends into a previous high ranking stock (more than twice). Otherwise, I become too overweight. I’ve already reinvested in AT&T twice.
So, British American Tobacco is my next high ranking stock. It was tied second with Kraft Heinz. But since I hold less stock (less weight) in BATS, I therefore reinvested in BATS.
Hence, I deployed 1000gbp (just over 1000gbp in accumulated dividends sitting on account).
I purchased 39 shares of BATS at 2497.125 pence.
For more information on how I reinvest my dividends for maximum return, click here.
Dividend Funds Overview (Capital)
The download from my Hargreaves and Lansdowne (broker) account below shows the state of play after Q4,2018.
There’s been a capital loss of 14,039.181gbp for the dividend capital this quarter (dividend buys, dividend re-investment and a good sharp correction in the market).
Investment ISA (Scottish Mortgage Trust (SMT))
There’s been a loss of 4,887.76gbp/ 32.15% for the ISA/ SMT fund this quarter.
Compared to 2017, the investment ISA/ investment trust made a capital gain of 989.44gbp/ 4.01% in 2018.
Rental Income
Total rental income this quarter is -1446.64bp after management, internet, repair and utility fees.
Q1 = -479.58gbp
Q2 = +2542.87gbp
Q3 = +3072.76gbp
Q4 = -1446.64gbp
3,689.41gbp of rental income was received in 2018 (after management/ letting fees, repairs, communal fees and utilities).
The short term rental income has dropped 2502.74gbp this year, hence a very poor performance. The number of guests have increased, as have my prices. However, unforseen circumstances with the floor and electricity meter skewed my return.
P2P Lending
No additional cash contributions were deployed into the Mintos fund this quarter.
The Mintos account has increased 323.35 Euros this quarter.
The Net Annual Return has decreased by 0.08%.
Compared to 2017, the Mintos account made a capital gain of 1721.26e in 2018 and the net annual return has decreased by 0.07%.
Next year, I shall wind down my peer to peer lending. I’ve had a great run, but I want to simplify my FIRE fund going forward. Watch how long it takes me to exit…
For more information on Mintos and Peer to Peer Lending, click here.
Crowdinvesting
The full 1000 Euros that was deployed into the
Spread evenly at 100 euros per investment (9 are currently active).
Compared to 2017, the
For more information on Envestio and Crowdinvesting, click here.
SIPP (Pension)
There’s been a loss of 9.21% re the SIPP this quarter.
I still had the Vanguard Lifestrategy 60/40 this time last year, so I won’t compare gala apples to golden delicious. However, since switching to the Vanguard Lifestrategy 80/20 in Q2 2018, I incurred my biggest loss this quarter, which is a loss of 9.21%.
State Pension
After much deliberation, I decided to top up my state pension earlier this year. I already had 16 years accumulated, much to my surprise. Thank goodness for those long days behind the deli and till in Spar and all those other part-time jobs.
16 years is estimated to provide 85.22gbp per week/ 4,431.44gbp per annum. However, after talking to the state pension department, I managed to top up my missing 7 years (with the new rules, you can top up missing years by more than 6 years).
They were class III contributions for me. But, if you’re a sole trader or PAYE then you’ll only need to pay class II contributions.
So, this missing 7 years equates to 4,618gbp of missed payments. I didn’t have to pay it all at once. However, to lock in the low costs I
Thus 23 years of state pension contributions is estimated to provide 114.62gbp per week/ 5960gbp per annum (index linked) for my State Pension (according to my official new State Pension Forecast). For me, this is a great deal. That’s if the rules don’t change.
To collect 5960gbp in annual payments, I would need a fund of around 150K (based on the 4% rule).
Takeaway
Dividends = 5652.20gbp
Rental Income = 3689.41gbp
ISA/ Scottish Mortgage Trust = 1061gbp (using the 3.5% rule)
Peer 2 Peer Lending (Mintos) = 1721.26e = 1547gbp
Total passive income for 2018 is 11,949.61gbp/ 13,305.36 Euros
This is an increase of 2,358.84gbp/ 2,626.59 Euros from last year and the first year I’ve broken the 5 figure passive income barrier
Note: This doesn’t include the SIPP/Pension (can legally withdraw when I’m 58+). Nor, the state pension (can legally withdraw when I’m 68+).
