How did your divis do between 2020-2022?

[Gilgongo]

I've only been totting up dividends received in my portfolio since Jan 2020, but I'd be curious to see what effect covid had on them since then.

I think (although my maths may be wrong because I'm not retired and still buying, re-investing and did some re-balancing) that the divis I received in 2020 were about 30% less than in 2021 (and interestingly were only slightly higher in 2022).

I see this article says they expected as much as a 50% reduction:

https://www.investec.com/en_gb/wealth/o ... dends.html

What's been the experience of anyone else who might be income investing?

G

[kempiejon]

I've been keeping rolling 12 months of dividend income for years, but I don't have the details to hand, however if I remember correctly income fell around 40% and has more than recovered to pre covid levels.

[Dod101]

Difficult I imagine to get accurate numbers because many people will still be adding new funds. I have added no new money for some years.

2021 dividends were 11.7% up on 2020 and 2022 dividends were up 8.8% on 2021. Between 2020 and 2022, dividends were up 21.6%. I tweak the portfolio occasionally but I do not do so specifically to increase the dividend and do not hold for instance HFEL, which I would if dividend was my sole aim. My portfolio leans towards an income portfolio but I hold some growth shares as well.

The 2021 figure was almost back to the 2019 (that is pre Covid) level so it made a quick recovery.

Dod

[xxd09]

Never could see the difference between relying on dividend income and total returns
They both come from the same pot so in fact should move in sync
Obviously didends are under an individual companies control where as total return is set by the stockmarket so some differences could appear over the short term but all will even up sooner rather than later
As the stockmarket actually sets the pace I long ago opted for total return and used bonds and cash to cover stockmarket down periods
Aged 76 -23 years retired-worked so far
xxd09

[mickeypops]

I run an Investment Trust income portfolio, comprising 20 trusts across various markets and sectors. This has helped to support our retirement since mid-2018. The income quoted below is pro rata to a starting capital value of £100,000. There's more details in the Portfolio management and review board. I believe that ITs are an excellent vehicle for retirement income and, despite substantial capital value ups and downs, the income has been delivered remarkably consistently.

Inv Trust Income Port. Income Year From Start
Start (31.07.2018) (fcst) £5,677
Year 1 (to 31.07.2019 £5,743 1.16% 1.16%
Year 2 (to 31.07.2020) £5,781 0.66% 1.83%
Year 3 (to 31.07.2021) £5,802 0.37% 2.21%
Year 4 (to 31.07.2022) £6,011 3.60% 5.89%

[Dod101]

Never could see the difference between relying on dividend income and total returns
They both come from the same pot so in fact should move in sync
Obviously didends are under an individual companies control where as total return is set by the stockmarket so some differences could appear over the short term but all will even up sooner rather than later
As the stockmarket actually sets the pace I long ago opted for total return and used bonds and cash to cover stockmarket down periods
Aged 76 -23 years retired-worked so far
xxd09

I understand what you mean and yet......I live off my dividends so I am not so much interested in total return, rather in dividends that appear in my bank account. Allows me to have access to cash without having to do anything else

Dod

[mickeypops]

Never could see the difference between relying on dividend income and total returns
They both come from the same pot so in fact should move in sync
Obviously didends are under an individual companies control where as total return is set by the stockmarket so some differences could appear over the short term but all will even up sooner rather than later
As the stockmarket actually sets the pace I long ago opted for total return and used bonds and cash to cover stockmarket down periods
Aged 76 -23 years retired-worked so far
xxd09

I understand what you mean and yet......I live off my dividends so I am not so much interested in total return, rather in dividends that appear in my bank account. Allows me to have access to cash without having to do anything else

Dod

Precisely.

[monabri]

My income per unit figures below. year ending 2020 was pretty poor.



Approx a 26% drop in dividends in THAT year (5.48 to 4.04 £/unit) so roughly in line with your "about 30%". I did add more funds during that period hoping to buy with a view to recovery.

[Arborbridge]

Changes in investment income in total:-

2020 base amount 2021 +16.7% on 2020 2022 +9.2% on 2021

This is income from HYP, ITs and OEICS. Some of this income is from reinvestment as I do not draw out all my income.

Arb.

[DelianLeague]

Hello,

I posted my Dividends (in monetary value) for each year going back to 2008 on the HYP Practical section for anyone that are interested.

Sorry but I don't know how to link to it.

Regards, D.L.

[MDW1954]

Hello,

I posted my Dividends (in monetary value) for each year going back to 2008 on the HYP Practical section for anyone that are interested.

Sorry but I don't know how to link to it.

Regards, D.L.

Here's the link:

https://www.lemonfool.co.uk/viewtopic.php?p=558758#p558758

MDW1954 (moderator)

[tjh290633]

Here are my dividends per income unit from 2000:

Year-end   div/unit (p)
Dec-00            12.06
Dec-01            13.16
Dec-02            11.49
Dec-03            14.65
Dec-04            12.78
Dec-05            16.84
Dec-06            19.03
Dec-07            23.62
Dec-08            21.83
Dec-09            11.28
Dec-10            14.78
Dec-11            17.13
Dec-12            19.85
Dec-13            22.55
Dec-14            25.92
Dec-15            22.96
Dec-16            24.28
Dec-17            30.75
Dec-18            28.82
Dec-19            31.63
Dec-20            20.28
Dec-21            29.90
Dec-22            37.81

You can see the effects in recent years. Note that these figures include special dividends.

TJH

[Alaric]

What's been the experience of anyone else who might be income investing?

You can look at the history of income paying ETFs, OEICs and ITs.

Generally speaking the income from ETFs and OEICs plumetted because the Directors of the Companies they held suspended and cancelled dividends from about March 2020 onwards, They later recovered as Companies reinstated dividends.

ITs on the other hand were able to maintain their dividends, probably by asset sales or borrowings.

Those with income generating direct holdings may have seen smaller reductions in dividends if they held Companies that had policies of dividend maintenance.

[ignatius]

Here are my dividends per income unit from 2000:

Year-end   div/unit (p)
Dec-00            12.06
Dec-01            13.16
Dec-02            11.49
Dec-03            14.65
Dec-04            12.78
Dec-05            16.84
Dec-06            19.03
Dec-07            23.62
Dec-08            21.83
Dec-09            11.28
Dec-10            14.78
Dec-11            17.13
Dec-12            19.85
Dec-13            22.55
Dec-14            25.92
Dec-15            22.96
Dec-16            24.28
Dec-17            30.75
Dec-18            28.82
Dec-19            31.63
Dec-20            20.28
Dec-21            29.90
Dec-22            37.81

You can see the effects in recent years. Note that these figures include special dividends.

TJH

37! Terry! That's obscene! I suppose you've reported this already, but this is the first time I've seen it. Amazing. Tremendously well done, and a cracking benchmark.

[Gerry557]

Year end income figures

2022. +30.00%
2021. +8.55%
2020. - 18.49%
2019. +3.76%

To put into context these are not unitised figures and don't take into account sales or additional funding added.

I expect that I added more funds than were removed and also reinvested the majority of dividends.

I remember adding more lloyds as they were moving to quarterly dividends before they were forced to cut. I think shell cut their divi around that time and the oil price tanked. I added a few tranch but the first was a normal balance of the PF rather than the later bargain buying as it turned out.

Reits were other cutters that I added hoping it would be just temporary and until recently we're doing much better post pandemic but dividends have improved.
I remember calculating the drop in expected dividends in 2020 well into 2021.
I'm not doing that this year. Most have recovered but there are some with further improvement such as Lloyd's.

I added mainly in the second half of 2021 as there were x4 down months in the first six but only one in the last six. 2022 I was mainly adding Reits as prices fell.

2023 should see relative rises in the first part of the year then slow in the second especially as I've not bought much this year, oops I've done x4 buys and a sale but expect this to be an increase again as the previous buys and dividend do there thing.

The 2020 drop would have probably been bigger if I hadn't added to the PF which has flattered the returns.

[tjh290633]

37! Terry! That's obscene! I suppose you've reported this already, but this is the first time I've seen it. Amazing. Tremendously well done, and a cracking benchmark.

What I did not show was the unit values. This shows the yield as well, going back to 1987:

Year-end   Unit Price £   div/unit (p)   Yield
Dec-87             0.88           2.24   2.55% Part year
Dec-88             1.00           1.86   1.86%
Dec-89             1.28           4.83   3.77%
Dec-90             1.25           4.69   3.74%
Dec-91             1.37           7.31   5.35%
Dec-92             1.54           7.09   4.61%
Dec-93             1.87           6.68   3.56%
Dec-94             1.72           6.96   4.05%
Dec-95             2.01           7.65   3.80%
Dec-96             2.16           8.47   3.92%
Dec-97             2.97           9.38   3.15%
Dec-98             3.51           8.55   2.44%
Dec-99             3.95          10.26   2.60%
Dec-00             3.72          12.06   3.24%
Dec-01             3.43          13.16   3.84%
Dec-02             2.68          11.49   4.28%
Dec-03             3.09          14.65   4.74%
Dec-04             3.52          12.78   3.63%
Dec-05             4.27          16.84   3.94%
Dec-06             5.16          19.03   3.69%
Dec-07             4.83          23.62   4.89%
Dec-08             2.79          21.83   7.83%
Dec-09             3.71          11.28   3.04%
Dec-10             4.06          14.78   3.64%
Dec-11             4.30          17.13   3.98%
Dec-12             4.73          19.85   4.20%
Dec-13             5.61          22.55   4.02%
Dec-14             5.55          25.92   4.67%
Dec-15             5.61          22.96   4.09%
Dec-16             6.12          24.28   3.97%
Dec-17             6.37          30.75   4.83%
Dec-18             5.47          28.82   5.27%
Dec-19             6.20          31.63   5.10%
Dec-20             5.57          20.28   3.64%
Dec-21             6.40          29.90   4.67%
Dec-22             6.12          37.81   6.18%

TJH

[xxd09]

As a retiree (76) using Total Return ie selling fund units -equities or bands or both as required to top up daily expenses cash account I applaud your efforts but surely the size of the portfolio is the relevant factor
I suppose all of us could live off the dividends if the pot was big enough and/or withdrawals were low enough
Most retirees may not be in this happy position and rely on their funds being in Accumulation units format as they struggle to save enough for retirement
Well done- you seem to have managed it?
xxd0

[tjh290633]

As a retiree (76) using Total Return ie selling fund units -equities or bands or both as required to top up daily expenses cash account I applaud your efforts but surely the size of the portfolio is the relevant factor
I suppose all of us could live off the dividends if the pot was big enough and/or withdrawals were low enough
Most retirees may not be in this happy position and rely on their funds being in Accumulation units format as they struggle to save enough for retirement
Well done- you seem to have managed it?
xxd0

I assume that your post is directed at me. My portfolio is a High Yield Portfolio made up of individual shares. I calculate its value and income both as income units and accumulation units. In practice I draw some of the income for special events, like having my roof repaired or going on a cruise. My occupational and state pensions have provided more than enough income for living expenses since I retired almost 25 years ago. I have a few investments in funds, but they are only income un its. I draw the income from two of them. That represents about 10% of my pension income. The rate of return on those since purchase (in 1995 and 1973) has been 7.5% and 8.3% respectively, currently yielding 4% and 5.5%. On the other hand, my HYP has returned 9.6% since inception in 1987 and has a current yield of 5%.

Had I been able to put as much into my HYP as I did into my pensions, I am certain that it would be providing more than my pensions do. I am surprised by the suggestion that people who are already retired are still struggling to save for retirement. The time for doing that was while they were working.

TJH

[xxd09]

Thanks for that -mistake in my phrasing -should have been “struggle to keep funding their on going retirement expenses “ -apologies
I would suggest that for a lot of retirees their occupational and state pensions are tight at covering their daily living expenses never mind holidays,new car or replacing a roof
Well done not being in this position
Personally my wife and I,s State and Occupational Pension cover 40+ % of our living expenses-a portfolio of equities and bonds do the rest
Seemed to have worked so far and portfolio is much greater than at start of retirement
xxd09

[vand]

Looks like the FTSE 100 has is set to pay out record dividends in 2023. Dividend cover is considerably better, too, suggesting that we can keep going higher.

https://www.ajbell.co.uk/sites/default/ ... hboard.pdf