Dividend Income 2023

[Dod101]

I remember writing something similar last year but my income to date for this year has just exceeded the entire income for last year. I have added a modest amount in capital to the portfolio but nothing like the 8% or so that dividend income has risen to date. I need to ignore this portfolio more often.

Dod

[yieldhog]

That sounds like a better result than I'm likely to achieve. After all dividends up to end November I see that six of the monthly totals were lower than last year while five were higher. I'm just waiting for IUKD and IAPD to report for December to give me the full picture. Overall it looks as though the year's total will be slightly ahead of last year and new record high.
Maybe I should leave my portfolio alone next year and hope I can.

Y

[monabri]

Could be worse...it's not HYP1.

[daveh]

My declared income for 23 has been above last years ( not including specials with share consolidation) for about a month now, and I still have a few dividends for December to be declared. I think I will be about 5-8% ahead by years end, which will be more than the % of new money I've added to the portfolio this year.

[Arborbridge]

Instead of some vague handwaving - saying the increase is more than the fresh capital put in - people could give a definitive answer if only they unitised

Then we could all compare how much bang for the buck we were getting and compare on an equal basis. If only.

Arb.

PS anyhow, congratulations to Dod - I don't know how he does it. I've noticed that most months my income hasn't advanced and is sometimes less than last year, both absolutely and in unitised terms. However, I'm not drawing any line under it until the end of the year when the fat lady sings.

PPS - to the end of the 3rd quarter my total real income edged 3% higher.

[daveh]

Instead of some vague handwaving - saying the increase is more than the fresh capital put in - people could give a definitive answer if only they unitised

Then we could all compare how much bang for the buck we were getting and compare on an equal basis. If only.

Arb.

PS anyhow, congratulations to Dod - I don't know how he does it. I've noticed that most months my income hasn't advanced and is sometimes less than last year, both absolutely and in unitised terms. However, I'm not drawing any line under it until the end of the year when the fat lady sings.

PPS - to the end of the 3rd quarter my total real income edged 3% higher.

I do (unitise) and at the end of the year I'll report the dividend per unit for both income and accumulation units, but you will have to wait until January 24 for my annual report.

[Itsallaguess]

congratulations to Dod - I don't know how he does it.

I think we do though Arb, don't we?

I personally don't think that it's any coincidence that Dod continues to see satisfactory results with his income-investing whilst at the same time being a long-standing advocate of not chasing yield for as long as I've been reading his posts, and along with his regular disapproval of 'expensively bought income', I think we can see exactly how he does it, or at the very least, we can clearly see how he doesn't do it...

Cheers,

Itsallaguess

[Arborbridge]

congratulations to Dod - I don't know how he does it.

I think we do though Arb, don't we?

I personally don't think that it's any coincidence that Dod continues to see satisfactory results with his income-investing whilst at the same time being a long-standing advocate of not chasing yield for as long as I've been reading his posts, and along with his regular disapproval of 'expensively bought income', I think we can see exactly how he does it, or at the very least, we can clearly see how he doesn't do it...

Cheers,

Itsallaguess

It would be nice to confirm his yield profile by posting his current portfolio, if he would do so.

[BullDog]

congratulations to Dod - I don't know how he does it.

I think we do though Arb, don't we?

I personally don't think that it's any coincidence that Dod continues to see satisfactory results with his income-investing whilst at the same time being a long-standing advocate of not chasing yield for as long as I've been reading his posts, and along with his regular disapproval of 'expensively bought income', I think we can see exactly how he does it, or at the very least, we can clearly see how he doesn't do it...

Cheers,

Itsallaguess

Yes, I think that's a very important point. My own experience certainly reflects that over reaching for the highest yields seldom works out well overall.

I do hold LGEN and MNG. I think the high yields there are perhaps a function of low share price rather than anything more fundamentally wrong at the business. But I'm probably wrong about that. I certainly keep my eye on them.

Outside of those two shares that appear OK for now, buying high yield has usually been at the cost of capital for me. I think that's unacceptable beyond the short term.

[Arborbridge]

I think we do though Arb, don't we?

I personally don't think that it's any coincidence that Dod continues to see satisfactory results with his income-investing whilst at the same time being a long-standing advocate of not chasing yield for as long as I've been reading his posts, and along with his regular disapproval of 'expensively bought income', I think we can see exactly how he does it, or at the very least, we can clearly see how he doesn't do it...

Cheers,

Itsallaguess

Yes, I think that's a very important point. My own experience certainly reflects that over reaching for the highest yields seldom works out well overall.

I do hold LGEN and MNG. I think the high yields there are perhaps a function of low share price rather than anything more fundamentally wrong at the business. But I'm probably wrong about that. I certainly keep my eye on them.

Outside of those two shares that appear OK for now, buying high yield has usually been at the cost of capital for me. I think that's unacceptable beyond the short term.

I took my remark to be about Dod's income, not his capital. "Expensively bought" income doesn't come into that consideration - rather more what the capital hs done. But yes, it could be that a "colateral" is that Dod's lower yielding companies do have income which holds up well in bad times. Not that LGEN is particularly low - so it's more a question of knowing how to pick the right high! - one that sustains.

[Dod101]

My portfolio was posted not so long ago and there is no secret to it. I certainly do not chase income and make few changes to my portfolio. I have no cyclicals like miners, no supermarkets nor house builders except for M J Gleason. As I recorded in January, it was double or quits time for Gleason and I chose to double on it. That has paid off. My one innovation this year has been to buy into Greencoat UK during its recent lows. It’s finances were just too good to miss over the last few months and that has been borne out in its recent announcement of a share buyback; unheard of in the sector. I am ahead every month with income up this year except for October and am already ahead in November.
I am sorry but I have never unitised and have no intention of starting now.
Capital is not looking great though although it is up a bit recently.

Dod

[yieldhog]

My portfolio was posted not so long ago and there is no secret to it. I certainly do not chase income and make few changes to my portfolio. I have no cyclicals like miners, no supermarkets nor house builders except for M J Gleason. As I recorded in January, it was double or quits time for Gleason and I chose to double on it. That has paid off. My one innovation this year has been to buy into Greencoat UK during its recent lows. It’s finances were just too good to miss over the last few months and that has been borne out in its recent announcement of a share buyback; unheard of in the sector. I am ahead every month with income up this year except for October and am already ahead in November.
I am sorry but I have never unitised and have no intention of starting now.
Capital is not looking great though although it is up a bit recently.

Dod

Well said Dod. I too get irritated by constant gripers about yield chasers and calls to unitise portfolios. We all have our own objectives and unique set of circumstances that dictates how we organize our investments. My own SIPP has reached another record high in terms of dividend yield and I have recorded some healthy net realised capital gains. If this was an example of "how not to do it" then I make no apology for continuing to do things my way. My 2023 SIPP portfolio was posted on TLF back in January or thereabouts and my 2024 portfolio will be posted soon.
Almost every one of my investments posted increased dividends this year but the overall increase in dividend yield will not be quite as high as the one you mentioned in your earlier post .

All the best
Y

[Arborbridge]

My portfolio was posted not so long ago and there is no secret to it. I certainly do not chase income and make few changes to my portfolio. I have no cyclicals like miners, no supermarkets nor house builders except for M J Gleason. As I recorded in January, it was double or quits time for Gleason and I chose to double on it. That has paid off. My one innovation this year has been to buy into Greencoat UK during its recent lows. It’s finances were just too good to miss over the last few months and that has been borne out in its recent announcement of a share buyback; unheard of in the sector. I am ahead every month with income up this year except for October and am already ahead in November.
I am sorry but I have never unitised and have no intention of starting now.
Capital is not looking great though although it is up a bit recently.

Dod

Can you post a link, Dod? Or cut and paste your table?

[Arborbridge]

My portfolio was posted not so long ago and there is no secret to it. I certainly do not chase income and make few changes to my portfolio. I have no cyclicals like miners, no supermarkets nor house builders except for M J Gleason. As I recorded in January, it was double or quits time for Gleason and I chose to double on it. That has paid off. My one innovation this year has been to buy into Greencoat UK during its recent lows. It’s finances were just too good to miss over the last few months and that has been borne out in its recent announcement of a share buyback; unheard of in the sector. I am ahead every month with income up this year except for October and am already ahead in November.
I am sorry but I have never unitised and have no intention of starting now.
Capital is not looking great though although it is up a bit recently.

Dod

Well said Dod. I too get irritated by constant gripers about yield chasers and calls to unitise portfolios. We all have our own objectives and unique set of circumstances that dictates how we organize our investments. My own SIPP has reached another record high in terms of dividend yield and I have recorded some healthy net realised capital gains. If this was an example of "how not to do it" then I make no apology for continuing to do things my way. My 2023 SIPP portfolio was posted on TLF back in January or thereabouts and my 2024 portfolio will be posted soon.
Almost every one of my investments posted increased dividends this year but the overall increase in dividend yield will not be quite as high as the one you mentioned in your earlier post .

All the best
Y

Dod, whom you praise, might be considered one of those who gripe about yield chasing (though I would not use the word "gripe" myself) and I am one who points out that I unitise and the advantages of doing so - though I do understand many people aren't at all bothered. That's fine - as I have said previously: each to his own. But that will not stop my pointing out what I see as a generally good thing. I saw it, and still see it, as a way to show whether my portfolio is growing organically as distinct from just my act of adding new capital, and just as importantly to compare my results with those of others - particularly ITs or OEICS. Why would anyone agree to the conversation being closed down in that way?

And I'm curious that a self-named "yield hog" writes a post supporting someone who writes of low or medium yield as being a Good Thing - particularly when boasting that your yield is at a record high which has come about (I am assuming) just to recent stock prices falling. Yes, there are some big yields around, enough to satisfy any yield hog. But that isn't consistent with "with healthy capital gains": quite the opposite.

All in all, your post is a confusing one, point apparently in two directions at once.

Arb.

[Dod101]

Arb seems uncharacteristically grumpy this morning. Note also that I have said nothing about yield. I certainly hold what are currently highyielders such as L & G, Phoenix Holdings and Chesnara and like most, am well under water with the latter two. The resumption of quarterly dividends from HSBC has also helped. I have held it since about 1992 or so and it has always been a strong conservative bank and is the only bank I am ever likely to hold.

Dod

[monabri]

My portfolio was posted not so long ago and there is no secret to it. I certainly do not chase income and make few changes to my portfolio. I have no cyclicals like miners, no supermarkets nor house builders except for M J Gleason. As I recorded in January, it was double or quits time for Gleason and I chose to double on it. That has paid off. My one innovation this year has been to buy into Greencoat UK during its recent lows. It’s finances were just too good to miss over the last few months and that has been borne out in its recent announcement of a share buyback; unheard of in the sector. I am ahead every month with income up this year except for October and am already ahead in November.
I am sorry but I have never unitised and have no intention of starting now.
Capital is not looking great though although it is up a bit recently.

Dod

Can you post a link, Dod? Or cut and paste your table?

March 2023 plus UKW as a new addition.

viewtopic.php?p=579199#p579199

[Itsallaguess]

I remember writing something similar last year but my income to date for this year has just exceeded the entire income for last year.

I have added a modest amount in capital to the portfolio but nothing like the 8% or so that dividend income has risen to date.

I've just checked calendar-year 2023 dividends against 2022 income for the same number of shares in both years, to enable a fair comparison, and this year's underlying dividend-income is up by a shade over 4.7%.

In reality it's up by much more than that, taking into account new ISA allowance purchases and fairly regular top-ups throughout this year, but on an underlying basis, I'm happy with that 4.7% rise.

I need to ignore this portfolio more often.

I think there's a lot to be said for just leaving investments alone and allowing them to do their work, although I've got to say that next time you get to ignore yours Dod, I hope it's under better circumstances for you.

All the best,

Itsallaguess

[Dod101]

Can you post a link, Dod? Or cut and paste your table?

March 2023 plus UKW as a new addition.

viewtopic.php?p=579199#p579199

Yes I sold Treatt and bought Greencoat, then added to that holding with some new money until I now have about
2% of my entire portfolio in Greencoat. Otherwise the portfolio remains the same.

Dod

[daveh]

Instead of some vague handwaving - saying the increase is more than the fresh capital put in - people could give a definitive answer if only they unitised

Then we could all compare how much bang for the buck we were getting and compare on an equal basis. If only.

Arb.

PS anyhow, congratulations to Dod - I don't know how he does it. I've noticed that most months my income hasn't advanced and is sometimes less than last year, both absolutely and in unitised terms. However, I'm not drawing any line under it until the end of the year when the fat lady sings.

PPS - to the end of the 3rd quarter my total real income edged 3% higher.

I do (unitise) and at the end of the year I'll report the dividend per unit for both income and accumulation units, but you will have to wait until January 24 for my annual report.

And just for Arb I've done a quick calculation.

Last year the dividend per accumulation unit was 20.81p and per income unit was 8.5p. Now including all declared dividends so far for the year dividend per accumulation unit has increased to 21.33p but dividend per income unit is down slightly at 8.3p. I expect that the end of year will be very similar as I have only a small number of ETFs remaining to declare a dividend paid in December.

Note that I don't count specials that come with a share consolidation as dividends I treat them as capital returns, but it doesn't affect these calculations as there weren't any specials with a consolidation this year or last year.

[Itsallaguess]

March 2023 plus UKW as a new addition.

https://www.lemonfool.co.uk/viewtopic.php?p=579199#p579199

Yes I sold Treatt and bought Greencoat, then added to that holding with some new money until I now have about 2% of my entire portfolio in Greencoat.

Otherwise the portfolio remains the same.

For completeness, here's your end of March 2023 portfolio listing Dod, before you removed Treatt and added in Greencoat, but with some sector information added in and the single-share holdings split out from your Investment Trusts -

Shares                     Sector                                          Capital  Dividend  Yield
Legal & General            Asset Management                                3.84%    6.86%     8.15%
Schroders                  Asset Management                                3.04%    3.72%     5.59%
Toronto Dominion Bank      Banks - Canadian                                2.46%    2.03%     3.77%
Bank of Montreal           Banks - Canadian                                1.60%    1.10%     3.13%
HSBC Holdings              Banks - Diversified                             4.47%    3.98%     4.06%
Diageo                     Beverages - Wineries & Distilleries             3.27%    1.52%     2.12%
Treatt                     Chemicals                                       0.79%    0.07%     0.42%
Astrazeneca                Drug Manufacturers - General                    3.72%    2.13%     2.62%
GSK                        Drug Manufacturers - General                    2.42%    2.51%     4.73%
Unilever                   Household & Personal Products                   4.56%    4.41%     4.42%
Chesnara                   Insurance - Life                                2.87%    5.23%     8.32%
Phoenix Group              Insurance - Life                                2.55%    5.04%     9.04%
Admiral                    Insurance - Property & Casualty                 2.48%    5.71%     10.49%
Shell                      Oil & Gas Integrated                            4.15%    3.68%     4.06%
Henry Boot                 Real Estate - Diversified                       1.22%    0.73%     2.73%
Primary Health Properties  REIT - Healthcare Facilities                    2.47%    3.51%     6.50%
Segro                      REIT - Industrial                               2.49%    1.89%     3.47%
M J Gleeson                Residential Construction                        1.90%    1.29%     3.11%
BAT                        Tobacco                                         3.16%    5.23%     7.57%
Imperial Brands            Tobacco                                         2.11%    3.44%     7.45%
SSE                        Utilities - Diversified                         3.41%    3.75%     5.02%
National Grid              Utilities - Regulated Electric                  3.69%    3.89%     4.81%
                                                                                              
Schroder Oriental Income   Investment Trust - Asia Pacific Equity Income   2.48%    2.39%     4.39%
Caledonia                  Investment Trust - Flexible Investment          3.64%    5.71%     7.16%
RIT Capital Partners       Investment Trust - Flexible Investment          2.20%    0.95%     1.98%
Alliance Trust             Investment Trust - Global                       4.57%    2.51%     2.51%
Scottish Mortgage IT       Investment Trust - Global                       3.38%    0.42%     0.57%
Murray International       Investment Trust - Global Equity Income         3.64%    3.32%     4.17%
Murray Income Trust        Investment Trust - Global Equity Income         3.08%    2.93%     4.34%
JP Morgan Global Growth    Investment Trust - Global Equity Income         2.77%    0.65%     1.06%
3i Infrastructure          Investment Trust - Infrastructure               3.43%    2.53%     3.36%
Finsbury Growth & Income   Investment Trust - UK Equity Income             2.96%    1.34%     2.06%
                                                                                              
Total Shares                                                               94.83%   94.47%    4.55%

Single-share sector information taken from here - https://www.fidelity.co.uk/shares/ftse-350/company-share-prices/?p=0&c=1000

Investment Trust sector information taken from here - https://www.theaic.co.uk/investment-company-screener

Cheers,

Itsallaguess