It always brings a smile on my face to hear about stock market forecasts. Often it sounds like a doomsday scenario: the market is going to crash due to the trade conflict with China. Interest hikes are a real threat for your portfolio. Now it’s the best time to shift from stocks into bonds. These are just a few examples.
The Art of knowing is knowing what to ignore (Rumi)
It’s all noise. In times of increasing volatility, it’s important to focus on the essential and just ignore the rest. Firstly, the long-term trend of the equity markets is always showing upward. Secondly, the dividends are steady and most of the time not affected by Mr. Markets mood. Everything else is a distraction.
That being said, it’s about time to update my dividend income of the past month. In November 2018, five companies have distributed dividend payments:
- AT&T (T): €19.55
- General Mills (GIS): €11.50
- Omega Healthcare Investors (OHI): €22.09
- Texas Instruments (TXN): €9.01
- Starbucks (SBUX): €9.41
All in All, November’s dividend income came in at €71.56 ($81.22). That is a 42% increase compared to November 2017. I’m very happy with this development. The YTD picture looks as follows:
|January||€ 25.26||€ 9.78||+158%|
|February||€ 55.35||€ 17.92||+209%|
|March||€ 107.33||€ 100.05||+7%|
|April||€ 84.92||€ 66.47||+28%|
|May||€ 177.26||€ 108.73||+63%|
|June||€ 103.13||€ 70.66||+46%|
|July||€ 50.96||€ 24.99||+104%|
|August||€ 190.84||€ 43.00||+344%|
|September||€ 125.87||€ 95.43||+32%|
|October||€ 54.34||€ 23.83||+128%|
|November||€ 71.56||€ 50.49||+42%|
|December||€ 116.98||€ 88.58||+32%|
|Total||€ 1,163.80||€ 699.93||+66%|
The accumulated yearly payments amount to €1,046.82 ($1,188.14). It’s really nice to see the annual income crossing the four-digit figure for the first time. Indeed watching dividends grow month by month, year by year, helps a lot to ignore the noise around us. Here is another chart that visualizes the YTD income compared to the previous year:
Recently I sold out my position in OHI. That means November’s dividend is the last quarterly payment that I’ve collected for the time being. The main reason behind selling this REIT, was my concern about its dividend safety. SSD has lowered the dividend safety score of OHI in 2018. The new SSD score is 40. On a 100-point scale it says that the dividend is unsafe, with an increased risk of being cut. In addition the share price has appreciated nicely during the past months. Overall, I felt it was a good opportunity to re-allocate and send the funds to some faster growing dividend stocks. But it will be challenging to compensate the income of this high-yielder, no doubt about it. In the end we don’t know what the future holds. Selling OHI might turn out to be a wrong decision – who knows. Hindsight is always easier than foresight.
I hope you all had a great November. Let me know about your progress.