July Dividend Update

 
ID-100188087July has been and gone, so I can now update my dividend performance for the month. Once again I have achieved an increase from the same month last year (£537.36 compared to £500.11 last year). Although the increase is nowhere near last months, 7.45% is still way above inflation, so if I was living off of my investment income (which is my ultimate goal) I would have increased my real income once more.

The increase in my SIPP is only 1.63% however, as Tesco did not increase their dividend this year (£349.73 vs £60.84), the increase in my ISA however was 43.08% (£100.46 vs £70.21), which is partly due to re-invested dividends and my increased holdings in Glaxo.

COMPANYSIPPISATOTAL
£436.90£100.46£537.36
Tesco£303.90£48.02£351.92
Glaxo£133.00£52.44£185.44

My increase in the SIPP is disappointing, but because I have shareholdings in several companies, the problems that Tesco are experiencing, which has meant their dividend was not increased, has been offset by increases elsewhere over the year to give me a reasonable increase overall so far. My SIPP dividend income from Jan to Jul this year is £2294.59 compared to £1770.64 for the same period last year, and this increase is just from re-investing dividends as no additional monies have been paid in this year.

As all my August dividends have been announced, I now know that I will actually break the £1,000 mark for dividends, but I will report the actual numbers in my next dividend update around the end of the month.

 

4 thoughts on “July Dividend Update

  1. weenie

    Pardon my ignorance but is there any difference between holding your shares in your SIPP or your ISA? Just wondered why you had the same shares in both?

    Reply
    1. Financial Independence UK Post author

      Hi Weenie

      Thanks for your comment, always nice to see someone is actually reading what I write.

      The difference between SIPP and ISA used to be that you could only draw out the money from your SIPP at a government approved rate, whereas you had total control over what you could do with the money in your ISA. Recent changes will also allow you to take your money from a SIPP when you choose.

      The remaining difference is that if you withdraw money from your SIPP you are taxed on it as income (except you are allowed to take 25% of you money tax free when you first start to take money out), withdrawls from your ISA are completely tax free.

      I had stopped paying into my SIPP before they changed the rules in order to allow me to choose how I used the money I had saved, but am reviewing if I should go back to paying into my SIPP as I get tax relief at 40% on payments into my SIPP, but will only save the income tax rate when I take money from my ISA (which will be 20 – 25% as I will only be withdrawing money from my SIPP and/or ISA be when I am retired).

      I am currently therefore treating my ISA as though I am “topping up” my SIPP, which is why all of the companies in my ISA are also in my SIPP (this will probably change soon as I am looking at new companies to invest in).

      As a note, I do periodically buy more shares in my SIPP, but this is purely as a result of re-investing dividends.

      Nice to see you posting about your journey as the people in the UK who post are few and far between.

      Thanks

      FI UK

      Reply
      1. weenie

        Thanks for the explanation, FI UK. With the recent change in SIPPs and the accessibility to funds, it might be worth you making the most of your 40% tax relief.

        I love to read about UK dividend investors such as yourself (and Financially Free at Forty) and have just started to get together my own little portfolio of shares to supplement my other investments.

        Reply
  2. DivHut

    Thanks for sharing your July dividend income with us. You have some pretty high yielding stocks in your portfolio and your income is outstanding. Do you plan on adding any more stocks to your portfolio or are you satisfied with your current diversification?

    Reply

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