December Dividend Update

Image courtesy of Gualberto 107 / FreeDigitalPhotos.net

Image courtesy of Gualberto 107 / FreeDigitalPhotos.net

I have now received all the dividends for December, and can therefore report on the income received. Once again the total amount of dividends paid have increased, and although there has been a reduction in the amount paid in my SIPP, this has been more than offset by a significant increase in the amount paid in my ISA.

The drop in my SIPP is due to the 75% dividend cut by Tesco due to their “annus horribilis”, and as I noted in a post earlier this year, I should have sold the shares some time ago, but as I didn’t I am now holding onto them to take advantage of the recovery that I believe is going to happen.

The performance for November was therefore a bit mixed. The amount of dividends paid into my SIPP was £346.71 which is a reduction of 7.59% from the £375.18 paid last year. By contrast, I received an increase of £100.94 into my ISA, an increase of 252.92%, which means the dividend income for this December was £140.85.

COMPANYSIPPISATOTAL
BAE Systemsœ£123.00£œ57.40œ£180.40
Barclaysϣ21.54ϣ0.00ϣ21.54
BPϣ44.64ϣ0.00ϣ44.64
Royal Dutch Shellϣ84.45ϣ49.08ϣ133.53
Tescoϣ34.80ϣ5.68ϣ40.48
Unileverϣ38.28ϣ28.60ϣ66.88
TOTALSœ£346.71œ£140.76£œ487.47

All of the companies paying dividends in December increased or maintained their dividends (except Tesco), but the actual sterling amount received from Unilever was slightly lower due to exchange rate movement.

I also received an increased amount of income due to the re-investment of dividends in BAE Systems and Unilever in my SIPP, and due to new monies deposited into my ISA, which meant new payments from BAE Systems and Royal Dutch Shell, along with an increase from Unilever from the top up to my shareholding earlier in the year.

The increase this month, plus the many increases over the year have led to a jump in the total income for the whole year, and I will post more on the full year performance around New Year’s Day.

 

8 thoughts on “December Dividend Update

    1. Financial Independence UK Post author

      Hi Jason

      Thanks for your comment, it was another successful month, as I am sure yours was (look forward to your post on December income).

      I think 2015 will be a good year for anyone who keeps adding money to their FI pot of cash, and investing it in high quality companies who keep paying dividends.

      Hope everything is good on your side of the Atlantic, and looking forward to following your progress.

      Best Wishes
      FI UK

      Reply
  1. Huw

    Hi FIUK,

    Congrat’s on another YOY increase!

    The table you usually use isn’t showing in the post. I’m not sure why?

    We share some of the same investments, so it’s nice to see you succeed with these companies because I benefit too. The same goes for Tesco though unfortunately!

    Merry Christmas! Here’s to another successful 2015!

    Huw

    Reply
    1. Financial Independence UK Post author

      Hi Huw

      Thanks for pointing out the problem with the table not showing, should be fixed now.

      I am with you on supporting each others success as we do share a few of the same investments (including Tesco, although I do believe they will recover some if not all of their previous success – I think they need to really grow online with Click and Collect, as people will shop there when they go to collect their online orders, much easier than waiting for couriers.)

      Hope you had a great Christmas, and that you FI bloggers gathering goes well.

      Best Wishes
      FI UK

      Reply
  2. Cerridwen

    Good going FI UK. I have all my dividends reinvested automatically (from the funds and trusts that pay them) so I don’t tend to account what’s happening on this front.

    As we approach retirement I intend to move over to an income producing, rather than growth based, portfolio (once I’ve worked out how best to do this 🙂 so I’m always very interested to see how dividends are playing out for other people. Happy Christmas.

    Reply
    1. Financial Independence UK Post author

      Hi Cerridwen

      Thanks for your kind comment, they are always appreciated.

      Having read your blog from the beginning, I am sure you will work out how to best produce income from your investments in a way that best suits you, all I would recommend is to try and make sure you create a source of income that grows at least in line with cost of living so that your living standards are maintained. This is why I like investing for dividends as the amount does generally increase YOY.

      Happy and Prosperous New Year
      FI UK

      Reply
    1. Financial Independence UK Post author

      Hi Cazadividendos

      Welcome from Spain, and thank you for dropping by and commenting.

      As I said in my reply to Huw, I think they will recover, but it’s not certain and I am not convinced I would buy into UK supermarkets at present, the Warren Buffet moat they used to have is a bit low at the moment,and the whole market may be going through a seismic shift, or then again the Aldi / Lidl effect may disappear. I have never shopped in either, mainly because everyone I talk to says you can’t get everything you need there, and I don’t exactly enjoy the time I spend shopping in one store, so really don’t want to increase the time by having to shop in two or more.

      Not sure if that answers your question, but I think it is a question that you really need to answer yourself as it could go either way.

      Best Wishes
      FI UK

      Reply

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