April Dividend Update

Image courtesy of Gualberto107 / FreeDigitalPhotos.net

Image courtesy of Gualberto107 / FreeDigitalPhotos.net

Although it is not quite the end of the month, I have received all the dividends that are due in April, and can therefore report on my dividend performance for the month.

I am delighted to report that the amount paid in April was £598.04, which is a great monthly income, and if my assessment of future dividends is correct, will be the first of four months this year where I earn more than £500 in the month.  the increase in the month was 29.77% from April last year which is an increase of £137.20 in actual cash terms.

The table below shows the breakdown of where the dividends were paid

COMPANYSIPPISATOTAL                  
£474.39£123.65£598.04
Glaxo£161.00£65.55£226.55
Diageo£21.50£0.00£21.50
Barclays£75.39£0.00£75.39
PHP£200.00£58.10£258.10
Thorpe FW£16.50£0.00£16.50

Some of the increase is due to two companies in my SIPP changing the month when the dividends were paid (but the months they have moves from will still show an increase compared to last year). The main increase without the month changes has come from my ISA, and this is due to the amount of money invested in the last twelve months, and the re-investment of dividends. In my SIPP the change in income is due to the dividend increases by all the companies paying out in April compared to last year. This “pay rise” has come without me having to work any extra hours, or improve my performance and shows the benefit of investing in shares instead of fixed income, as if I held bonds my income would have been no more than last year compared to the 6.85% increase in these companies dividend pay out.

I will therefore continue to invest my money in high quality dividend shares in order to not only provide an income stream, but for that income stream to increase most years (there will be some years when companies hold or cut their dividend, but if this is only one or two from a portfolio, I should still achieve an overall increase). This increase should protect me from inflation over the (hopefully) many years of Financial Independence.

6 thoughts on “April Dividend Update

  1. Dividend Drive

    What a month! A really nice year-on-year increase. I had a similar thing with Barclays’ dividend falling a month later than last year. I hold GSK, Barclays and Diageo.

    I am very interested in your other holdings which paid this month as they are both companies I have seriously looked at previously.

    When did you buy into PHP and Thorpe? Did you write anything up on your thoughts on them previously? Be fascinated to know more.

    Reply
    1. Financial Independence UK Post author

      Hi DD

      Interesting that you hold a lot of the same companies as me, suppose if we are looking for dividends it makes sense.

      I bought into PHP & Thorpe well before I began my blog (Thorpe on 2006 and PHP in 2011), I “found” them from the column that John Lee used to write in the FT, have made my money back in Thorpe and as their current dividend is lower than I like I have taken out my initial investment so they have cost me nothing, but don’t want to totally miss out on any future growth (they also pay special dividends every couple of years or so which boosts the income). When I looked out PHP I thought they were particularly attractive as their tenants rent are pretty much covered by the government (mainly doctors surgeries), and as a REIT pay out most of their profits as dividend (although recently dividend hasn’t been covered by profits).

      Hope that helps

      FIUK

      Reply
  2. Martin

    It is nice income for the month man! You are well on the way to retire early. And if Greece goes down, you can move there and retire almost now as it will be cheap and with 500 pounds you can live nice in there. I have a friend with a quite nice portfolio already built and up and he did exactly that. He is semiretired and has a wonderful life! That’s why I like DGI strategy. You do nothing, get your payment and live nice life.
    Good luck and hope you get to your FF soon!

    Reply
    1. Financial Independence UK Post author

      Hi Martin

      I was happy with my months income, and looking forward to more increases in the future.

      I like the DGI strategy also for the do nothing but still get paid each month, and with mine and Mrs FIUK’s pensions can draw some capital to bridge the gap until our income will exceed our expenditure when I am around 66. That’s when the benefits of dividends increasing by more than inflation can really kick in, as our standard of living can increase as we beholder rather than decrease like a lot of peoples.

      Best Wishes
      FIUK

      Reply
  3. Patrick

    Hi FI,

    I am just getting into the dividend game not happy with market rates at the moment. Who do you use for your stock ISA?

    Reply
    1. Financial Independence UK Post author

      Hi Patrick

      Dividend investing is a great way to go in my opinion, as I can generally see my income increasing even if the overall market isn’t.

      I currently use Barclays Stockbrokers for my ISA and SIPP, could get lower cost service, but costs to sell all my holdings and transfer would more than eat up several years of savings, so as I am happy with their service will continue to use.

      Best Wishes in your new journey
      FIUK

      Reply

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