My dividend income in January was a total of £540.64, which was made up of £381.45 from my SIPP and £159.19 from my ISA, this is an increase of £13.80 from January 2016. This is a disappointing 2.62% increase as Amec Foster Wheeler cut their dividend, but this is still more than inflation over this period, and it is possible that they will grow their dividend again as they start to benefit from the rise in the oil price, which is one of their key markets.
The details of dividends received in January are shown in the table below:
COMPANY SIPP ISA TOTAL £381.45 £159.19 £540.64 Amec Foster Wheeler £0.00 £18.28 £18.28 Glaxo £153.90 £59.28 £213.18 National Grid £227.55 £49.30 £276.85 Next £0.00 £32.33 £32.33
Whilst any dividend cut is not good news, it shows the benefit of having a diversified portfolio as the reduction by Amec has been more than offset by increases in my other companies.
The total forecast value of dividends for 2017 currently stands at £8,117, but this is based on last year’s dividends plus a blanket 2% increase. This forecast will of course change through the year as a bigger proportion become actuals.
To receive over £8,000 without having to even get out of bed, although not enough to live on, is still, in my view, a fantastic baseline of income for no effort. This will also increase once I transfer my company pension into my SIPP, as I currently do not receive any income from this because it is all rolled back into the unit value. Once I have consolidated my pensions into one account, I estimate that I should be receiving over £12k per year in dividends.