The year 2016 is behind us, so it's time to see how I reached my goals, and how my portfolio developed during the year. I will also set my goals for the 2017.
I did 27 transactions during the year, 22 purchases and five sales, I got dividends from 55 companies and distributions from two ETFs. My portfolio now includes 54 companies and two ETFs that pay dividends. Comparing to 2015: 34 transactions, 30 purchases and four sales, got dividends from 46 companies and from two ETFs. About a year ago I set my target to focus mainly on raising the proportion of low-weight companies in my portfolio.
However, this not realized because I added ten new companies in my portfolio, which in the future will hopefully pay me growing dividends. I do not have any particular objective to increase the number of companies this year, but I keep my eyes open, and if the market is favorable, I might add my portfolio diversification. Overall, I'm pretty satisfied that I added more companies to my portfolio and increased diversification during the last year.
During the year 2016 I made the following transactions:
2016 I closed four positions, SP Amerikka B equity fund, Shire plc, Ensco plc and Prosafe SE. I received shares of Shire plc, when it completed combination with Baxalta Incorporated. These four sales generated a total lost of € 4,464.57 which I can reduce from capital gains.
During the year 2016, I used a total of 34,091.21 Euros for the new acquisitions of shares. My sales gave me €14,706.91, almost all of the dividends that I received during the year 2016, a total of € 10,201.25 I have already reinvested. In other words, 2016 I put new capital into my portfolio for about € 9k
My total dividend income during the year 2016 was € 13,767.73. After the payment of taxes, my net dividend income will be € 10,201.25. My goal was to get € 11,150 net dividend income during the 2016, that I do not reached. Avance Gas put an end to the dividend payment in the second half of the year, which reduced my dividend income more than 1k this year. Apparently, after an excellent 2015, I set my goal too high and I also put new money to work less than I did year earlier. Compared to last year, 2016 also included less positive surprises in the form of additional dividends.
In 2015, my net dividend income was € 11,141.30, so my income decreased about 8% compared to last year. I'm quite satisfied with this result, although I don't reached my goal at this time.
You can follow the development of my dividends here.
Goals for 2017
Probably I will close my last fund, which I still have, and move that capital to the dividend paying shares. During this year, my purpose is to make purchases more frequently, but in smaller quantities than in the past. My plan is to buy some shares almost once a week, and I do not try to wait for a week's, month's or year's, the best time of purchase, because I do not however know when it is.
2016 was the first year when my dividend income decreased compared to the previous year. As I wrote about a year ago, I would have been very happy if I would have reached the same result as in 2015. As you noticed, I stayed for about a thousand euros below my target. Now my goal is to exceed the 2015 achievement and therefore I set my target of € 11,200.00 for 2017 and I try to increase my projected annual dividend income to €11,500.00 by the end of the year.
Thanks for reading and successful investments in 2017 for everyone!
Photo Credit: digitalart/FreeDigitalPhotos.net