Welcome to a new report of my Dividend Diary on the TEV Blog. Here, I report the development of a cash flow-oriented investment approach that focuses on generating a passive income through dividends. Against this background, the goal is not to outperform the market but to put food on the table through a regular income via dividends.
With the Dividend Diary, I document how a cash-flow investment approach can be part of well-balanced wealth management. To keep things simple, I have built three pillars:
- Active income.
- Passive income.
- Conversion.
Dividends fall into the last two categories. They are passive because they provide a cash flow without me having to go to work. Additionally, they are an essential pillar for the conversion since they can be reinvested to generate even more income in the future. That is the Theory. Now let’s get down to practice.
My monthly income through dividends in April:
This month, my cash-flow approach generated the following income through dividends:
- Automatic Data Processing (7.13 EUR)
- Kimberly-Clark (24.61 EUR)
- HP Inc. (14.38 EUR)
- IBM (19.15 EUR)
- Iron Mountain (15.64 EUR)
- Henkel (45.75 EUR)
- Diageo (21.71 EUR)
- GlaxoSmithKline (23.60 EUR)
- Merck & Co. (18.63 EUR)
- Deutsche Telekom (86.40 EUR)
- Best Buy (13.70 EUR)
- Leggett & Platt (31.50 EUR)
- Realty Income (7.33 EUR)
- Swiss Re (105.04 EUR)
- Cisco (12.24 EUR)
- Altria (22.94 EUR)
- MSCI USA Financials (80.94 EUR).
The total monthly income through dividends in April (after taxes) was: €531.54/appr. $550
Dividend income report check
Great financial performance compared to last year (+ 60 percent YoY).
Stocks I sold in April
I sold all my 124 AT&T shares. Even though the spin-off is actually tax-free, I would probably have had to pay taxes according to domestic tax practice. This price was too high for Warner, especially since I could simply buy shares myself without any tax disadvantage.
Stock purchases in April
In April, I bought more shares of great companies so that the monthly income through dividends will continue to rise in the future.
- Deutsche Telekom (60 shares)
- AT&T (174 shares)
- Swiss Re (9 shares)
- Siemens (7 shares)
- MSCI USA Financials (52 shares)
Usually, I would briefly explain why I bought these companies/ETFs. However, against the background of recent events in Europe, I have zero interest in finances.
Watchlist for May
There will be some additional share purchases next month. As you may know, I am relatively flexible when it comes to new investments. Either I buy new positions, or I increase my shares in existing investments.
The following companies are on my watchlist in particular:
- Microsoft (MSFT)
- Digital Turbine (APPS)
- Johnson Outdoors (JOUT)
- Valmet Oyj
- Qualcomm (QCOM)
- Stanley Black & Decker (SWK)
- Emerging Markets/Energy stocks/US Financials
- Unilever (UL)
- General Mills (GIS)
If you look at my report from last month, you will likely see that none of the companies I bought were on my watchlist. Why is that? Is the watchlist nonsense, and in the end, I only do what I want anyway? Yeah, a little bit. I don’t have a fixed system for my stock purchases, and that’s one thing I have to consider changing.
However, I have an extensive overview of many companies that I look at from time to time. The watchlist contains primarily companies that I have examined particularly carefully, where substantial changes are imminent or companies that are in my focus for other reasons.
These companies are present to me in some form, which is why I put them on the list and perhaps monitor them a little more closely than other companies. But it often happens that I invest in different companies when it seems convenient at that moment.
