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.
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 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 with dividends in December:
This month, my cash-flow approach generated the following income through dividends:
- Pfizer (27.61 EUR)
- Johnson & Johnson (15.92 EUR)
- Archer Daniels Midland (9.83 EUR)
- Unilever (30.10 EUR)
- Snap-on (19.53 EUR)
- IBM (17.44 EUR)
- 3M (28.35 EUR)
- Qualcomm (15.81 EUR)
- Realty Income (9.41 EUR)
- Kontoor Brands (6.68 EUR)
- Stanley Black & Decker (10.02 EUR)
- V.f. Corp. (22.00 EUR)
- Imperial Brands (10.23 EUR)
- Broadcom (22.42 EUR)
- Simon Property Group (7.52 EUR).
The total monthly income with dividends in December (after taxes) was: € 252.87 / appr. $ 266
Dividend income report check
Solid financial performance compared to last year (+ 47 percent YoY).
As you can see, my income from dividends was higher each month than in 2021. Most of these increases were due to my monthly new stock purchases and a weak €. However, dividend increases also contributed to the total annual income being 70 percent above that from 2021. My medium-term goal remains to double monthly revenues every two years.
Sales in December
I sold 650 shares of my iShares MSCI World Energy Sector UCITS ETF to generate some liquidity and to realize some of the profit I made with this investment.
Stock purchases in December
In December, I bought more shares of great companies so that the monthly income through dividends will continue to rise in the future.
- USU Software (42 shares)
- Snap-on (3 shares)
- Cisco Systems (19 shares)
- Realty Income (14 shares)
- US Financials ETF (25 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 January
There will be some additional share purchases next month. As you may know, I am relatively flexible regarding 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)
- Johnson Outdoors (JOUT)
- Emerging Markets/Energy stocks/US Financials
- Vonovia (VONOY)
- Cisco (CSCO)
- V.F. Corp (VFC)
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.
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, so 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.