Hi readers, 👋
Welcome to this little December wrap-up.
Another year of rising dividends and strong price performance. I’m still struggling to fully grasp it, but it’s becoming undeniable: the ‘Early Game’ is over. I have officially entered the ‘Mid Game.’
This applies to both my personal life and my financial journey, where the ultimate goal is for dividends to fund a lifestyle that isn’t shy about joy and a touch of hedonism. So, let’s crunch some numbers.
The overall dividend income in 2025 was € 8.5k, up 24 % compared to last year, and despite a very weak US dollar that lost 14 % in value vis-à-vis the Euro. Monthly dividends now exceed € 700, and for 2026, I expect to see that climb to somewhere between € 800 and € 850, depending on the US dollar-euro development.
On average, the stocks in my current portfolio increased their dividends by 9.52 % in 2025. If I exclude the 33 % cut from BASF, that organic growth actually hits 10.30 %. I’ve never had a year this strong. Of course, looking at the portfolio on December 31st involves a bit of ‘creative accounting’ since I benefited from selling positions like Alexandria Real Estate and Bristol-Myers Squibb earlier in the year. But in the end, the trend is what matters: the compounding effect is becoming tangible.
A prime example is Deutsche Telekom. Here, dividend hikes are stacking up like bricks to form a massive tower. After two years of 10 % increases in 2022, 2023, and 2023, and a significant 16.8 % jump in 2025, they’ve announced another 11.1 % hike for 2026. With an annual price performance of over 13% for my holding, this stock has become a true compounder. Consequently, I increased my position again in December will add further shares in the coming months.
I’m continuing to think about cutting my underperformers. My average annual return since 2017 has hovered between 11 % and 12 %. I want to build on this and tilt the portfolio toward companies capable of growing both earnings and dividends at a higher pace. Many of my current holdings offer stability and low drawdowns during crises, but at 35, I’m young enough to ride out the storms. Right now, that stability comes with high opportunity costs.
Moving forward, new investments will lean even more toward quality growth. A dividend is still a requirement, even if the initial yield is lower. Given my current portfolio size and cash flow, I have the financial freedom to prioritize total return over immediate cash. I’m not rushing anything. This has been a gradual shift over the last two years. Recent buys like Salesforce and Intuit, as well as smaller DACH-market players like Frequentis, Einhell, and Renk, are just the next building blocks on this journey. 2026 will be about further refining this investment philosophy. It’s all part of the process, and I’m sure there will be plenty of lessons along the way.
My monthly income with dividends in December:
My investment approach is simple and consists of three pillars:
- Active income.
- Passive income.
- Conversion.
Dividends fall into the last two categories. They are passive because they provide a cash flow without the need 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.
This month, my cash-flow approach generated the following income through dividends:
So overall:
- the total monthly income with dividends in December (after taxes) was: € 492.16 / appr. $ 573
- compared to last year, the dividend growth was good (+ 17.6 % YoY).
- ⌀ monthly dividend income (ttm): € 709.64 / appr. $ 826
- ⌀ monthly dividend income (ttm) compared to the previous month: + 0.85 %.
Here is the big picture:
The following part is for paid subscribers only. It contains an overview of the stocks I purchased in December and some more portfolio details.
Since this report contains valuable/personal insights, I want to restrict access to paying subscribers only. I invest a lot of time and effort into writing these pieces/researching companies etc..
So if my work is worth the price of a coffee to you, it would go a long way in keeping me motivated and providing even more insights! ☕️
Since I’m just starting, I’ve set the lowest fee and am offering a discount for the first 10 paid subscribers. So now is the perfect time to join! 💡✨
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Best,
