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 going 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 June:
This month, my cash-flow approach generated the following income through dividends:
- Johnson & Johnson (16.37 EUR)
- Archer Daniels Midlands (10.91 EUR)
- Mensch und Maschine (100.77 EUR)
- Pfizer (32.11 EUR)
- Snap-on (24.86 EUR)
- IBM (21.54 EUR)
- 3M (27.02 EUR)
- Vonovia (89.25 EUR)
- Unilever (30.87 EUR)
- Realty Income (14.14 EUR)
- Stanley Black & Decker (9.74 EUR)
- Qualcomm (22.61 EUR)
- USU Software (89.50 EUR)
- MSCI World Energy ETF (60.95 EUR)
- FTSE Japan USD ETF (15.87 EUR)
- Imperial Brands (4.62 EUR)
- PepsiCo (13.70 EUR)
- Broadcom (21.80 EUR).
The total monthly income with dividends in June (after taxes) was: €606.63 / appr. $658
Dividend income report check
Solid performance compared to last year (+ 18 percent YoY).
Stocks I sold in June
In June, I sold all of my 122 Logitech shares given that the current CEO Bracken Darrell will leave the company to join V.F. Corp. as the new CEO. By selling my Logitech shares, I realized gains of almost 400 percent.
I like the company but my investment was largely based on Bracken Darrell and his product design vision. His sudden departure into the clothing industry has left me a little puzzled. In addition, Logitech’s business has already seen better times, so I no longer have faith in my original investment thesis.
I also sold several non-core holdings such as Q.Beyond, Appen, and Serviceware. All these potions were deep in the red and paid no dividends.
Stock purchases in June
With new liquidity at hand gained by the sales mentioned above, I opened the following new positions:
- AAK AB (57.8 shares)
- CBOE Global Markets (7.8 shares)
- Balchem (7.8 shares)
- Williams-Sonoma (12.8 shares)
- Extra Space Storage (7.4 shares).
Furthermore, I bought more shares of great companies via my already existing saving plans:
- Emerging Markets ETF
- Japan ETF
- Mayr-Melnhof Karton
- Snap-on
- General Dynamics
- Valmet
- CVS Health
- Diageo
Teamviewer(the saving plan was already paused in May)- Henkel
- Mensch & Maschine
- USU Software
- Stemmer Imaging
- AbbVie
- Automatic Data Processing
- Bristol-Myers Squibb
- Cisco Systems
- Generals Mills
- IBM
- Pfizer
- Qualcomm
- Realty Income.
