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 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 with dividends in May:
This month, my cash-flow approach generated the following income through dividends:
- AT&T (38.80 EUR)
- Bristol-Meyers Squibb (33.40 EUR)
- CVS Health (7.95 EUR)
- General Mills (25.81 EUR)
- Munich Re (171.09 EUR)
- Bayer (32.39 EUR)
- BASF (150.20 EUR)
- Allianz (166.98 EUR)
- General Dynamics (7.11 EUR)
- Mayr-Melnhof Karton (21.68 EUR)
- Apple (7.41 EUR)
- Omega Healthcare (22.14 EUR)
- Realty Income (6.59 EUR)
- Danone (27.06 EUR)
- AbbVie (29.82 EUR)
- Procter & Gamble (14.17 EUR)
- Fresenius Medical Care (19.87 EUR)
- SAP (54.12 EUR)
- Vonovia (74.70 EUR).
The total monthly income with dividends in May (after taxes) was: €911.29/appr. $975
Dividend income report check
Great financial performance compared to last year (+ 55 percent YoY).
Stock purchases in May
In May, I bought more shares of great companies so that the monthly income through dividends will continue to rise in the future.
- SAP (12 shares)
- Mensch und Maschine (22 shares)
- Qualcomm (8 shares)
- Unilever (23 shares)
- Stanley Black & Decker (18 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 June
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)
- Digital Turbine (APPS)
- Johnson Outdoors (JOUT)
- Valmet Oyj
- Emerging Markets/Energy stocks/US Financials
- Vonovia (VONOY)
- USU Software
- Cisco (CSCO)
- Henkel (HENKY)
- 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, 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.