August 2018 dividend growth – Path to FIRE

“The summer months result in a considerable outflow of financial resources, thankfully the August 2018 dividend growth is starting to significantly compensate for those expenses!”

The summer, a great time to enjoy the family, friends, weather and all the costs associated with it. For us this meant traveling, eating out, new clothes, gifts and birthdays. Well worth it if you ask us, as it’s not just about saving money but also enjoying life each and every day.
Compared to August 2017, the August 2018 dividend growth doesn’t seem all to high (€53.82 in 2017 vs €307.66 in 2018). A >500% growth year-on-year is something that does get us excited though. We are sure that this growth rate can not be maintained, nevertheless we are excited by the future prospects.
Now let us break down which shares contributed to our dividend growth.

Your Diagram Title2018 August → 2018: 307.662018 → VOD: 198.162018 → O: 48.76DRG.UN → 2017: 25.902018 → DRG.UN: 25.852018 → AAPL: 18.67O → 2017: 16.292018 → HAS: 12.89HAS → 2017: 6.88BRB → 2017: 4.752018 August: 307.662018 August: 307.662018: 307.662018: 307.66VOD: 198.16VOD: 198.16BRB: 4.75BRB: 4.75AAPL: 18.67AAPL: 18.67HAS: 12.89HAS: 12.89DRG.UN: 25.90DRG.UN: 25.90O: 48.76O: 48.762017: 53.822017: 53.82

Dividend already owned in August 2017

Realty Income (O)

As a monthly dividend payer, we are sure that you expected this one to be included. We did not add any shares and the payout has not increased compared to last month. More to come next month.

Dream Global REIT (DRG.UN)

The other monthly dividend payer in our portfolio. The dividend payout has been very stable for a long time and thus the only way to increase the payout is if we bought more shares. Didn’t do it this month. Once enough dividend has been paid out, we may use it to buy a couple of new shares.

Hasbro (HAS)

The August 2018 dividend growth story really shines with Hasbro. We increased the number of shares from 14 in 2017 to 24 in 2018 (70% increase). In addition, the August 2018 dividend payout was increased from $0.57 in 2017 to $0.63 in 2018 (10% increase). Separately, the share and dividend increase are impressive. Combined, they result in an 87% dividend payout increase compared to 2017. Being aware of the risks that this is not guaranteed in the future, it is a momentum that provides us with motivation to continue.

Dividend new for August 2018

Vodafone (VOD)

The first new entry contributing to our August 2018 dividend growth, and the biggest contributor as well with €198.16. We bought 1770 VOD shares, assuming that the Brexit will not change that people need to communicate with each other. The share price has declined since we purchased the shares, which doesn’t change our opinion. We’re long-term holders and are assuming that shares will go up and down. For August, they’ve provided us a nice boost to our financial position.

Apple (AAPL)

Here’s a share we thought we would never own as we considered the shareprice to be bloated. Didn’t we tell you that we call this website MyBlunders because we make mistakes?
Our mistake is that we did not value Apple appropriately and missed out on a tremendous growth. We finally purchased a small position in 2018 ( 30) before the recent announcement sent the share price even higher. We’re starting to appreciate the company a lot more and will certainly consider expanding our position.

Dividend discontinued before August 2018

Burberry

Even though we are long with the shares that we own, we do asses our portfolio on a routine base. We sold our shares around the middle of 2017, as we thought the company was not setup appropriately for the future. We used the funds and invested in other companies, which has shown significant growth. Q2 2018 showed a turnaround at Burberry and since then the share price has increased >60%. The dividend payout has increased by 6.7%, which we missed out on. We could consider this a blunder on our side, although the funds we created from the sales of the shares have been providing growth as well. It does show us though that long-term investment requires us also to stay committed during a weaker period.

Total August 2018: €307.66 vs €53.82 August 2017

An impressive August 2018 dividend growth was achieved, even though it’s one of the lower paying months. Our current average is running around €550, mainly driven by the extremely high March 2018 dividend contribution.
We’re still discussing what our August 2019 dividend growth target should be, it makes us both nervous and excited to set ourselves the target of outperforming this years growth rate. If we did, we would end-up with over €1700,- worth of dividends. Seems high, but we like aiming high.

How was your August 2018 dividend growth and what do you think we should be aiming for next year? Let us know in the comments.

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1 Response

  1. September 29, 2018

    […] are a number of shares we regret not buying earlier, we mentioned some in our August 2018 Dividend growth update. Royal Dutch Shell (RDSA) is definitely one of the top contenders. The current oil price is […]

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