Tuesday, 28 April 2015

2014 Dividends Profiled.

One of my favourite tasks in a year is to take a look at the dividends coming in and how (hopefully), they show an increase over previous years.

Straight off the yield for 2014 v. the 31 Dec 13 portfolio valuation was 3.84%.
A little down on the 2013 yield of 3.9% perhaps but further investigation shows that there was a 30.08% overall increase in portfolio valuation (December 2013: Portfolio Update.), so thats 3.84% against a 30.08% higher portfolio valuation, which in turn suggests a significant increase in yield?

Month by month the pattern runs similar to previous years, which you would expect without a significant turnover in stocks held.
The one anomaly from previous years being March which has jumped to being the best month, or has it?

Further inspection reveals the cause of the jump to be the Vodafone special dividend received as part of the distribution from the sale of Verizon Wireless.

It also warns me that April is one of my worst months for dividends with just a small token from General Electric expected, unless it falls into May of course.

Taking the cumulative profile and matching it to previous years gives the following pleasing picture, where  I have used the 2011 actual yield as the baseline, 100%, so each subsequent year would illustrate an increase (thankfully no decrease), over this baseline.
Because it presents an exceptional item (and an exceptional jump!), I have also shown the Vodafone special dividend (just the special not the normal interim/final), as a separate step on top of the 2014 data so we can see the comparable increase with and without this exceptional item.
Even without it, the 2014 actual £ yield comes in at almost double that of 2011!
Not bad in 4 years!

Again the month by month view shows an overall increase, although there are more fluctuations which illustrate a change in stocks held and/or the dreaded dividend cuts.
There are also some occasional movements if dividend dates are at month end/starts, then, in later years, subsequently fall into earlier or later months.

Anyway, looking ahead, I am expecting further increases in 2015, even including the Vodafone special in last years total.

More an activity of touching base to keep perspective but I might extend it to keeping track of ex. dividend dates and upcoming payments (as I sometimes do over short timescales), as a means of seeing the hidden value in my portfolio, dividends entitled but not yet received!

Related Posts:
December 2013: Portfolio Update.
2013 Dividends profiled.
First dividends of 2013 (and 2012 dividends in profile).
My first dividend of 2012 (and 2011 dividends in profile).

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