How dispersed is you dividend income over the twelve months in the year? Well, for some reason, I would like to have a relatively steady flow and I hope that with enough saving, investing and dividend growth that stream of dividends will eventually cover my expenses. As you might now, my goals for 2017 include having dividend income above 100 for 5 months. Recently, I have looked at various options in order to achieve this. Then I had multiple scenario’s by which I can achieve this. In the end, I went for the one that required the least amount of fresh capital. This scenario required adding to my positions in the iShares UK Dividend (TER:0.4%) and the Global X SuperDividend (TER:0.45%). So, I added to both positions last week. Both funds were already part of my portfolio, so the total number of positions did not increase. Essentially, I have crushed my goal of having dividend income above 100 for 5 months now. And I already hear you say, what kind of a goal for 2017 was that if you already achieve it by mid February? Well, the trick is that I bought both funds with leverage ie I borrowed the amount. In my monthly charts, I show you my dividend income after subtracting interest costs. So, now the game changes slightly to reducing the debt in my portfolio as opposed to buying more dividend paying funds such that I can lower the interest charges. If I do not reduce my portfolio debt quickly enough, I will not achieve the five months above 100. And while I started the year strong with my January savings rate, I know that February will be terrible from a savings point of view due to some large expenses. I need to make up for that in the months to come and reduce the leverage in my portfolio.
Happy investing and happy saving everybody!