Hello and welcome to the first dividend income report of 2017 for my kids’ portfolio!
As you could read in My kids’ portfolio page, we doubled our kids saving money from 5K to 10K in a 5 year time frame using our defensive strategy from our Financial strategy. Now we are switching gears and we are activating this 10K into a cash producing factory for the future of my kids. Therefor we apply the offensive strategy as we have a 10 year timeframe. My son is today 12 and my daughter is 8. Putting it on a savings account would be the same as losing 265 euro per year…insane.
At the 1st December 2016 when the stock market rallied to new highs, we made our first investments for this portfolio. We invested in 1 ETF’s, two high dividend stocks and one European dividend payer. We invested 90% of the cash position which had a starting balance of 10.000 Euro.
The 2017 goal for my kids’ portfolio is to generate 600$ in the total year which equals to a investment return of 6%. A good return on investment I would say compared to the alternatives. Let’s see if we achieve that in January 2018.
Now you can read our first Dividend Income January 2017 Report Out
Dividends received in January 2017
During the month of January 2017, we received 71,61$ dividend income. This came from 3 of our 4 investments that we did in December. We received a quarterly dividend payment of 37,26$ and a two monthly dividend payments with a total of 34,35$.
We also have a currency gain of 8% but we don’t take this into account as we expect the dollar to become stronger against the euro. We do not intend to transfer our portfolio back into Euro’s within the next 10 years. At this stage we don’t care. All money received will be re-invested in additional shares going forward.
We still have 10% cash available for new dividend investments, however we take a break now as February may turn out to be a slow month and will review opportunities for new investments. We will first accumulate more cash and wait for a dip of the stock market or one investment opportunity.
Growth
At this stage we can’t compare our results with any past performance. What we will do for sure, is compare our portfolio performance against the Stock market “guru” Paul Dhoore, who advises the perfect investment portfolio on Belgian TV VTM. We believe he gives an update on his portfolio during the middle of the year and one performance update in January 2018. We wonder if he got any cash paid out already…hahaha…most likely not.
If you missed the blog post How would you invest 10.000 Euro in 2017? , you can read it here.
Going forward
We are now entering February 2017.
We are happy about the first results of our portfolio for our kids. This feels like 4 years ago when we started with My Own Portfolio after losing 30% of my net worth. We had the same kind of performance at that stage and started with little cash payouts which accumulate over time. If you don’t understand the importance of the compound interest and starting as early as possible, you must read the following blogpost
Get rich at your retirement – Learn how?
Then you will understand why I start today 2017 with a Dividend Investment Portfolio strategy for MY KIDS.
Good luck with your personal finance strategy for your kids!
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