Hi everyone,
Here’s already our 3rd Dividend Income for my mom’s portfolio.
Valkenburg – Holland
I am writing this blog post while I am in Chihuahua, Mexico. It is a business trip. But as you know I love to travel. My mom loves to travel too since she went into retirement. My mom saves 100 Euro/month but honestly she spends more money travelling than the money she saves. Good for her that she can enjoy by doing so. This year my mom has planned three trips. She just came back from a 3 day trip to Valkenburg and Maastricht in Holland. She had a great time, she said. I am happy for her!
While she enjoys life travelling and meeting her friends, we keep an eye on her investments. We selected this time a picture of little ducks in spring time. Her investments are like little ducks as we have only started this portfolio since 1st January 2017. We are now 3 months far.
We keep my mom’s money growing as otherwise she would get poorer and poorer. She doesn’t keep an eye on her cashflow. She doesn’t know that a high inflation of 2,93% in March eats her buying power away month after month. So that’s why it is important to put a portion of her saved money at work. We started with 25k but had only a fraction of that money invested during the first two months.
Read her Dividend Income of February 2017 if you want to know exactly how much.
Now you can read our Dividend Income March 2017 Report Out for my mom’s portfolio.
Dividends received in March 2017
During the month of March 2017, we received 201,78$ dividend income. This dividend income was composed of 82,49$ and 111,62 Euro. We converted the 111,62 Euro in a dollar amount to track our growth. The European dividend came from a European bank that has been increasing their dividend year over year. For 2017 this company decided to increase their dividend with 5%. Since the moment we purchased this stock for my mom’s portfolio we also have a nice 9% capital gain on this stock but that is not important for us. We are invested in this stock for the longterm as we see a lot of upside potential in this company. A 20 to 40% increase within the next 5 to 10 years is realistic according to us. But we can be wrong…we will evaluate their performance year after year. As long as they keep on increasing their dividends we can’t complain…
Our dollar dividend came from 3 of our monthly paying investments that we did in December.
This time we will not compare our dividend income with the savingsamount needed to get the same result. You know how to do the math. We hope you do…but in March some banks lowered their interest rates even more…to a LOW of 0,10% !! Some banks are lobbying for ZERO percent..can you imagine??? OMG!!
Growth and Portfolio analysis
Now my mom’s dividend income has accumulated to 496,56$ and 111,62 Euro. If we add this up, we have a total of 615,85$. This exceeds the income she made in previous years. This amount is 51% of our YEARLY OBJECTIVE of 1200$. And only after 3 MONTHS !!
On 29th March, we made another 5k investment in a monthly paying ETF. This ETF will pay us 16% on a monthly basis….YES…you read it correctly…16%!! We look forward to see this reflected in our monthly results.
Going forward
We are now in April 2017. The portfolio is invested for 23k and we have now around 1k capital gains. Those capital gains are virtual as we don’t lock in our capital gains. We focus on growing our little ducks to adult ducks. Once those little ducks are big, they will give us other little ducks in the future…our dividends !! Grow our portfolio with more dividend paying opportunities is our focus.
During the month of March we also sold a high cost mutual fund advised by the bank and added this cash flow to my mom’s cash flow position. This means we now have an additional 9k to invest. We will review in which direction the stock market moves and search for good investments.
How are you doing with managing your finances? Do you put your money at work and grow your cash flow tree? We hope so ! We end with a final quote.
Think about this one….this is what we are doing…we keep on paddling forward towards our financial objective…
10 Response Comments
There are worse places for a work trip… Enjoy!
I made a similar move: I sold 25 pct of my mutual funds – the most expensive ones that I have – and I will reinvest in an ETF portfolio based on the yield factor.
Very nice overall, you should be happy with that. Keep those numbers climbing!
Thanks ! We will try to do so 🙂
Like the move to sell the high cost mutual fund. Made a similar move a few years ago and haven’t looked back since.
Great numbers and progress here! Loving the results.
Bert
Thanks !!
Nice year-over-year growth! Also like selling the high fee mutual fund. Lowering fees will go a huge way over the long term!
Scott
Dividend Cake,
I talked to my mom about doing something similar. She’s not big into investing and we talked about me investing money for her through dividend income stocks. She was opened to the idea and will likely give me about $500 to get started.
$500 isn’t a lot of money, but the plan is that she will add to it and I can also add to it whenever I have a spare $50 or so. This isn’t so much so that she can retire off of, but to help with any future expenses or the like.
I think it’s a great idea you’re managing your mom’s dividend portfolio.
Thanks.
My mom is not big in investing in the stock market either. She thinks that I will lose all her money (bankers tell her this…) She would rather believe a banker who talks her in a high cost investing fund with 3 to 6% fees.
Well after 3 months, we had a great cash flow so far. We think we can exceed our yearly target. We will see.
500$ is not much to start with. Try to add in chunks so you show the snowball effect and the cash flow coming in. The exponential growth only starts when you add to it on a consistent basis.
My kids’ portfolio is the lowest in dollar value. (10k) but we hope to achieve 6% this year. Another interesting one to follow.
Thanks for the feedback.
Thanks. We are surprised ourselves. We hope that we can keep the snowball rolling and keep on putting those dividends on her bank account.