The year 2015 is behind us, so it's time to see how I reached my goals, and how my portfolio developed during the year. I will also set my goals for the 2016.
I did 34 transactions during the year, 30 purchases and four sales, I got dividends from 46 companies and distributions from two ETFs. My portfolio now includes 44 companies and two ETFs that pay dividends. Comparing to 2014: 21 transactions, 19 purchases and two sales, got dividends from 33 companies and from two ETFs. About a year ago I set my target to increase the number of dividend-paying companies, about 40, which I achieved over the last year. This year the intention is to focus mainly on raising the proportion of low-weight companies in my portfolio, it is possible that for some companies, I will say good-bye, and of course if the opportunity comes, a few new acquaintances always fit. Overall, I'm pretty satisfied that I was able to increase the number of companies in my portfolio and increased diversification during the last year.
During the year 2015 I made the following transactions:
Like 2014, also last year I cashed in about 30% of the SP Amerikka B equity fund, in addition on that in the summer I sold my entire position SP Yrityslaina fund. These two sales generated a total of €3,344.57 income, after-tax payment (capital tax 30%), my net income will be € 2,341.20. In the autumn I closed my position in Gazprom and the end of the year I decreased Golar LNG's share in my portfolio. These two sales generated a total lost of €2,030.57, which I can reduce from previous capital gains.
During the year 2015, I used a total of 46,578.29 Euros for the new acquisitions of shares. My sales gave me €14,186.75, almost all of the dividends that I received during the year 2015, a total of €11,141.29 I have already reinvested. In other words, 2015 I put new capital into my portfolio for about € 21k
I have written an article for each purchase, they can be found under the tag Recent Buy.
My total dividend income during the year 2015 was €15,002.40. After the payment of taxes, my net dividend income will be €11,141.29. My goal was to get €8,700 net dividend income during the 2015, which I crossed clearly. Apparently, I set my goal too low and I put new money in new acquisitions more than I had planned. The year also included a few positive surprises in the form of additional dividends, which I obviously could not foresee. Kraft paid $16.50, Fortum paid €0.20 and TELE2 paid SEK10.00 an extra dividend per share, thus accumulating a total net dividend income €1,456.63.
In 2014, my net dividend income was €7,303.06, so my income increased about 52% compared to last year. I am very pleased with this result, the year 2015 fulfilled all of my expectations of dividend income.
You can follow the development of my dividends here.
Change in taxation of capital income in 2016
The loss on disposal will change everything that is deductible from capital income, as it has previously been deductible only from capital gains. In other words, capital losses are now possible to reduce also from dividend income, which makes my tax planning simpler.
Goals for 2016
As I mentioned, 2015 offered some positive surprises, but also during the second half of the year, some unpleasant news. I wrote a summary of those in December and their effect on my future dividend income. When I take into account those additional dividends for 2015 and declared a dividend payment cuts and interruptions, this will reduce my net dividend income of about 2,200.00 Euros to compare year 2015 and set my portfolio's projected annual net dividend income around €9,700.00. Taking these into account, I would be very happy if this year's earnings would exceed last year's net dividend income, so I set my target of € 11,150.00 for 2016 and I try to increase my projected annual dividend income to €11,500.00 by the end of the year.
Thanks for reading and successful investments in 2016 for everyone!
Photo Credit: digitalart/FreeDigitalPhotos.net