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.
Transactions
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.
Dividends
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
Great progress, Hawk. 2015 was a busy year for me too - just like you. Keep it up and Im sure you will reach taht goal for 2016 and be well on your way to financial independence.
ReplyDeleteBest
R2R
DH
ReplyDeleteWhat a great 2015 you had. Hope that 2016 would be a much better one, and you will pass your dividend income goal this year also.
Sharon - Divorcedff
Hi DH, do you have any link to where I can read more about the change in taxation of capital income? BR, Frihetsfonden
ReplyDeleteHi Frihetsfonden!
DeleteUnfortunately, I didn't find any official link, but some short articles about that and only in Finnish (http://www.yrittajat.fi/fi-FI/verotjarahat/verot/veromuutoksia-vuodelle-2016/) (http://www.taloussuomi.fi/verotus/veromuutokset-2016)
I hope these will help!
DH
Thanks DH!
DeleteI will take a look at those links.