daveh's Income portfolio 6month dividend review

[daveh]

I normally review my income portfolio annually and last years review is here:
viewtopic.php?f=56&t=21155

Since the year end I've purchased AV.B (Aviva prefs) and MCT (Middlefield Canadian Trust) as new holdings and topped up DC. (doh), PFC (doh), LLPC HFEL and VWRL. The two marked doh were prior to Covid 19 the rest after.

This is just a brief review to look at the income performance in the first 6 months of the year compared with the same period last year.

Income declared per accumulation unit is down from 13.53p/unit at 30June 19 to 7.37p/unit at June 20 a fall of 45.5%
Income declared per income unit is down from 6.45p/unit at 30June 19 to 3.28p/unit at June 20 a fall of 49%

In cash terms the income has fallen by 41.7% and at least 12 of my 42 holdings have cut, cancelled or deferred their dividends. It will be interesting to see if the % fall in income is better or worse by the end of the year.

The change in unit value is as follows

date           Acc Unit          Inc Unit
30 Jun 19     3.35                1.60
31 Dec 19     3.87                1.72
30 Jun 20     3.30                1.41

[Arborbridge]

I normally review my income portfolio annually and last years review is here:
viewtopic.php?f=56&t=21155

Since the year end I've purchased AV.B (Aviva prefs) and MCT (Middlefield Canadian Trust) as new holdings and topped up DC. (doh), PFC (doh), LLPC HFEL and VWRL. The two marked doh were prior to Covid 19 the rest after.

This is just a brief review to look at the income performance in the first 6 months of the year compared with the same period last year.

Income declared per accumulation unit is down from 13.53p/unit at 30June 19 to 7.37p/unit at June 20 a fall of 45.5%
Income declared per income unit is down from 6.45p/unit at 30June 19 to 3.28p/unit at June 20 a fall of 49%

In cash terms the income has fallen by 41.7% and at least 12 of my 42 holdings have cut, cancelled or deferred their dividends. It will be interesting to see if the % fall in income is better or worse by the end of the year.

The change in unit value is as follows

date           Acc Unit          Inc Unit
30 Jun 19     3.35                1.60
31 Dec 19     3.87                1.72
30 Jun 20     3.30                1.41

Phew! That's pretty bad, but it's not the end of the month yet. Perhaps the cavalry will arrive this afternoon

I'm not looking at mine until tomorrow, but I expect my result will be similar - we are all suffering loss of divis and very much all round.

Arb.

[daveh]

Yes I'm glad I'm not needing to live off it yet, and that it won't be my only source of income come retirement. But it was never planned to be my only source of retirement income as I have a DB pension and some additional AVC DC pension. The income portfolio was a safety net if I had to retire early or tide myself over between jobs, to provide an income until I could take my DB pension (or get a new job). It should still fulfil that role, but it would be tighter than I'd like after the income drop so far this year.

[daveh]

Phew! That's pretty bad, but it's not the end of the month yet. Perhaps the cavalry will arrive this afternoon

I'm not looking at mine until tomorrow, but I expect my result will be similar - we are all suffering loss of divis and very much all round.

Arb.

I've seen your update here viewtopic.php?f=15&t=24225 and noted your income performance was much better than mine, but also realised you were quoting 12 month rolling income whereas I was quoting income over the comparable 6 month period January to June for 2019 and 2020. I think the 6 months period may be more representative of what we will see over the whole year, but thought I would go back and have a look at my data for a rolling 12 month income ending 30th June. In cash terms income, for a 12 month rolling period, has fallen by 14%. This is much better than the 6month period and more in line with Arb's figures.
Income /unit expressed as the income divided by # units on 30June is:

12months to     Acc units    Inc Units
30June 19         17.64p       8.41p       
30June 20         14.14p       6.28p

So on a rolling 12 month period my dividend per accumulation unit is down 19.8% and per income unit by 25.3%. For comparison in the GFC my dividends fell in the 09 calendar year by 27.5% for accumulation units, 30.8% for income units and 18% in cash terms. 09 is the only year my dividends have not grown over the previous year (in cash or p/unit terms) and this year will be the second.

That doesn't look so bad, but I think by the end of the calendar year I'll be looking at a drop in dividend income of around 50% unless we get a remarkably rapid reinstatement of divis, which from the SMDS announcement isn't looking that likely.

[Alaric]

That doesn't look so bad, but I think by the end of the calendar year I'll be looking at a drop in dividend income of around 50% unless we get a remarkably rapid reinstatement of divis, which from the SMDS announcement isn't looking that likely.

If the dividends on FTSE 100 ETFs are anything to go by, a fall of 50% will be a good result.


Ishares
12/Jun/2020 11/Jun/2020 GBP 0.0426
13/Mar/2020 12/Mar/2020 GBP 0.0635
13/Dec/2019 12/Dec/2019 GBP 0.0607
13/Sep/2019 12/Sep/2019 GBP 0.0951
14/Jun/2019 13/Jun/2019 GBP 0.1056

[Gotah27]

What did you expect in the times of coronavirus and lockdown? The light in the tunnel is that they reduced, did not suspend the dividend ...

[Arborbridge]

What did you expect in the times of coronavirus and lockdown? The light in the tunnel is that they reduced, did not suspend the dividend ...

An orphaned comment. Where are its parents?

Arb.