Dividend update: August 2016

By | September 1, 2016

Dividend update August 2016 - dividends down under blogAuthor: Mr and Mrs DDU.

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One day we want to be able to live purely off the income from our investments. The earlier this happens in our lives, the better.

How do we know if we’re getting any closer? By tracking it of course.

Our dividend updates and graphs run from 1st July to 30th June each year, lining up with the Australian tax year. So this is this the 2nd month of this tax year.

Dividend Update

In August 2016 we were paid the following in cash and franking credits:

  • Nil

Well that’s not very exciting. Not many Australian companies pay in August and we don’t own any of those (yet). We receive most of our dividends in September & October (and March & April) – so the next 2 months should treat us well.

Here is our exciting dividend graph for the tax year so far:

Dividends Down Under Dividends August 2016

I hope you enjoyed our short and sweet update.

How was your August for dividends?

 

Thanks for reading this article about our investing journey Down Under.

Onwards and upwards!

38 thoughts on “Dividend update: August 2016

  1. Stalflare

    You are not going to diversify and invest in other countries as well right? US companies pay dividends during these months, but of course you need to take currency risks and that might not be everyone’s cup of tea… Still, as long as it’s planned “it’s not a problem, it’s a feature!” 🙂
    ciao ciao
    Stal

    1. Dividends Down Under Post author

      Ciao Stal,

      I’m sure we will eventually diversify to owning overseas-listed stocks. At the moment there is a big tax advantage for us to only own Australian listed ones.

      I’d rather we buy the best stocks for out portfolio, no matter what month or how often they pay 🙂

      Mr DDU

  2. Jax

    I did not do much better than you this month-a whopping $4 and some change. Is there a reason why most Australian companies don’t pay dividends in August? Is it because it’s too close to the start of the tax year?

    1. Dividends Down Under Post author

      $4 is a lot better than nothing.

      Most Australian companies pay twice a year, and they try to hold onto their cash for as long as they can, I guess. Your tax year reasoning is why none of them pay in June, the ones that pay around that time wait until July & the new tax year.

      Mr DDU

  3. The Finance Smith

    Hey,

    Now that I have read your post, it came back to me how I used to receive dividends in September & October (and March & April) back in Australia. I have never tracked them properly so I didn’t notice the trend in the months of payments.
    Anyway, It’s usually May and August here in Singapore. I reckon it’s a good idea to invest in shares/ETFs overseas. It helps to have global equity exposure and spreads the dividend income out too. Plus currency diversification might not be a bad thing given how volatile the Australian dollar can be.

    Cheers,
    TFS

    1. Dividends Down Under Post author

      Hey TFS, I hope we brought back some good memories about Australian investing.

      Don’t worry, we definitely plan on becoming more and more diversified as time goes on. Don’t forget that some of our Australian listed holdings have a mainly overseas presence (such as Altium), but they too don’t pay in August!

      Mr DDU

  4. Tawcan

    Interesting that not many Australian companies pay dividends in August. Do they typically pay semi annual dividends or quarterly?

    1. Dividends Down Under Post author

      I’d guess 90-95% of companies pay semi annual, in September/October and March/April. There are some that pay quarterly in July, October, January and April. There are only a few that pay in August in February. There’s a few financial and other odd companies that have a payment date in November, December and May but not many. I haven’t come across anything (except 1 monthly payer) that pays in June.

      Mr DDU

  5. Miss Mazuma

    As my Grandpa used to say – $8 is better than a poke in the eye. 🙂

    I just commented on Dividends and Hobbies blog about starting to track my dividends. I hadn’t even thought about it until today! I track everything else – why not the income I’ll actually be depending on?! Why am I so behind on the concept? I’ll be adding a new line to my spreadsheet for next month.

    Thanks, again, for stopping by and keep it up!! 🙂

    1. Dividends Down Under Post author

      What a funny phrase, but he’s right – I would prefer $8 over a poke in the eye.

      Dividends are awesome to track as that’s what you’ll be relying on to pay for your expenses 🙂 Looking forward to your next month with it included.

      Mr DDU

  6. Finance Solver

    I love the simplicity of this post. “nil.” In all seriousness, September should be kicking for you guys. I’m looking at Kohls for dividends, 4.5% looks tasty but retail has been doing so bad so I have to do a lot of research on it. Not an Australian company but thought I would share!

    1. Dividends Down Under Post author

      Hopefully next year we will have something to report in August 🙂

      I don’t really know anything about Kohls so I hope it’s a good growing company, in which case the yield looks nice for how low interest rates are. Thanks for sharing, always interesting to learn about companies I havent heard of before.

      Mr DDU

  7. ambertree

    Hey DDU, the timing of the payment does not matter. It is the yearly result, Right?

    On our journey, it is patience that matters.

    Atl

    1. Dividends Down Under Post author

      Exactly ATL, that is the only thing that counts 🙂 We don’t mind. Perhaps in a year from now we WILL have an August payer.

      Mr DDU

  8. Team CF

    Short and (bitter) sweet it is. Do you have any Australian stocks that pay dividends in August? Maybe nice to get a few (assuming they fit your selection criteria of course)? Are there any REIT’s in Australia, these typically pay monthly and generally have good yields as well (dividend growth on the other hand is usually a different story).

    1. Dividends Down Under Post author

      There are a few different companies / shares that pay in August. There aren’t REITs that pay monthly, but they do pay half yearly. I’m sure in a year or 2 we’ll own a few of those 🙂

      Mr DDU

  9. Jay @ the expat invesotr

    I did $562 this month, well keep up the good work. Although you didn’t receive anything this month hopefully that will change next year. It will take time but I’m pretty sure you can do it. Good luck

    1. Dividends Down Under Post author

      Congrats on (what seems like) a good month Jay. Maybe next year we will receive something, but even if we don’t the yearly total will be increasing 🙂

      Mr DDU

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  11. Dividend Diplomats

    Interesting that Australian companies do not pay a dividend in August. I guess you can’t really earn dividend income in a month where there are no companies paying a dividend. At least your dividend income summary article was pretty easy to write haha How excited are you for your September update?

    Bert

    1. Dividends Down Under Post author

      That’s right Bert, what can we do? There are 1 or 2 REITs that we’re interested in that do pay in August, so we’ll eventually fill this hole in, but it’ll always be a small month compared to the other ones.

      We are very excited for September and particularly October, we should get over $100 for the first time.

      Mr DDU

  12. timeinthemarketblog

    I’m not too worried about having a particular month be low or $0 as long as the overall annual income eventually covers your expenses. If Australian companies mainly pay in certain months then you’ll just have to budget that money across the other months. It’s the same thing with investing in mutual funds or ETFs in the US. Most of them don’t pay monthly so you’ll often get quarterly payments with December being your biggest month.

    1. Dividends Down Under Post author

      I completely agree TITM, even now we have our finances set up as an annual budget – sometimes we have cashflow positive months and sometimes they’re cashflow negative. We will make it work. We could make it work if we received all our dividends in just ONE month, if we had to.

      Mr DDU

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