What A £470,000 Dividend Portfolio Paid Me This Month: Passive Income May 2024
Рет қаралды 24,340
2 ай бұрынIn this video I reveal my monthly passive income from share dividends and Premium Bond Prizes in addition to showing what I'm buying and selling. I also discuss the National Grid rights issue.
Current holding value in pounds of the companies which paid dividends this month..
BAT (9.1k), Haleon (5.6k), Lloyds (9.8k), LSEG (4.0k), Aviva (6.7k), Croda (8.2k), Greencoat Wind (10.2k) Premium Bonds (50k maximum allowed)
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Disclaimer
This video should not be construed as investment advice. Investments can fall and rise. Capital at risk.
@TheCompoundingInvestor 2 ай бұрын
How is your investing journey going?
@TheExcetto 2 ай бұрын
Started to look at some companies like Porvair and Intertek, also stung quite hard by the NG downturn last week.😢 but looks like it’s up again
@BoothferryLad 2 ай бұрын
I have only just started this April and have £400 invested over 7 diverse companies, expecting my first small dividend payment this month. Your channel has been a huge help and motivator for me.
@TheCompoundingInvestor 2 ай бұрын
@TheExcetto Yeah, it was not expected that a company like NG would tap their shareholders for cash. The shares dropped quite heavily two days in a row. The sharp upturn on Friday suggests the initial drop may have been a bit of an overreaction and bargain hunters are stepping in.
@TheCompoundingInvestor 2 ай бұрын
That's great to hear and I wish you all the best on your investing journey.
@johnc799 2 ай бұрын
Been adding to my NG holding with the discounted share price and taking up the rights issue
@simonruddle6511 2 ай бұрын
Thank you for your latest update. I too have bought more National Grid shares as like you, I think that the market has over-reacted. Fingers crossed for the future!
@TheCompoundingInvestor 2 ай бұрын
Yeah such a dramatic fall two days in a row when the news was announced. All the best on your journey
@jeromegudgeon 2 ай бұрын
Great video. Monstrous month with BAT, Aviva, Phoenix, Lloyds, Game and Blackrock World Mining plus a few others.
@TheCompoundingInvestor 2 ай бұрын
Excellent work Jerome. Aviva seems to be having a decent year.
@venturi210 2 ай бұрын
I think the National Grid has made a good decision to improve the electrical infrastructure in the country. It shows a forward thinking company and as such, I will be taking full advantage of the rights issue as well. My dividends are down slightly from 2023, mainly due to poor performance from Maersk that is down to issues outside of it's control. But my journey is progressing. Thank you for the encouraging videos.
@TheCompoundingInvestor 2 ай бұрын
Thanks so much. Yeah I'm a real fan of NG and when I saw the shares fall sharply two days in a row with no extra news coming out I thought it was a bit of an overreaction. Should do well in the long term.
@davideyres955 2 ай бұрын
@@TheCompoundingInvestorit’s the rights issue they are doing to raise money to invest in more infrastructure for the increased demand form EVs and heat pumps.
@TheCompoundingInvestor 2 ай бұрын
@davideyres955 yeah I thought EVs would have something to do with it
@pickashole 2 ай бұрын
@@TheCompoundingInvestorI've taken advantage to.. So much so that NG has jumped to the top of my holdings 😊
@decentwig5648 2 ай бұрын
I've been scooping up National grid as well and took up the rights issue option. Might go for some more if it drops again on the dividend date.
@infour44 2 ай бұрын
Great share and it’s Vanguard Dividend date soon :) Agree re VUSA v VWRL or SPXP v MXWS
@duncanemery4303 2 ай бұрын
My hero and mentor
@alistairpenny5808 2 ай бұрын
Well done with growing that dividend my journey is starting to progress £294.67 in dividends and £150 on the premium bonds sold tesla and bought Greggs, Haleon, Diageo, Associated British Foods and finally National grid like it when there cheap. So the journey continues roll on June
@TheCompoundingInvestor 2 ай бұрын
Great progress Alistair. Mounting up nicely
@OH2023-cj9if 2 ай бұрын
My shares have been rubbish, but I had £800 from premium bonds since November!
@TheCompoundingInvestor 2 ай бұрын
Well done on the premium bonds. Excellent result
@mattsennett 2 ай бұрын
I too took my full allocation of the NG. rights issue and plan on adding more too. £250 for me in May also and all the best of luck in the June draw 👍🏻
@TheCompoundingInvestor 2 ай бұрын
Excellent work and thanks Matt
@vincentlewis6973 2 ай бұрын
Always enjoy watching a good put together video of someone killing it with exceptional dividends 😊
@andrejackson3971 2 ай бұрын
I saw the NG rights issue pop up in my Freetrade app watching this video helped me to get a better understanding on what’s going on. Thanks for sharing
@TheCompoundingInvestor 2 ай бұрын
You are welcome. Thanks for watching
@BobMc87 2 ай бұрын
I'm the same, I had it pop up on free-trade, still not really sure what it means. Can I ask you, Do you have a ETF accumulator with free-trade?
@andrejackson3971 2 ай бұрын
@@BobMc87 Haha. i don’t have ETF accumulator
@inthetrencheswithcas1762 Ай бұрын
Mate love from Australia, I am addicted to your humour with the Goats as well as your raw cash thrown in slow motion lol
@TheCompoundingInvestor Ай бұрын
Thanks my friend, it’s great to get feedback. All the best.
@DreamClean Ай бұрын
As an early career teacher, you're an inspiration to me. I'm not doing dividends but I've got 130k in FTSE Global All Cap. Starting savings in 2016 and investing in 2019.
@TheCompoundingInvestor Ай бұрын
That’s a great ETF to have. If I started again from scratch I’d probably have most of my money in something like that.
@user-xd6eu9fh9i Ай бұрын
Thanks for your reply. Really appreciate all the work you are doing on your channel. Wish you continued success!
@TheCompoundingInvestor Ай бұрын
Thanks so much. Great to get feedback. All the best on your investing journey
@davidmacphee5449 2 ай бұрын
Yes, had a very busy month for dividends too.
@leehurley7564 2 ай бұрын
Great video. Your getting close to £500,000 now big milestone that worth toasting. This month is my biggest ever so I'll have the cash cow hat on like Gratitude investing got to put my last few in and will be just under £200 May is usually my best month September comes a close second. I should easily beat my target of £2 A day this year so might be setting a new one before the yea is out thanks as always for the video take care
@TheCompoundingInvestor 2 ай бұрын
Excellent progress indeed. £200 is a very decent sum. Onwards and upwards! All the best
@LegalCommander 2 ай бұрын
National grid going lower is absolutely wonderful, I was shocked at first but after thinking rationally I saw the silver lining 💪💪
@TheCompoundingInvestor 2 ай бұрын
Yep it fell 10% on the announcement which is fair enough but then another 10% on the second day with no further news emerging. That sounds like a bit of overreaction so I bought in immediately
@cheepchips 2 ай бұрын
The Fund raiser increased outstanding shares by around 30% and the stock only dropped 26%. I find this quite reassuring as it could mean buyers have stepped in.. could also be a dkb though 😅
@colinuk1984 2 ай бұрын
Great video. Just brought some more Premium Bonds this morning ❤
@TheCompoundingInvestor 2 ай бұрын
Excellent. Good luck in future draws
@matteden7535 2 ай бұрын
Glad you are doing well... My portfolio after a terrible year last 12 months has recovered recently my PB continues to massively disappoint...
@TheCompoundingInvestor 2 ай бұрын
Yeah premium bonds can be so variable. All the best in future draws.
@matteden7535 2 ай бұрын
@@TheCompoundingInvestor I am surprised that you do not look at Reits if interested in frequent dividend payments
@ErikaB4 2 ай бұрын
Great video as always! Have you considered doing another share picking experiment this year? I loved watching those videos and maybe we would be better at recommending 10 companies then last time.
@TheCompoundingInvestor 2 ай бұрын
Thanks for the suggestion. I might give it another go at some point and perhaps change the way I buy the shares e.g. instead of selecting the most popular choices, I would try to include everyone’s choice in proportion to popularity. I could even extend the choices to the entire FTSE 350 rather than just the 100.
@user-zt1sx1xy5r 2 ай бұрын
🎉🎉 your journey is amazing ! Thank u for motivating me in my journey ! 🎉 definitely I will buy national grid this week ! ❤
@TheCompoundingInvestor 2 ай бұрын
Thanks for your kind comments. All the best on your investing journey.
@ooTheRustySheriffoo 2 ай бұрын
I've been watching your content for quite some time now and am pleased to see you grab an ETF. I'd be very interested to hear your reasoning for buying into VWRL and not something like FWRG (Invesco's new FTSE All-World ETF - Acc), especially as this has a considerably lower fee of just 0.15%. Best regards.
@TheCompoundingInvestor 2 ай бұрын
With my ETFs I prefer to buy distribution ETFs as opposed to accumulating versions as I like to choose where the dividends go. However 0.15% seems like a very good rate indeed. To be honest I didn't give it too much thought and just went with Vanguard as I already have VHYL with them inside the ISA.
@ooTheRustySheriffoo 2 ай бұрын
@@TheCompoundingInvestor Gotcha - I thought that might be your reasoning 👍🏼 I guess going forward, it'd be interesting to get the calculator out to see what your gain in freedom of dividend distribution would be over the losses incurred by higher fees, especially over the long run. Having said that - with the freedom to distribute your dividends you get the opportunity to pick some bargains which you wouldn't otherwise have the capital for... Stocks & Shares are a fabulous thing indeed!
@MrTTar 2 ай бұрын
I personally have VWRL as the central core of my portfolio (typically around 25-35% of total value), as it helps ensure that I track "the whole market" regardless of my other investment decisions. However, one thing to keep in mind is that given VWRL has 61.6% exposure to the USA, there will be heavy overlap with your S&P500 ETF - meaning any future US stock market correction will have a larger proportional impact.
@TheCompoundingInvestor 2 ай бұрын
I agree with the overlap with the S&P500 and VWRL hence it’s taken me so long to pull the trigger on it. I don’t this however as around 90% or so of my portfolio is U.K. based at the moment. I listen to the Pension Craft podcast and there was a recent episode on the S&P which convinced me to buy an All World ETF like VWRL. Apparently it performs better than the S&P500 over the very long term and is far less volatile.
@funmiogunlana2316 2 ай бұрын
Hello, can I ask why did you opt for VRWL instead of VRWP?
@TheCompoundingInvestor 2 ай бұрын
@funmiogunlana2316 VWRL pays dividends as cash. VWRP auto reinvests. I like to choose where the dividends go.
@funmiogunlana2316 2 ай бұрын
@@TheCompoundingInvestor alright, thank you for your response
@krzysiekrog5103 2 ай бұрын
My favourite channel about UK dividends!
@TheCompoundingInvestor 2 ай бұрын
Thanks so much
@SimoneInvests 2 ай бұрын
I agree.
@DestinationWealth1 2 ай бұрын
It is. Good to follow along with someone at a simar stage to myself on their wealth accumulation journey.
@malcolmbirkett1347 2 ай бұрын
Feeding the goat , i like it , this month i have opened position in Hsba, Rs1 group and segro on the trading 212 platform. Thanks for the update 😊
@TheCompoundingInvestor 2 ай бұрын
Thanks Malcolm and all the best.
@imranpatel9087 Ай бұрын
Great vid. What platforms are you using to buy shares? Trading 212? I'm a newbie not sure which one to use
@TheCompoundingInvestor Ай бұрын
Thanks Imran. I use Barclays Smart Investor but they are very expensive. I'm reluctant to change now in case anything goes wrong with the transfer especially where ISAs are concerned. Much cheaper options out there such as Trading 212. For just purely ETFs then InvestEngine is worth considering. Good luck on your journey.
@stevethepug6035 2 ай бұрын
Just payed the mortgage off at 41 years old an have a buy to let payed off as well. Ive just started to put £1666 a month into vanguards s&p 500, FTSE all world. And FTSE 100 just hope im doing the right thing not really done this sort of thing before just going to see how it rides out. Would you say im doing the right thing at giving it a go
@TheCompoundingInvestor 2 ай бұрын
First of all, well done indeed it’s a great position to be in. Obviously I can’t give investment advice but history shows that investing for the very long term in a globally diversified portfolio usually does well. You just have to be prepared for occasional volatility when it comes. At the start of the pandemic my portfolio crashed from 230k to 170k in what seemed like a few days. I carried on investing as normal. Not everyone would, some will panic. In the 1970s the FTSE fell 70% in one year! If you can mentally cope with that kind of short term shock and think about the long term (e.g. decades) then it’s probably right for you. When the market recovers after a crash, the speed of recovery can be surprising. It’s often best to remain in the market at all times.
@stevethepug6035 2 ай бұрын
@@TheCompoundingInvestor thanks for the replay. I'll just keep maxing my ISA out every year
@darrenforward8277 2 ай бұрын
When you say reinvest do you put the dividend from "Company A" back into "A" or just what you think needs topping up. Thanks
@TheCompoundingInvestor 2 ай бұрын
I like to choose where the money goes so the cash remains on the platform until it reaches £1000 and then I shove it into a company of my choice. Much more interesting that way and it also helps to rebalance the portfolio
@trancekingpj 2 ай бұрын
I just want to say thank you for sharing your journey. I use your videos as a means to prove how compounding can work for the "average Joe" (so to speak) when encouraging my kids to invest. It's all very much "look at what this guy has done over the last 15 years" to show them what they can achieve with regular investing. Personally I'm pretty late to the journey myself as I'm about your age (thereabouts at least) but am playing catch up where I can. Even if I can get an income of a few hundred £s a month by the time I retire then it will have been worth the effort.
@TheCompoundingInvestor 2 ай бұрын
Thanks so much. Yes unless we are Warren Buffett we all wish we had started compounding earlier. He started his investment journey aged 11
@trancekingpj 2 ай бұрын
@@TheCompoundingInvestor I've learnt his story over recent years and am hoping that he will be motivation for my children on their investing journey. Even if they only get to 1% of what he's done I will consider them to have done amazingly well, plus that sort of sized portfolio for them will give them financial freedom in years to come.
@TheCompoundingInvestor 2 ай бұрын
Absolutely. Time is a powerful force when it comes to compounding.
@versaceviper9798 2 ай бұрын
Informative as always! I only hold VWRL and VHYL. Thinking of adding an AI ETF into my portfolio, what are your thoughts on BOTZ?
@TheCompoundingInvestor 2 ай бұрын
Thanks, ROBZ is not one I’ve heard of. I’ll look it up
@versaceviper9798 2 ай бұрын
@@TheCompoundingInvestor Thanks, I’d definitely be interested in your views. I personally think AI can only get better as it evolves, so getting in as early as possible is always going to be a benefit.
@gianlucapagnoni283 2 ай бұрын
I sold all my NG holding when the price went down to 10£ and now I'm buying it back at 8.30£-9£, I saw it coming when they announce their plan, I think it will go up again till ex dividend date and then drop a bit...
@TheCompoundingInvestor 2 ай бұрын
I’m certainly keeping a close eye on it. Will buy more if it falls significantly
@alexanderedwards1269 Ай бұрын
Would you recommend buying the standard plan on freetrade even if you're just starting out? I've gone and paid for the subscription but questioning why since I'm well under my isa allowance
@TheCompoundingInvestor Ай бұрын
Freetrade seem to charge for an ISA but with Trading 212 there does not seem to be a charge
@danielli9569 2 ай бұрын
O man! You are my motivation!! After watching your videos only I have started investing 2 years ago!! Please keep posting your videos regularly
@TheCompoundingInvestor 2 ай бұрын
Thanks for the feedback and good luck on your journey. I post every 2 weeks or so. Would like to do it more often but with a busy full time day job, time is limited.
@DanielPemberton-jv7vt 2 ай бұрын
What’s the plan for the cash? Nice nest egg you’ve got there, but why wouldn’t you use that for your NG. Is it just that 50K is what you feel comfortable with or will you deploy some when the time is right ? Ps I think your UK companies will have a great year !
@TheCompoundingInvestor 2 ай бұрын
My NG shares are within the ISA and I've already used up the 20k allowance. I cant put in any extra funds to pay for the NG rights issue so therefore I trimmed a share which has done very for me over the years in order to generate funds (2.5k) within the ISA. I'll buy back the AZ shares with any future dividend money over the next few months.
@ayhansimsek8506 2 ай бұрын
Thanks for sharing this video with us
@TheCompoundingInvestor 2 ай бұрын
You are welcome. Thanks for watching
@BobMc87 2 ай бұрын
Another great video! I got the NG update, and bought shares then. Has the discount still to come?
@TheCompoundingInvestor 2 ай бұрын
Thanks. Yeah discounted shares to come
@BobMc87 2 ай бұрын
@@TheCompoundingInvestor Excellent! Much like yourself, I'll trying adding to my shares, should benefit in the long run! 🤞🏻🤞🏻🤞🏻
@gratitudeinvesting 2 ай бұрын
i think youll get bigger payouts on your nsandi to balance things out later in the year. I missed out on the ng shares by 1 day. All the best bro.
@TheCompoundingInvestor 2 ай бұрын
Thanks my friend
@ldn876 2 ай бұрын
Another amazing video.
@TheCompoundingInvestor 2 ай бұрын
Thanks so much
@GGletgo1 2 ай бұрын
Have you heard about HL getting an offer to be bought by a private equity group? They rejected the offer. What are your thoughts about that?
@TheCompoundingInvestor 2 ай бұрын
Thanks for letting us know, I wasn't aware of that. A very decent platform from what I know about HL. More expensive than many but better customer service. Lets hope this continues
@user-xd6eu9fh9i Ай бұрын
Thanks so much for your excellent videos! Do you have any thoughts about Vanguard's distributing vs accumulating ETFs? Is it more efficient to allow an accumulating ETF to automatically reinvest the dividend, rather than to manually invest a dividend paid quarterly? It seems to be a relatively new option from Vanguard. Not sure if anyone else has noticed this?
@TheCompoundingInvestor Ай бұрын
Many thanks. Yes technically it’s more efficient to have an accumulating ETF but some like to decide where dividends go. I suppose it’s a personal choice. Also if the ETF is outside an ISA you will still have to pay tax on the dividends if you exceed the allowance of £500. Even with an accumulating ETF you have to work out what the dividends are which can be complex as you are not paid them in cash
@user-xd6eu9fh9i Ай бұрын
Really appreciate your reply, thank you. I don't know how quickly Vanguard, for example, reinvests their accumulating ETF dividends (e.g. ?monthly, ?quarterly etc). There is often a significant lag between the declaration date & payment of dividend/distribution. I wondered, therefore, if there is greater potential for compounding over time with accumulating ETFs (held within an ISA) compared to distributing ETFs paying monthly/quarterly dividends. I could see how the accumulating ETFs might potentially offer more rapid dividend reinvestment, and therefore greater compounding over time.
@TheCompoundingInvestor Ай бұрын
I would have thought that dividends are paid at the same time for index tracking ETFs e.g. quarterly. Distributing versions pay you cash and accumulating versions still pay cash but it’s automatically invested back in to buy more shares. The costs would be lower for the accumulation version and if you don’t actually need the cash in the hand or you just want to reinvest in the same ETF then the accumulation version is probably better from a trading fee perspective on most platforms
@brimz1 2 ай бұрын
thank you !
@TheCompoundingInvestor 2 ай бұрын
You are welcome 🙏🏻
@darrenmason4412 2 ай бұрын
So at what point did you stop paying into your portfolio and think I going to just reinvest my dividends only great insight thanks 👍
@TheCompoundingInvestor 2 ай бұрын
I have a full time day job so any spare money continues to be invested. Having the passive income does give you options to go part time at some point or even retire early but I’m currently enjoying the day job at the moment
@stuarthoffman1633 2 ай бұрын
When you investing extra cash each month do you top up you best performing stocks or start investing in a new one?
@TheCompoundingInvestor 2 ай бұрын
Occasionally a new one, or one that has fallen significantly and which I see as a bargain. If I can't see any bargains then I'll just add to an index tracking ETF.
@sydneylam19 2 ай бұрын
How do you face price volatility after buying a lot of shares for dividend stocks? I lost quite a lot due to frequent transaction ...
@TheCompoundingInvestor 2 ай бұрын
I don't usually buy in amounts less than £1000 so the transaction costs are quite small in comparison. I don't worry too much about short term price fluctuations because you don't make a profit or a loss until you actually sell the shares. In the long term they tend to rise.
@daneska1975 2 ай бұрын
Where can I buy Aviva, ticket code is suposed to be AV but I can’t see to find it in my brokerage acc. I’m from the us
@TheCompoundingInvestor 2 ай бұрын
It’s not listed on the US stock exchange. Perhaps that’s the reason you can’t find it on your particular account
@dubsdolby9437 2 ай бұрын
Good shout on National Grid. i managed to get in at £8.34 .🙂 10k
@TheCompoundingInvestor 2 ай бұрын
I got mine for £8.99 2K. Keeping an eye on it in case there are further drops
@dubsdolby9437 2 ай бұрын
@@TheCompoundingInvestor yes may drop closer to ex day 👍
@ianc64 2 ай бұрын
Yeh brought NG. the day before the drops, not good, next purchase xlon:Land with money I have in accounts , £500 monthly investment and LLoy, KGF & TSCO divs, unless you can think of something better?
@TheCompoundingInvestor 2 ай бұрын
That's unlucky with the NG purchase. I've had similar situations e.g. with Croda, probably bought that at the worst possible time. If I can't see bargains anywhere I'll probably just add more to VWRL and build that one up a bit more.
@ianc64 2 ай бұрын
@@TheCompoundingInvestor ok here's my thing, I like dividends with VWRL the Yield is low, I normally look for 4% + you have a £470k portfolio, I have a £180k so trying to build up before I retire in 5 years, £150k inside ISA the rest in normal account.
@madzyadzy07 2 ай бұрын
Your premium bond shares aren’t compounding over time if you already have the max invested?
@TheCompoundingInvestor 2 ай бұрын
This is true but the prizes compound when I put them into the stock market. Premium bonds are my emergency fund and the 50k is kept out of the market on purpose. We never know what is around the corner and I would hate to be forced to sell shares during a market crash
@funmiogunlana2316 2 ай бұрын
@TheCompoundingInvestor can I ask, why did you opt for VRWL (income) instead of VRWP (accumulating)?
@decentwig5648 Ай бұрын
I imagine it's because psychologically seeing the dividends come in is better. He talks about this a lot. Plus it would be hard for him to display in these videos.
@TheCompoundingInvestor Ай бұрын
This ETF is kept outside the ISA and therefore there will eventually be dividend tax to pay in future years as the amount I hold increases. VWRP would be difficult to work out the dividend tax which still has to be paid despite it not paying a dividend as cash
@chrisspice7647 2 ай бұрын
Love the video’s, very inspirational and have helped me to start investing! Can I ask how much money you were putting in each month into the portfolio when you started? I don’t have the best job or the most disposable income so just wanted to know what I can expect? Thanks!
@TheCompoundingInvestor 2 ай бұрын
That’s great to hear. Thanks so much. All the best on your journey
@chrisspice7647 2 ай бұрын
Thank you. Sorry I don’t know if you missed the second part intentionally or not. I know now it was a bit intrusive, so apologies if so. Thanks for the reply and keep up the videos! 😊
@TheCompoundingInvestor 2 ай бұрын
Sorry my friend I completely missed the last part as I didn’t scroll down. Started with a lump sum of £5000 to get the ball rolling in Jan 2009, then intended to put between 500 to 1000 per month initially. As the years went by wages tend to go up. I think the average is 1.4K of new money in per month over the 15 years. I did pay off the mortgage before I started which meant I could focus on investing without other financial commitments
@chrisspice7647 2 ай бұрын
@@TheCompoundingInvestor No that’s okay, no worries at all. Yes I watched the mortgage video as well and as someone who has only recently got a mortgage in the last couple of years I found that very interesting and it certainly is a brilliant idea! Thanks so much. Yeah I’m going to try put as much disposable income in as I can and I’d even be happy with half of what you’ve achieved! Thanks again!
@macsidia Ай бұрын
A bit late for my May report, £35 interest and £200 from Ernie for a total of £235, I’ve added some QYLP which is the GBP version of the high paying QYLD monthly dividend.
@TheCompoundingInvestor Ай бұрын
Thanks for sharing your totals
@TROZJAN 16 күн бұрын
Looked up cross says 2.4 yield on trading 212
@Zaxoosh 2 ай бұрын
Just started my journey! Wish me luck!
@TheCompoundingInvestor 2 ай бұрын
Excellent. All the best of luck on your journey my friend
@DestinationWealth1 2 ай бұрын
I think luck is underestimated in the investing game. You can do all the research in the world but a little bit of good luck in the markets can go a hell of a long way to you reaching financial freedom. All the best.
@lupin8750 2 ай бұрын
Curious to know when you say you keep certain buys outside of the ISA do you put it in a SIPP or a GIA?
@TheCompoundingInvestor 2 ай бұрын
GIA. I put the lowest dividend payers there and try to keep the dividends below the allowance. Will be more difficult now however with the level reduced to £500. Might be ok for the next year or so
@lupin8750 2 ай бұрын
@@TheCompoundingInvestor Is there a reason you don’t use a SIPP instead?
@TheCompoundingInvestor 2 ай бұрын
@lupin8750 it probably would have some benefit but I already have a defined benefit work pension which I contribute quite a lot to.
@davideyres955 2 ай бұрын
@@TheCompoundingInvestorpensions are quite a good investment as you can pass them on tax free to your inheritance.
@kiki_cards64 2 ай бұрын
Just found your channel do you have a video about how you started?
@TheCompoundingInvestor 2 ай бұрын
This is probably a good one which shows how I set small targets along the way.. Dividend Investing For Beginners kzfaq.info/get/bejne/qLVpo7Z5zrqYgGQ.html
@user-kf9fy3dz7z 2 ай бұрын
Have you thought about investing in growth shares that pay no dividend. I brought shares in Rolls Royce in March and if i sold them tommorrow i am up 34%. That would a be a much better return than even the highest paying dividend such as BATS or Phoenix group holdings!
@TheCompoundingInvestor 2 ай бұрын
Rolls Royce is the largest holding in my portfolio. I started buying it when the price dropped below £1 and kept buying as it went lower. It’s had an amazing run recently.
@user-kf9fy3dz7z 2 ай бұрын
@@TheCompoundingInvestor So you own all these shares all brought on a moderate teaching income. OK. Lol+
@TheCompoundingInvestor 2 ай бұрын
Yes thats correct but I invested a much smaller amount than my porfolio is now worth. Compound interest does a lot of the work for you. It’s taken 15 years, definitely not a get rich quick scheme. It’s more to do with consistent habits over a long time and less to do with how much you earn. Basically the principle is to spend less than you earn and invest the rest and don’t squander money on rubbish which takes money out of your pocket. Instead buy assets which put money back into your pocket. I also made sure I was totally debt free before I started this portfolio. The video below shows how I did this.. Totally Debt Free With An Ordinary Job! kzfaq.info/get/bejne/qZOJo7GZu9mrf58.html
@philipashton1443 2 ай бұрын
I received £700. In dividends last year. The dividend allowance was £1000 But has been cut to £500 for 24/25.
@TheCompoundingInvestor 2 ай бұрын
Yeah the allowance outside the ISA is really small now. This makes having an ISA so important
@wouta2553 2 ай бұрын
At 0:36 in your video, you show what company stocks you own. Can you tell me how many % each company take up your portfolio?
@TheCompoundingInvestor 2 ай бұрын
The following video will have all the info you need. It is the most recent porfolio update. I’ll be doing another at the end of June. Revealing My Entire £450K Investment Portfolio: Quarterly Update kzfaq.info/get/bejne/pa6CgZh4qduXomg.html
@wouta2553 2 ай бұрын
Cool that you responded! Thank you!
@michaelmayes9689 2 ай бұрын
I like the new opening of throwing pound coins away, ( loads of money ). I hate to report this month was the best ever, a grotesque amount of money £2 short of 2 k honest i could not believe it had to have a recount. This year my goal was to average at the end of my investment year 1k a month, I am happy to report the dividends smashed it, by averaging just over 1 k per month my investment year ended the 31st of May, the power of compounding your investment income. Now i am in a quandary this month i said i would not invest anymore from june onwards, due to my age. While the truth is i really don't think i can stop.
@TheCompoundingInvestor 2 ай бұрын
Awesome work Michael. That’s a decent sum indeed for a month. When you see the dividends increase it can be very difficult to stop investing. It’s quite addictive. All the best.
@Norfolkpaul 2 ай бұрын
Nice video 😊 and well done 👍
@TheCompoundingInvestor 2 ай бұрын
Thanks so much Paul! Have a great weekend.
@Norfolkpaul 2 ай бұрын
@@TheCompoundingInvestor all is well 🥳
@Blackspur276 2 ай бұрын
Are you not buying Diageo anymore? Seems to get going down!
@TheCompoundingInvestor 2 ай бұрын
I’ve bought quite a lot of it over the last year but I’ve used up the ISA allowance and a only tend to buy shares with low dividends outside. I’ll make an exception if I see a huge sudden drop like NG for example
@thenoodlebuddy 2 ай бұрын
Do you manage to max out your ISA each year? If so you must be on an actual decent wage or live extremely and I mean extremely frugally. To max out an ISA you'd need to be putting in £1,666 per month which for many peple (me included until recently) is more than their take home pay in a month. Well done for sticking to it all these years though I do like your videos
@versaceviper9798 2 ай бұрын
Don’t forget he’s now making close to £1300 a month in just dividends. Maxing out an ISA at this point has to be exceptionally easy on any salary.
@TheCompoundingInvestor 2 ай бұрын
Yes I manage to max out the ISA each year. I made sure I paid off the mortgage before starting this portfolio so this gives me more money each month to invest. I also live very frugally and have no debts. I kept my last car for 15 years.
@TheCompoundingInvestor 2 ай бұрын
@versaceviper9798 Dividends don’t count towards the ISA limit because they are already inside the ISA wrapper. You can still put an additional 20k in.
@versaceviper9798 2 ай бұрын
@@TheCompoundingInvestor Ah! Apologies, for some reason I thought this was in a GIA and you transfer to the ISA each year. (Must be from a previous video I saw)
@bosshog36 2 ай бұрын
The tossing money in the box is always nice to see 👍
@TheCompoundingInvestor 2 ай бұрын
Long term investing can be rather dull so I thought I’d throw in some envelopes, a box and a couple of goats to spice things up 🐐 🐐 ✉️ ✉️ 📦 😂
@boyla87 2 ай бұрын
Gotta work on the aim of the 1300 though ;)
@redminote7334 2 ай бұрын
When I first saw your videos god knows when, I thought those companies are actually sending these envelopes to you, lol. It must be some work to set it all up for a video
@TheCompoundingInvestor 2 ай бұрын
@redminote7334 Yeah it does take a bit of time but hopefully it’s more motivating to see actual notes than just numbers on a spreadsheet
@YodaMart 2 ай бұрын
I’ve taken up the offer of additional NG shares and continue to buy at lower levels. I’m not sure if it’s fear mongering but some people are saying that Labour are thinking to make the NG public once again as part of their “Great British Energy” idea. Does that make you nervous or do you think it pure speculation?
@user-jh2le9xk6k 2 ай бұрын
Hi. How do you take up the offer of NG additional shares? Thankyou
@YodaMart 2 ай бұрын
@@user-jh2le9xk6k Depends what platform you are with. I have NG shares with Trading212 and Freetrade. Freetrade aren’t set up to allow you to purchase the shares, so they will sell your rights and give you the proceeds from the sale. Trading212 sent an email and messaged in app giving you the option to take them up on the offer. Depending upon which platform form you are with, if you havent heard anything then message their support team and see what they say.
@TheCompoundingInvestor 2 ай бұрын
It’s possible but they will probably have enough on their plate with other more pressing issues and I’m also not sure where they will find the billions to nationalise NG.
@sammytsang7479 Ай бұрын
With BAT selling tobacco and vapes, are they going to be around in 30 years time?
@TheCompoundingInvestor Ай бұрын
I guess just like Shell and BP they will have to adapt. Shell and BP are moving towards renewables. There is talk of BAT / IMB exploring caffeinated drinks / patches of some kind.
@sammytsang7479 Ай бұрын
@TheCompoundingInvestor I wonder whatelse they could branch into.
@russellpetrie119 2 ай бұрын
i was gonna ask what happened to ng didnt know what was going on wondered if it were to do with energy bills going down buy the dip
@TheCompoundingInvestor 2 ай бұрын
Unfortunately they are tapping their shareholders for extra cash but if it generates value in the long term then that’s a positive thing.
@patelparth 2 ай бұрын
Please suggest a self employed website for accounting I earn £ 25400 from cfd index trading. How to file capital gains tax? Can I move 20000 money to isa account?
@TheCompoundingInvestor 2 ай бұрын
Maybe look at the KZfaq channel “Kiran Kaur” she specialises in tax and her videos might be helpful
@BenzoSWay 2 ай бұрын
Great video just always using the same stock videos
@TheCompoundingInvestor 2 ай бұрын
Thanks for the feedback. I agree. I’ll try to vary it a bit more going forward.
@DisabledTurtle7 2 ай бұрын
How do you think the election will effect UK shares? Are you worried if Labour get in?
@TheCompoundingInvestor 2 ай бұрын
I really have no idea. Will be good to see the details of their manifestos. Hopefully the British ISA will still be introduced but no guarantees
@collectables6665 2 ай бұрын
Love the vids been watching for about 2 to 3 years now and you never disappoint,but where's the pig gone on the thumbnails. Bring the PIG back pls
@TheCompoundingInvestor 2 ай бұрын
Thanks and I'll make sure the pig returns :)
@iantcroft 2 ай бұрын
Are share dividends tax free? I thought this tax year dividend allowance was £1k and pay tax on over that? Thanks.
@TheCompoundingInvestor 2 ай бұрын
Inside a stocks and shares ISA, all dividends are tax free. If you are not using an ISA then you can only receive £500 in dividends before paying tax in the current tax year
@iantcroft 2 ай бұрын
@@TheCompoundingInvestor I hadn’t realised it was stocks and shares ISA. Even better that they are tax free! I want to start investing but yet to take the leap! Before watching your channel I had almost no knowledge on investing. Currently just have savings account (paying tax on) and an isa. I could do with a tutorial on the trading 212 app (is that what you use?) Thanks.
@TheCompoundingInvestor 2 ай бұрын
@iantcroft I use Barclays Smart Investor but they are very expensive but I’ve been with them for 15 years so reluctant to change now. There are much cheaper options out there like Trading 212. For ETFs only then InvestEngine is quite good
@iantcroft 2 ай бұрын
@@TheCompoundingInvestor thanks, will see if I can find any tutorials
@TROZJAN 16 күн бұрын
Need to more proper info on these companies I don’t always say the ticker symbols or show companies on trading 212 or something
@ewanbatey8765 2 ай бұрын
What are your thoughts on VHYL?
@TheCompoundingInvestor 2 ай бұрын
I hold it inside my ISA and add more when I can’t see bargains elsewhere. Gives a decent yield with global diversification.
@ewanbatey8765 2 ай бұрын
@TheCompoundingInvestor Cheers, I'm 19 and just starting investing, and it's pretty daunting
@user-jh2le9xk6k 2 ай бұрын
Hi. How do i take up the offer of addition NG Shares? Thankyou
@TheCompoundingInvestor 2 ай бұрын
What platform do you have?
@user-jh2le9xk6k 2 ай бұрын
Barclays like you
@TheCompoundingInvestor 2 ай бұрын
@user-jh2le9xk6k Make sure you have enough cash in the account. Click on your account and then scroll down to find a tab called “Overview”. Click that and you will see a menu. Click on Corporate Actions and you should see the NG rights issue
@user-jh2le9xk6k 2 ай бұрын
Thanks. Will have a look at that. Is there a closing date to do this? Thankyou
@TheCompoundingInvestor 2 ай бұрын
@user-jh2le9xk6k you have to choose an option by 6th June
@StuartHurry 2 ай бұрын
Hi, do you recommend a free dividend tracker app please?
@TheCompoundingInvestor 2 ай бұрын
I use a combination of the website dividend data and dividend max and I manually add the payment dates to a basic phone calendar app. All payments are recorded in an excel spreadsheet
@StuartHurry 2 ай бұрын
@@TheCompoundingInvestor Thank you I will give them a look. Just started investing in dividend stocks and need to keep track of them. I have the investing bug and I am really enjoying it!
@DanTheMan940 2 ай бұрын
How much did you start with in 2009? And how much do you invest per month?
@TheCompoundingInvestor 2 ай бұрын
Started with a lump sum of 5k as that’s all I had at the time. Then the aim was to put in between 500 to 1000 per month from wages after that. I had paid off the mortgage before starting this portfolio so that helped greatly. As time goes by, wages tend to increase so obviously now I invest more. The average amount of new money going in each month over the 15 years is 1.4K a month
@DanTheMan940 2 ай бұрын
@@TheCompoundingInvestor and that's including re investing dividends or just separate cash?
@TheCompoundingInvestor 2 ай бұрын
1.4K of money from wages going in
@nilsfranz123 2 ай бұрын
You are really a goat farmer 😄💜 love your videos
@TheCompoundingInvestor 2 ай бұрын
🐐🚜 😂 Thanks 🙏🏼
@B0jangle5 2 ай бұрын
Instructions unclear, I bought a farm.
@TheCompoundingInvestor 2 ай бұрын
😂 lol. Probably not a bad idea. Buffett bought one aged 14!
@easyBob100 2 ай бұрын
What's your yield on cost?
@TheCompoundingInvestor 2 ай бұрын
I showed this in the video. 6.1% currently
@easyBob100 2 ай бұрын
@@TheCompoundingInvestor Ah, I see it. Must of looked away at just the right moment lol.
@russellpetrie119 2 ай бұрын
ng has a big moat probabley worth a punt probabley take while like gsk but good long term turn around
@TheCompoundingInvestor 2 ай бұрын
Yes I think so
@travellingtom6091 2 ай бұрын
Wouldn't you be better with VHVG?
@TheCompoundingInvestor 2 ай бұрын
I buy VHYL which is equivalent to VHVG inside my ISA so that the high dividend is sheltered from tax. VWRL is bought outside the ISA as it has a lower dividend and therefore less of a potential dividend tax impact
@travellingtom6091 2 ай бұрын
@@TheCompoundingInvestor Ah thanks for the explainer. Appreciate it. 👍
@andrewstorm8240 2 ай бұрын
Is it tax free because your shares are in isa?
@TheCompoundingInvestor 2 ай бұрын
That’s correct
@DestinationWealth1 2 ай бұрын
Would be interested to know your age, if you don't mind revealing?
@lawrencer25 Ай бұрын
You shouid never ask a woman age 😂😂😂
@bigh3439 2 ай бұрын
Is the box for chess figures?
@TheCompoundingInvestor 2 ай бұрын
It’s not for any specific purpose. I just bought it online for the purpose of these videos.
@blockymcblockyface Ай бұрын
How is it tax-free?
@TheCompoundingInvestor Ай бұрын
In the U.K. we have a tax shelter called a stocks and shares ISA. There is no capital gains or dividend tax
@fishfinners 2 ай бұрын
Trig is down 30% this year?
@TheCompoundingInvestor 2 ай бұрын
Down 10% currently
@fishfinners 2 ай бұрын
@@TheCompoundingInvestor21%
@TheCompoundingInvestor 2 ай бұрын
Trig? As in the Renewables Infrastructure group? I’ve checked 2 different sources, yahoo finance and Google finance. At start of year it was £1.12 a share, now £1 a share so around 10% lower
@fishfinners 2 ай бұрын
@@TheCompoundingInvestorNo you are right I didn’t realise I held it for a while now. I am salty I lost a fair chunk of my portfolio.
@TheCompoundingInvestor 2 ай бұрын
Yeah I got rid of Trig recently and put the proceeds into Greencoat. We can never get it right every time. I’ve had plenty of shares which I sold at big losses. Would take me ages to list them all.
@OH2023-cj9if 2 ай бұрын
I've been really disappointed with a T212 ISA! Compared to a 5% cash ISA I have lost hundreds by copying a few PIEs from so-called expert investors. Dividends are very very low for average investors. I doubt I will continue with this as it's not worth taking the liss each year.
@OH2023-cj9if 2 ай бұрын
Loss that should be. The biggest payment I had was £25 from Apple, the rest were 4p, 80p, £1, all reinvested, but unless you have hundreds of thousands to put away, it's useless. The 5.2% on T212 is *Not Protected* so you take a risk.
@TheCompoundingInvestor 2 ай бұрын
I’m sorry to hear that. Investing is not for everyone. History shows that those who invest in an index tracking ETF for example the S&P500 or All World tend to do better than cash over the long term. By long term I mean decades. There is always volatility in the short term which can put people off. With dividend investing it takes time. My first dividend payment was only a few quid from Aviva, but I just kept going adding spare money in each month. Time is the important factor. I have been doing this for 15 years. Only ever had a an ordinary teaching job so not a high earner. I did work hard to pay off all debts however before starting the portfolio. Becoming debt free was more important to me than investing.
@Tom-hl7wc Ай бұрын
Are you paying tax on your dividends? Over £500 and you have to pay tax right?
@TheCompoundingInvestor Ай бұрын
I keep low or zero dividend payers outside the ISA to keep them below the £500 allowance. The higher dividend payers are within the ISA. When the dividends outside the ISA eventually exceed £500 then yes I’ll have to pay tax on them.
@Tom-hl7wc Ай бұрын
@@TheCompoundingInvestor how do you put your stocks in an ISA? I’m a plumber and I’m just getting started. I’ve invested in property up to this point because I understand it but now I’m looking to diversify. It’s quite a lot for me to get my head around. I know that I’m never going to understand it well enough to trade individual stocks well so I’ve only really invested in the S&P 500. But surely I’ll have to pay tax on income over £500? Edit - I’ve just been looking and it seems like I can open a stocks and shares ISA on the platform I’m using (trading 212) so am I correct in saying I can put up to £20000 a year into this and pay no tax on the interest?
@TheCompoundingInvestor Ай бұрын
Hi there, yes most platforms offer a stocks and shares ISA. Anything you buy inside the ISA is free from capital gains and dividend tax. An S&P500 ETF is very popular and historically does well over the long term. You can put £20,000 of new money e.g. from wages into it each year. No matter how much your portfolio grows to and no matter how much dividends are paid you can still put an additional 20k of new money in each year from your wages. But if you take any money out from the ISA and try to put it back in again then that will count as new money and will use up some of your allowance for that year. I try never to take any money out of it and just keep adding as much as I can for as long as I can.
@Tom-hl7wc Ай бұрын
@@TheCompoundingInvestor makes sense. Thanks for your time. I’ve been subbed for a while now. I like your editing it cracks me up whilst being informative. I’ve got a stocks and shares LISA as well because that seemed to make sense considering the 25% bonus
@shortclips9620 2 ай бұрын
Your dividend income per month is £500 a month less than if you just held all that money in Lloyds bank at 5% interest and paid 20% capital gains on it!
@TheCompoundingInvestor 2 ай бұрын
I think you are forgetting about capital growth of shares on top of the dividends payments. This year alone I’ve put 8k of new money in yet the portfolio has grown by over 60k in just 5 months. All tax free of course
@shortclips9620 2 ай бұрын
@TheCompoundingInvestor nice! Do you think you could incorporate that information as well as that will better reflect the true compounding effect and wealth gain of your portfolio!
@TheCompoundingInvestor 2 ай бұрын
@shortclips9620 This video was just about dividends. I do separate videos each quarter showing the complete portfolio and how it’s performing in terms of total return. The last one I did is below if you want the full picture. I’ll be doing another one at the end of June. Revealing My Entire £450K Investment Portfolio: Quarterly Update kzfaq.info/get/bejne/pa6CgZh4qduXomg.html
@scotmorley8526 2 ай бұрын
When do you plan to retire? I found retirement really difficult, not because of not having things to do, I had plenty of interests and hobbies to keep myself occupied, it was not having the spare cash, at the end of the month to keep investing. I think investing is an addiction, that can most likely get in the way, of when you should retire, just my personal opinion. Anyway great video, as always thank you.
@TheCompoundingInvestor 2 ай бұрын
You raise a really important and valid point which I honestly don’t have an answer to at the moment. The shifting away from the accumulation phase I suspect is going to be hard to do for sure. The ideal situation of course would be to not spend all of the passive income in retirement and still have some left over to invest and sort of carry on as normal but with much smaller amounts going in. At the moment I’m still enjoying the full time day job but if that changes then passive income does give me options to go part time for instance. I do have a workplace pension which I contribute quite a lot to and there is also premium bond income so hopefully I can carry on investing even in retirement. As you say it’s very addictive and also very interesting.
@redminote7334 2 ай бұрын
One must also put into consideration that life can turn at any corner, or even end suddenly. Balance is the key
@timlodge8267 2 ай бұрын
You could well be the wealthiest person in the graveyard.
@TheCompoundingInvestor 2 ай бұрын
For a comfortable retirement which could in theory be up to 30 years going with the commonly quoted figure you would need a 750k pension pot. I’m still far from that
@aac74 2 ай бұрын
All of your increase in dividends since 2018 has been wiped out by inflation (based on the bank of england inflation calculator). In that time the UK shares indexes are only up about 10%, thus capital gains wiped out by inflation too. These zero real returns should motivate you to look at a more broad based portfolio that includes US and other foreign shares, gold and bitcoin. One that can deliver real gains in a wider set of market conditions. e.g. since 2009 in conditions of financial repression (interest rates held below inflation) and massive QE liquidity, gold is up 300%. Bitcoin is up 2000% in the last 5 years and the Nasdaq is up 100%.
@TheCompoundingInvestor 2 ай бұрын
Up until about 2 years ago I couldn’t buy overseas individual companies on my platform and ETFs were not mainstream back when I started. The U.K. companies I invest in are global giants earning 80% of their revenue from abroad. These days I invest also in a couple of All World ETFs and over the last 2 years I’ve put more than 30k into my S&P500 ETF. Gold doesn’t actually produce anything and will not compound. Bitcoin is speculation and not investing. Nasdaq is at historically high valuation levels.
The Compounding Investor
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