The international dividend portfolio continues to reach new all-time-highs in euros and in US-dollars by end of September 2019. Total portfolio value in USD is 515,970 and 471,550 in euro.
Despite a presidential impeachment process, trade tensions between the United States, China, and Europe, slowing economic growth, particularly in Germany, and lack of clarity from the U.K. on its path to a Brexit, the European equities index ended Q3 in positive territory, up 2.63% (S&P Europe 350). Also, the U.S. equities recovered in September to end the third quarter on a positive note, with the S&P 500 up 21% year-to-date. Our International Dividend Portfolio gained 1.8% in September, compared to 1.87% for the S&P500.
Since inception in 2009, the portfolio has returned 270.6% in US$ and 370.8% in €, excluding reinvesting dividends.
The International Dividend Portfolio objective is to generate dividend income every month, based on international dividend growth stocks and over the long-term preserve and grow the invested capital. The total return is expected to follow the MSCI World index and a dividend growth rate between 4%-9%.
Holdings are rarely sold as long as dividend pay-outs are not cut and managed with a “buy-and-hold investor” mind-set. The International Dividend Portfolio contains mainly US and European stocks, so mature markets, but the related companies will often have exposure to emerging markets as well.
In 2009 the virtual International Dividend Model Portfolio started with €100,000 or $ 140,000 ,10 US dividend stocks and 5 European dividend stocks. The holdings value grew with an 14% annually year in euros and 12% in dollars, as you can see in the table below. Due to currency fluctuation, the European investor benefited more from the dollar holdings.
|Holdings Value (€)||Holdings Value ($)|
|Start 2009||€ 100,000||$ 140,000|
|End 2017||€ 378,000||$ 454,000|
|End 2018||€ 385,000||$ 441,000|
|Sep 2019||€ 471,000||$ 516,000|
Also, the goal of a dividend growth rate between 4%-9% has been accomplished, since the average dividend growth rate of this portfolio has been 9.6% in euros and 7.2% in dollars.
See below more details on how the value of this international dividend portfolio has evolved over time.