This is an exciting topic for me! I found it hard to find dividend growth portfolios purely based on European dividend aristocrats. And I am not surprised, because living in the European Union gives us some difficult dynamics (i.e. differences in currencies, dividend taxation policies, double taxation treaties and less traditions within European companies to pay a growing dividend).
That’s why I decided to design an example portfolio myself.
Have a look at the portfolio below. I designed the portfolio to provide you about 1000 Euro per month. It consists of some well known and lesser known European Dividend Aristocrats. It also provides you with relatively evenly distributed dividends so that you can match the monthly cash outflow (expenses) with the monthly cash inflow (dividends).
I think that this is a great example of a self-funded freedom dividend.
Thanks for your website. I found the asset allocation very interesting. But I don’t understand why companies like GlaxoSmithKline or Groep Brussel Lambert, that doesn’t appears in your “My future Portfolio Allocation aspiration” list, are inserted here. I mean, I want to build a strong DGI european portfolio, and I think that you did a very good work listing those companies in your wishlist. Why are you then adding here other companies? Would you add them to your own portfolio?
Hi Alberto, the reason is simple: I am investing since 2014 and my focus was first on the typical US companies inspired by the many US bloggers that we have. However, since last year I am more and more looking into European companies, hence why I initiated for the first time positions into Novartis and Danone and I aspire to add more and make it a very strong core. I just need more time to analyze.
Regarding GlaxoSmithKline: I am not adding that one yet, I have already Roche, Novartis and Bayer in my portfolio,, besides also Johnson & Johnson, Abbvie and Medtronic. I find all of those of higher quality except maybe Bayer. I’m not sure yet about that one and I just hope that they clean up the Monsanto mess as quick as possible.
Regarding Groep Brussel Lambert: that one looks very interesting to me and the stock is on my short-list to analyze. Yes, I do consider to add that one to my portfolio once I know what fair-value I assign to the stock.
PS: I am also going to publish my top 30 European Dividend Aristocrats within the upcoming 2 weeks. I also found some other companies which I would really like to own, so I might make further adjustments to my Tier 1 -> Tier 4 list.
Thanks for stopping by!
Just found your web site. Great work!
Regarding your list, taxes in Europe are just too high!
Great insights and good to see the investments of some fellow European DGI out there. As i glanced through your example above though, i cant understand some monthly total dividend payouts…for example in March, it shows approx. 600 euros of payouts and your monthly total is 1332.15 euros. April, June…also completely off…what am i missing?
Thanks!
Hi Jeremie,
I just averaged it to 1000 Euro per quarter based on these companies. I could get more accurate with 1000 Euro per month when choosing some other stocks, but I preferred these as an example.
The main thing is that I wanted to show that it is possible. The stock choices are a bit arbitrary but you can consider all of them dividend growth stocks 🙂