Yearly Passive Income Breakdown: A Look at December 2024
As we step into the new year, it's an opportune moment to reflect on the passive income generated in the preceding year. This article summarizes my total passive income for 2024, focusing on dividends from my investments and premium bond prizes. Additionally, I will share insights into trades made during December and provide a glimpse of my ongoing investment strategy.
December Passive Income Overview
December tends to be a fruitful month for my portfolio as many of my exchange-traded funds (ETFs) pay out dividends.
The first fund in the spotlight is VEV, which provides exposure to over 2,000 stocks in developed markets. This ETF saw a substantial price increase of 18.6% this year, and its 1.5% dividend yield is divided into four payments. In December, it yielded £30.
Next is VWL, which, like VEV, is similar but includes emerging markets. VWL’s price increased by 23.5% this year with the same 1.5% dividend yield, totaling another £30 payout in December.
Moving on to VHL, which focuses on higher dividend-paying companies across more than 1,700 global stocks. While its yearly price increase was modest at 6.8%, its 3.3% dividend added up to £65 received this month.
In contrast, BP, despite a decline of 18.6%, provided the highest single payout of the month at £360 due to its 6.4% dividend.
Premium Bonds Overview
Shifting focus to premium bonds, where the prize rate now stands at 4%. December saw me collect a total of £175 from three prizes, though I lamented not hitting the jackpot of a million.
Total Passive Income
In conclusion, my total passive income for December reached a solid £2,160. However, the tax implications inevitably make their appearance. Due to exceeding the non-ISA dividend allowance of £500, I had to pay £45 in taxes this month.
For the entire year, my net passive income turned out to be £8,465, derived from various sources: £1,615 from share dividends and £1,550 from premium bonds. The average yield from my portfolio stood at 3.3%, showing a solid return on investment.
Investment Strategy Moving Forward
As we bid farewell to 2024, I remain optimistic about the coming year. I’ve made some strategic purchases recently, including adding to my S&P 500 ETF, solidifying my stake in the London Stock Exchange Group, investing in Diageo, and acquiring shares in Aviva due to its respectable dividend yield.
In summary, my investing journey continues, and I look forward to sharing further updates and insights throughout 2025. Happy investing!
Part 1/5:
Yearly Passive Income Breakdown: A Look at December 2024
As we step into the new year, it's an opportune moment to reflect on the passive income generated in the preceding year. This article summarizes my total passive income for 2024, focusing on dividends from my investments and premium bond prizes. Additionally, I will share insights into trades made during December and provide a glimpse of my ongoing investment strategy.
December Passive Income Overview
December tends to be a fruitful month for my portfolio as many of my exchange-traded funds (ETFs) pay out dividends.
ETF Income
Part 2/5:
The first fund in the spotlight is VEV, which provides exposure to over 2,000 stocks in developed markets. This ETF saw a substantial price increase of 18.6% this year, and its 1.5% dividend yield is divided into four payments. In December, it yielded £30.
Next is VWL, which, like VEV, is similar but includes emerging markets. VWL’s price increased by 23.5% this year with the same 1.5% dividend yield, totaling another £30 payout in December.
Moving on to VHL, which focuses on higher dividend-paying companies across more than 1,700 global stocks. While its yearly price increase was modest at 6.8%, its 3.3% dividend added up to £65 received this month.
Part 3/5:
The IA ETF, tracking the S&P 500, exhibited an impressive 26% increase in price this year and provided a £130 payout from a 1% dividend yield.
Individual Stock Dividends
In mid-December, HSBC paid out £135 after a price increase of 23.1% and a commendable 6.2% dividend yield.
BAE Systems contributed £150, yielding 2.8%.
The ISF, which traces the FTSE 100, rewarded investors with £170 despite its annual price increase being limited to 5.2% and a 4% dividend.
A standout was Imperial Brands, which not only surged by 41% but also yielded a £255 payout due to a 6% dividend.
Unilever and Shell followed suit with dividends of £320 and £340, respectively.
Part 4/5:
In contrast, BP, despite a decline of 18.6%, provided the highest single payout of the month at £360 due to its 6.4% dividend.
Premium Bonds Overview
Shifting focus to premium bonds, where the prize rate now stands at 4%. December saw me collect a total of £175 from three prizes, though I lamented not hitting the jackpot of a million.
Total Passive Income
In conclusion, my total passive income for December reached a solid £2,160. However, the tax implications inevitably make their appearance. Due to exceeding the non-ISA dividend allowance of £500, I had to pay £45 in taxes this month.
Part 5/5:
For the entire year, my net passive income turned out to be £8,465, derived from various sources: £1,615 from share dividends and £1,550 from premium bonds. The average yield from my portfolio stood at 3.3%, showing a solid return on investment.
Investment Strategy Moving Forward
As we bid farewell to 2024, I remain optimistic about the coming year. I’ve made some strategic purchases recently, including adding to my S&P 500 ETF, solidifying my stake in the London Stock Exchange Group, investing in Diageo, and acquiring shares in Aviva due to its respectable dividend yield.
In summary, my investing journey continues, and I look forward to sharing further updates and insights throughout 2025. Happy investing!