Archive for the ‘Dividend Income’ Category.

2019-02 Dividend Income Report

Here is the dividend income report for February, 2019.

The monthly dividend income came out to $138.45. The yearly income total for 2019 through the end of the month was $229.17.

The income for February, 2018 was $66.43, and the yearly income for 2018 through the end of February was $126.02.

There is not really a whole lot to say this month. I plan on writing about the indexes tracked by the ETFs I have invested in, as well as a few others. It is good to know what you are buying.

There are some indexes that are made by small shops and their licensed ETFs can have high expense ratios.

Here is a table with the year-to-date amounts, the monthly amounts, and the three- and twelve-month moving averages for each February from 2012 through 2019:

Month YTD Amount 3MMA 12MMA
2019-02 $229.17 $138.45 $847.72 $589.58
2018-02 $126.02 $66.43 $654.60 $581.51
2017-02 $684.93 $466.05 $570.90 $511.78
2016-02 $620.16 $383.08 $524.89 $460.41
2015-02 $567.34 $353.85 $492.40 $375.72
2014-02 $496.28 $336.61 $363.62 $295.33
2013-02 $358.51 $248.39 $348.20 $287.16
2012-02 $497.58 $308.90 $337.51 $264.48

 

Here are the securities and the income amounts for February, 2019:

  • Vanguard Total Bond Market ETF: $40.91
  • Vanguard Total International Bond ETF: $11.25
  • Money Market Fund: $86.29

Big Jim had another good month.

Page from Gelati Gospel, 12th-century illuminated manuscript from the other Georgia, assumed allowed under Fair Use.

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2019-01 Dividend Income Report

Here is the dividend income report for January, 2019.

The monthly dividend income came out to $90.72. The yearly income total for 2019 through the end of the month was $90.72.

The income for January, 2018 was $59.59, and the yearly income for 2018 through the end of January was $59.59.

For this month, I started counting a money market fund I have at one of my brokerage accounts. I was thinking of using the money to buy bond funds. I did some calculations, and I think that I will make just as much leaving it as it is. Plus, they count the income as “dividends” and not “interest”. So this means that I have been undercounting my dividend income for a while.

One event that happened in January is the death of John Bogle. He was and is one of the most important men in finance. Some people say he was one of the greatest men they had ever met. He has certainly helped millions of people save billions of dollars in fees.

For myself, I went from indexing, to individual stocks, back to indexing, although I now invest in indexes for dividend growth stocks, and not the overall market.

He seemed to get into indexing by accident. He was forced out of his company after a bad merger. He started Vanguard, and started indexing because he could not be an active stock picker. But over time he became an investor advocate and moral authority.

Bogle is like Warren Buffett: an advocate for investors. When Berkshire’s 13-F comes out, and a stock is mentioned in it, you know that it is a good investment. Buffett is a stamp of approval. When Buffett passes, who will be a guide for the common man? Perhaps indexing is enough a part of the culture that we do not need an advocate anymore.

Here is a table with the year-to-date amounts, the monthly amounts, and the three- and twelve-month moving averages for each January from 2012 through 2019:

Month YTD Amount 3MMA 12MMA
2019-01 $90.72 $90.72 $818.52 $583.57
2018-01 $59.59 $59.59 $819.32 $614.81
2017-01 $218.88 $218.88 $584.54 $504.86
2016-01 $237.08 $237.08 $550.81 $457.97
2015-01 $213.49 $213.49 $471.54 $374.28
2014-01 $159.67 $159.67 $335.67 $287.98
2013-01 $110.12 $110.12 $348.07 $292.20
2012-01 $188.68 $188.68 $316.66 $256.77

 

Here are the securities and the income amounts for January, 2019:

  • Money Market Fund: $90.72

Big Jim thinks this year is off to a good start.

“Behold The Bridegroom” by Γύζης Νικόλαος (Nikolaos Gyzis) (1842 -1901), on exhibit at the National Gallery in Athens, assumed allowed under Fair Use.

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2018-12 Dividend Income Report

Here is the dividend income report for December, 2018.

The monthly dividend income came out to $2313.99. The yearly income total for 2018 through the end of the month was $6971.76.

The income for December, 2017 was $1837.78, and the yearly income for 2017 through the end of December was $7536.98.

I had my money in individual stocks from 2010 until late 2017. In 2017, I sold almost all of my stocks except RLI, and I put the money into ETFS: domestic and international bonds, domestic and international real estate, domestic and international dividend stocks, and a utilities fund. I bought the ETFs in December of 2017, and got payouts from those funds in late December. So any comparison of the ETF approach with the individual stock approach needs to take into account that I was double-dipping in the markets in December.

I also got some dividends from individual stocks in 2018 even though I had sold in 2017. I guess this is an example of all that ex-date and record date stuff that I do not think long-term investors need to worry about. You can read about that stuff here. I held a lot of the stocks that I bought for five to seven years. I doubt that missing one quarter’s payment will condemn me to eating cat food when I am old.

In December of 2017, I got $816.26 from dividend ETFs. If we subtract that from the 2017 total of $7536.98, we get $6720.72. In 2018, I got $80.74 from individual stocks othe than RLI. Subtracting that from our 2018 total of $6971.76 gives us $6891.02. So 2017 was still my best year up until that point, and I made more with the ETF strategy in 2018 than I made with individual stocks in 2017. It may seem pedantic to these calculations, but I think it is an accurate way of looking at and comparing the two strategies. I don’t change strategies too often.

Or maybe I am changing tactics because I am still investing mostly in dividend growth companies, but just doing it in a different, more indirect way.

I did not re-invest all the money I got from selling the individual stocks, so I could have done better in 2018 than I did. I might put that money into a commodities fund, a yieldco fund, or an insurance company ETF.

One of the reasons I kept RLI is I think the insurance industry will do well going forward. Insurance against damage caused by climate change will be in high demand going forward. I will have to look into this more. RLI did lose money due to hurricane claims. But my shares are worth a lot more than I paid for them, both due to capital gains and reinvesting dividends.

One thing I like about this approach is that it is a lot less work. I track my money in GnuCash, and I also have a spreadsheet for my investments; there are some things that I do not know how to do in GnuCash, like moving averages, and I have formulas to compare the value of the shares against what is spent, and a few others. I used to keep track of when companies have press releases announcing their dividends, and what the record and payout dates were. I used to have to enter in a LOT of information for all the stocks I was in. Now there is a lot less.

On the other hand, I wonder if this will help me stay afloat when I am older. This has been a concern for a while. My income is increasing by about $500 to $1000 a year. This includes new money into my IRA and from more shares from re-invested dividends. I guess I thought there would be some acceleration at some point, but it does not seem to be happening.

Here is a table with the year-to-date amounts, the monthly amounts, and the three- and twelve-month moving averages for each December from 2011 through 2018:

Month YTD Amount 3MMA 12MMA
2018-12 $6971.76 $2313.99 $1165.08 $580.98
2017-12 $7536.98 $1837.78 $913.40 $628.08
2016-12 $6076.53 $1027.76 $605.28 $506.38
2015-12 $5472.07 $954.52 $575.86 $456.01
2014-12 $4438.02 $909.86 $481.67 $369.80
2013-12 $3406.20 $594.59 $344.05 $283.85
2012-12 $3585.01 $686.10 $386.41 $298.75
2011-12 $3091.99 $514.94 $323.40 $253.92

Here are the securities and the income amounts for December, 2018:

  • Vanguard Total Bond Market ETF: $39.41
  • Vanguard Total International Bond ETF: $10.59
  • Vanguard REIT ETF: $199.20
  • Vanguard Utilities ETF: $209.32
  • Vanguard Dividend Appreciation ETF: $234.77
  • RLI Corp: $30.75
  • RLI Corp: $139.79
  • Vanguard Total Bond Market ETF: $40.80
  • Vanguard Total International Bond ETF: $223.82
  • Vanguard International Dividend Appreciation ETF: $47.82
  • Vanguard Global ex-US Real Estate ETF: $279.54
  • Vanguard High Dividend Yield ETF, Rollover IRA: $302.29
  • Vanguard High Dividend Yield ETF, Roth IRA: $451.20
  • Vanguard International High Dividend Yield ETF: $104.69

RLI paid a regular dividend of $0.22, and a special dividend of $1.00. Vanguard Total Bond Market ETF and Vanguard Total International Bond ETF each had two payouts in December. For some reason bond funds have two payouts in December and none in January. I hold shares of Vanguard High Dividend Yield ETF in two separate accounts.

Big Jim had a pretty good year.

Image  from Wikimedia, assumed allowed under Fair Use. Painting “Aparición de la Virgen a San Isidro sobre el cielo de Bolonia” by Francisco José de Goya y Lucientes, or just Goya (1746-1828). Goya does have a website, although this painting is not on it.

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2018-11 Dividend Income Report

Here is the dividend income report for November, 2018.

The monthly dividend income came out to $50.86. The yearly income total for 2018 through the end of the month was $4657.77.

The income for November, 2017 was $560.60, and the yearly income for 2017 through the end of November was $5699.20.

Over the past year, I have moved most of my money into dividend growth ETFs. I have not paid as much attention to individual stocks. I have not downloaded the U.S. Dividend Champions spreadsheet every month since I switched from stocks to ETFs.  I found out that the original maintainer, David Fish, died recently. See articles on Seeking Alpha here by Mike Nadel  and here by Abby Carmel. It is now updated by Justin Law. The writer at Dividend Growth Investor also puts out their own version of the Dividend Champions spreadsheet. In fact, it was at Dividend Growth Investor that I first heard about the death of David Fish.

One of the tributes on Seeking Alpha said that David Fish did not like the idea of telling people what to buy. A few times people have asked me about investing, and I told them about DGI and the Champion spreadsheet. That alone could guide someone’s investment plan.

The Dividend Champion list divides companies into three categories depending on how long they have been raising their dividends: Champions (25 or more years), Contenders (10 to 24 years), and Challengers (5 to 9 years). Even if you using just ETFs (as I am), it is still a good idea to look at this list once in a while because it will tell you how many companies are raising dividends, and in my opinion give you a tool to gauge the health of the economy. Here is a table for the breakdown of CCC companies for every December from 2010 to 2018.

Year Champions Contenders Challengers Total
2018 865 130 200 535
2017 815 113 222 480
2016 764 107 226 431
2015 753 106 253 394
2014 589 105 246 238
2013 471 105 211 155
2012 466 106 180 180
2011 449 102 145 202
2010 417 98 129 190

Look at that. Mostly increasing numbers. While Obama was president. I guess our not-so-liberal media is wrong when they tell us that things go better with the GOP in charge.

One issue with dividend investing is how it will do in a downturn. It did well in the past two downturns, so I think there is a good chance it will do well in the next. Mike Nadel mentions this in his remembrance of David Fish. He mentions an article in the New York Times saying DGI is not a great strategy since companies could cut dividends when the economy contracts. He wrote a rebuttal, inspired by something David Fish wrote to him: Actually, more than 70% of companies that were Dividend Champions back in 2007 continued to raise dividends through the recession, and another 9% merely froze their dividends. So approximately 80% did NOT cut their dividends.

The funny thing is that if the economy contracts, indexing will not do well either. Nor would active stock picking. It seems like it is the people who push buybacks and capital gains who speak of the benefits of their strategies in terms of absolutes, and ignore the times their strategies do not work. The DGI crowd talks about probabilities. It is a better way to approach life.

Here is a table with the year-to-date amounts, the monthly amounts, and the three- and twelve-month moving averages for each November from 2011 through 2018:

Month YTD Amount 3MMA 12MMA
2018-11 $4657.77 $50.86 $562.56 $541.30
2017-11 $5699.20 $560.60 $559.31 $560.58
2016-11 $5048.77 $506.98 $502.98 $500.27
2015-11 $4517.55 $460.83 $477.55 $452.28
2014-11 $3528.16 $291.27 $357.30 $343.53
2013-11 $2811.61 $252.75 $277.74 $291.48
2012-11 $2898.91 $247.99 $262.78 $284.49
2011-11 $2577.05 $246.37 $232.84 $240.81

Here are the stocks and the income amounts for November, 2018:

  • Vanguard Total Bond Market ETF: $39.79
  • Vanguard Total International Bond ETF: $11.07

Big Jim wishes he could have thanked David Fish while he had the chance.

“Pegasus Departing” by Albert Pinkham Ryder (1847 – 1917) at the Smithsonian Museum,  assumed allowed under Fair Use.

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2018-10 Dividend Income Report

Here is the dividend income report for October, 2018.

The monthly dividend income came out to $1130.39. The yearly income total for 2018 through the end of the month was $4606.91.

The income for October, 2017 was $341.83, and the yearly income for 2017 through the end of October was $5138.63.

So I am behind where I was last year, but still ahead of where I was two years ago.

Again, the payouts from some of the funds that should have been at the end of a “C” month spilled over into the following “A” month. I doubt that December’s payout will spill over into January.

I interviewed for a job this month. I decided not to go forward with it for a variety of reasons. This means my current 401(k) is still sitting in ordinary index funds, not in dividend funds. I am still learning new technology on my own time, but on the other hand I am in no rush to add stress to my life. Still, having all that money in dividend funds would be sweet.

I asked HR if I could move it, and they said I could only take it out if/when I leave the company. I wish I could leave for a week, move it, and come back.

We shall see how dividends do going forward. I know it is hip to predict disaster, but between trade wars, Brexit, general conservative stupidity and rising interest rates, it is obvious the good times will not last forever. How will dividends do during the next recession? Who knows? They generally do better than the general market (they did in the dot com crash and the Great Recession), but every downturn is different.

I might hold off on buying a commodities fund. I have no idea how commodities do during downturns. My first guess if they don’t do too badly. People still need to eat. But I also know I am not an expert on this stuff.

Here is a table with the year-to-date amounts, the monthly amounts, and the three- and twelve-month moving averages for each October from 2011 through 2018:

Month YTD Amount 3MMA 12MMA
2018-10 $4606.91 $1130.39 $561.66 $583.77
2017-10 $5138.63 $341.83 $566.34 $556.11
2016-10 $4541.79 $281.09 $508.05 $496.43
2015-10 $4056.72 $312.23 $459.42 $438.15
2014-10 $3236.89 $243.87 $368.19 $340.32
2013-10 $2558.86 $184.81 $295.19 $291.08
2012-10 $2650.92 $225.14 $285.46 $284.35
2011-10 $2330.68 $208.90 $258.17 $238.44

Here are the stocks and the income amounts for October, 2018:

  • Vanguard Dividend Appreciation ETF: $201.69
  • Vanguard International Dividend Appreciation ETF: $33.05
  • Vanguard Global ex-US Real Estate ETF: $50.03
  • Vanguard High Dividend Yield ETF: $272.77
  • Vanguard High Dividend Yield ETF: $407.14
  • Vanguard International High Dividend Yield ETF: $117.99
  • Vanguard Total Bond Market ETF BND ETF: $37.46
  • Vanguard Total International Bond ETF: $10.26

Big Jim is still growing.

“The Triumph of Religion” by Γύζης Νικόλαος (Nikolaos Gyzis) (1842 -1901), assumed allowed under Fair Use. Religion is not endorsed by this website; we actually advocate people abandon fairy tales. It’s just a nice change of pace from walls of text.

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2018-09 Dividend Income Report

Here is the dividend income report for September, 2018.

The monthly dividend income came out to $506.44. The yearly income total for 2018 through the end of the month was $3476.52.

The income for September, 2017 was $775.50, and the yearly income for 2017 through the end of September was $4796.80.

I did not buy the iShares Commodities Select Strategy ETF. I think that because it is a commodities fund, I have to sign my life away before my broker will let me buy it. I would like to talk to someone at my broker about it, but their office hours are while I am at work.

Only a few of my non-bond ETFs paid out this month. Most of them are spilling over into next month. That should help my averages.

Here is a table with the year-to-date amounts, the monthly amounts, and the three- and twelve-month moving averages for each September from 2011 through 2018:

Month YTD Amount 3MMA 12MMA
2018-09 $3476.52 $506.44 $430.49 $518.06
2017-09 $4796.80 $775.50 $562.76 $551.05
2016-09 $4260.70 $720.86 $505.47 $499.02
2015-09 $3744.49 $659.59 $443.06 $432.46
2014-09 $2993.02 $536.75 $353.04 $335.39
2013-09 $2374.05 $395.65 $293.78 $294.44
2012-09 $2425.78 $315.21 $283.66 $283.00
2011-09 $2121.78 $243.26 $256.81 $233.01

Here are the stocks and the income amounts for September, 2018:

  • Vanguard Total Bond Market ETF: $38.23
  • Vanguard Total International Bond ETF: $10.35
  • RLI Corp: $30.67
  • Vanguard REIT ETF: $236.59
  • Vanguard Utilities ETF: $190.60

Big Jim’s path to riches sometimes feels very slow.

Le chat angora”  by Jean-Honoré Fragonard (4 April 1732 – 22 August 1806) , assumed allowed under Fair Use.

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2018-08 Dividend Income Report

Here is the dividend income report for August, 2018.

The monthly dividend income came out to $48.14. The yearly income total for 2018 through the end of the month was $2970.08.

The income for August, 2017 was $581.69, and the yearly income for 2017 through the end of August was $4021.30.

There is not much to report. The only funds that paid out were the bond funds. I did go through the prospectus for the iShares Commodities Select Strategy ETF. I have not pulled the trigger yet, but I think I will buy some shares.

Here is a table with the year-to-date amounts, the monthly amounts, and the three- and twelve-month moving averages for each August from 2011 through 2018:

Month YTD Amount 3MMA 12MMA
2018-08 $2970.08 $48.14 $549.51 $540.48
2017-08 $4021.30 $581.69 $558.23 $546.50
2016-08 $3539.84 $522.20 $493.44 $493.92
2015-08 $3084.90 $406.45 $427.26 $422.22
2014-08 $2456.27 $323.94 $348.41 $323.64
2013-08 $1978.40 $305.11 $279.05 $287.74
2012-08 $2110.57 $316.04 $280.53 $277.00
2011-08 $1878.52 $322.35 $254.56 $225.45

Here are the stocks and the income amounts for August, 2018:

  • Vanguard Total Bond Market ETF: $37.98
  • Vanguard Total International Bond ETF: $10.16

Big Jim likes bond funds, because some months he has nothing else to like.

“The Archangel, study for the Grounding of Faith” by Γύζης Νικόλαος (Nikolaos Gyzis) (1842 -1901), on exhibit at the National Gallery in Athens, assumed allowed under Fair Use.

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2018-07 Dividend Income Report

Here is the dividend income report for July, 2018.

The monthly dividend income came out to $736.90. The yearly income total for 2018 through the end of the month was $2921.94.

The income for July, 2017 was $331.08, and the yearly income for 2017 through the end of July was $3439.61.

A few of the funds I own paid out in July instead of June. Looking at past payout dates on Vanguard’s site, this does not happen very often.

I have still not re-invested all of the money that I had in individual stocks before I switched to ETFs. I also do not have some asset classes covered. I will write about this later.

I mentioned a few months back that I might be leaving my employer soon. That is looking more likely. I work for one of the large consulting firms that split off from one of the big accounting firms. We do work for just about every industry. This project was for a state government (not the state I live in).There were some announced cutbacks on the project I am on; they planned on “rolling off” four people. Two got clawed back. Two of us were not. At this point, I am kind of done.

It is funny that the term they use for someone leaving a project is “rolling off”: “John is rolling off the project next month.” They never use the passive voice, as if it is always the person’s choice.

Here is a table with the year-to-date amounts, the monthly amounts, and the three- and twelve-month moving averages for each July from 2011 through 2018:

Month YTD Amount 3MMA 12MMA
2018-07 $2921.94 $736.90 $548.35 $584.94
2017-07 $3439.61 $331.08 $541.56 $541.54
2016-07 $3017.64 $273.36 $464.99 $484.27
2015-07 $2678.45 $263.13 $412.44 $415.35
2014-07 $2132.33 $198.43 $333.77 $322.07
2013-07 $1673.29 $180.57 $258.23 $288.65
2012-07 $1794.53 $219.72 $261.24 $277.53
2011-07 $1556.17 $204.83 $235.96 $211.69

Here are the stocks and the income amounts for July, 2018:

  • Vanguard Dividend Appreciation: $227.79
  • Vanguard International Dividend Appreciation: $111.62
  • Vanguard Global ex-US Real Estate: $145.52
  • Vanguard Utilities ETF: $205.46
  • Vanguard Total Bond Market ETF: $36.71
  • Vanguard Total International Bond ETF: $9.80

Big Jim likes dividend ETFs, but he doesn’t like the inconsistency in the payouts.

“The Glory of Psara” by Γύζης Νικόλαος (Nikolaos Gyzis) (1842 -1901), on exhibit at the National Gallery in Athens, assumed allowed under Fair Use.

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2018-06 Dividend Income Report

Here is the dividend income report for June, 2018.

The monthly dividend income came out to $863.49. The yearly income total for 2018 through the end of the month was $2185.04.

The income for June, 2017 was $761.91, and the yearly income for 2017 through the end of June was $3108.53.

A few of the funds I own have payout dates in July instead of June. Looking at past payout dates on Vanguard’s site, they only pay out late for the second quarter.

Here is a table with the year-to-date amounts, the monthly amounts, and the three- and twelve-month moving averages for each June from 2011 through 2018:

Month YTD Amount 3MMA 12MMA
2018-06 $2185.04 $863.49 $319.68 $551.12
2017-06 $3108.53 $761.91 $539.42 $536.73
2016-06 $2744.28 $684.76 $464.00 $483.42
2015-06 $2415.32 $612.21 $411.83 $409.95
2014-06 $1933.90 $522.86 $333.10 $320.58
2013-06 $1492.72 $351.48 $257.79 $291.91
2012-06 $1574.81 $305.84 $260.85 $276.29
2011-06 $1351.34 $236.50 $235.38 $203.23

Here are the stocks and the income amounts for June, 2018:

Vanguard Total Bond Market ETF: $37.36
Vanguard Total International Bond ETF: $9.57
RLI Corp: $30.57
Vanguard REIT ETF: $150.00
Vanguard High Dividend Yield ETF: $191.42
Vanguard High Dividend Yield ETF: $253.93
Vanguard International High Dividend Yield ETF: $190.64

Big Jim likes the big payouts.

Letter from Arghun (1258-1291), leader of Ilkhanate to Philip IV of France (1268-1314), written1289; image from Wikipedia, assumed allowed under Fair Use.

 

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2018-05 Dividend Income Report

Here is the dividend income report for May, 2018.

The monthly dividend income came out to $44.66. The yearly income total for 2018 through the end of the month was $1321.55.

The income for April, 2017 was $531.68, and the yearly income for 2017 through the end of May was $2346.62.

Once again, the only income came from bond funds. The stock ETFs only pay on “C” months. So far the twelve-month moving average is still doing okay. Still, I have moments where I wonder if I did the right thing.

Looking at the past payouts on Vanguard’s site, some of the international funds should have some big payouts soon. They might not pay out until July. I might also buy more shares in VYM in my rollover. I might go up to 1000 shares. That might work out to about 25 shares a year.

My employment situation is up in the air. I might be leaving my company in a few months. Obviously this has a downside of no more income. But I will have a lot of money to put into my rollover. And more time for meditation.

Here is a table with the year-to-date amounts, the monthly amounts, and the three- and twelve-month moving averages for each May from 2011 through 2018:

Month YTD Amount 3MMA 12MMA
2018-05 $1321.55 $44.66 $398.51 $542.66
2017-05 $2346.62 $531.68 $553.90 $530.30
2016-05 $2059.52 $436.85 $479.79 $477.37
2015-05 $1803.11 $361.99 $411.92 $402.51
2014-05 $1411.19 $280.01 $304.77 $306.30
2013-05 $1141.24 $242.65 $260.91 $288.11
2012-05 $1268.97 $258.15 $257.13 $270.51
2011-05 $1114.84 $266.55 $233.03 $194.61

Here are the stocks and the income amounts for May, 2018:

Vanguard Total Bond Market ETF: $36.01
Vanguard Total International Bond: $8.65

Big Jim likes bond funds.

“The Valley of the Nervia” by Claude Monet (14 November 1840 – 5 December 1926); image from the Metropolitan Museum of Art, assumed allowed under Fair Use.

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