Reaping Dividends: June 2016 report
July 6, 2016
Building up a portfolio that throws off anything like real income in annual dividend income is challenging. We need a lot more capital invested.
To add to that challenge, as I shared at the Jolly Ledger recently, I have some rules.
- I’m a long position investor, otherwise known as buy and hold.
- It cannot be built on blood money. Companies need to conduct their businesses in a way that would make me want to work for them. Disclaimer: I aim to invest in ethical companies as far as is practicable – I’m not an expert and don’t have an army of researchers at my fingertips to confirm that all my choices are good but I’m doing my best.
- I won’t invest in tobacco or gun companies. Even though I do not disapprove of gun ownership in principle, the way this country is unduly influenced by the NRA and gun lobby isn’t acceptable. There’s a difference between short term mistakes and long term wrongdoing or simply being harmful and the gun lobby has long ago crossed over to the dark side.
I wouldn’t feel comfortable working for any of those companies as a direct employee, no matter how nice a salary I could pull down, so I’m not sure how I’d justify owning it in my portfolio. It’s much like how it doesn’t make sense to me that the University of California system was holding stock in the prison system in their portfolio.
And now, the updates!
Year to Date Dividends: $231.00, Fees: $9.90, Net: $221.10
My brokerage is TradeKing, I’ve been very happy with their low fees and service.
The first half of 2016 has been all kinds of volatile. The recent Brexit Leave vote made for an extra bad week globally. I wish I’d moved sooner but I was mesmerized by all the bad news and watching the stocks plummet. I can’t decide if it’s worth sharing specifics of my portfolio or if that’s a bad thing, so for now, I’m going to be general. Let me know if you think it does or doesn’t have value to you as a reader. I’m not recommending stocks, mind you, and don’t want to give that impression.
- My Financial Services Stock #1 dropped more than 10% from my previous purchase price so I bought more. Reminder: dollar cost averaging is a good thing. I have confidence in the company in the long-term and this lowers my average purchase price by $5 per share.
- In a departure from my usual strategy, I picked up an automaker stock. There was a time I wouldn’t have touched an auto stock, like an airline stock, but this was a spontaneous Buy based on the company’s recent moves to be more flexible with their suppliers, and moving with the times on technology. This surprised PiC, and honestly me too, but I thought I’d see what comes of it in 2 years. We’ll see if my instincts pan out or if the Brexit vote tanked that experiment.
For perspective, I like to think of the dividends investing project in terms of how much of our income it can replace, or how much of our fixed expenses it can cover.
At a whopping $221.10, this year’s dividends can pay 20% of one month’s mortgage.
:: How do you invest? Have you peered at your portfolio this quarter?
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