- ARCP: 38.55 shares @ $12.95 --- Yield 7.72% (initial position-speculative)
- ESV: 9.73 shares @ $51.30 --- Yield 5.85%
- KMI: 15.13 shares @ $32.97 --- Yield 5.09%
- BP: 9.88 shares @ $50.50 --- Yield 4.63%
- VZ: 10.66 shares @ $46.82 ---Yield 4.53% (initial position)
Total capital invested is $2500.00 divided equally amongst all five companies. The combined yield is 5.56% and will increase my dividends by $138.82.
Note: BP dividend yield is based on an increase from $.57 per quarter to $.585 per quarter. This was announced earlier today.
$100/Week Challenge---Week 1
I am pleased to announce that I surpassed $100 for this week. Due to the speculative nature of ARCP, I would like to note without ARCP my dividends will still increase by $100.33 + $16.80 (IBM increase see below).
The only financial sacrifice made this week was when my wife asked me to take our dog to the groomer. By grooming I don't think she expected me to take the dog to the bath tub and wash her myself. :-) Even $45 can add up over time. It's the small sacrifices compounded that yield long term results.
Dividend Increase:
IBM announced today that it will increase its quarterly dividend from $.95 per quarter to $1.10 per quarter. This is a 15.79% increase. Since I own 28 shares my yearly dividends will increase by $16.80.
All in all this has been a good first week.
Just found your site through the DividendMantra blog. I found your transparency and progress reports truly inspirational. I've been toying with the idea of switching my retirement portfolios to an entirely div. growth model having used a permanent portfolio-type strategy for several years. Today I finally took the plunge and sold out of my long-term bonds and gold investments and bought shares in KO, KMI, SDRL, ARCP, O, GE, PG and VZ. We'll see how it turns out for me, but I really wanted that monthly dividend income stream. KMI and KO are my core holdings, btw. Anyway, keep up the good work. I find your blog and others like you very inspirational and encouraging. - beanz
ReplyDeletebeanz,
DeleteThanks for stopping by. It sounds like we have a similar background, I too started with mutual funds looking only at yearly returns as opposed to income growth. It looks like we own many of the same companies.
I must confess that some of my purchases comes within days after reading Dividend Mantra's Recent Purchase articles...ARCP is a blatant example. Lol. His insight and research is outstanding and much appreciated by many.
Good luck on your journey!
MDP
Hey,
ReplyDeletecan you please tell me how much you pay fees per purchase? I just cannot beliebe it - your buying just 450 USD for one purchase. In Europe, I pay ~17 EUR = 23 USD for one purchase, regardless if I buy 500 USD or 3000 USD shares...this is why i never buy below 2500 USD for one purchase, otherwise fees would eat up my yield...
Sure thing. I pay a flat $12 per month to Sharebuilder. This allows me to make 12 purchases per month, but the purchases have to made on Tuesdays and I have to pick the stocks by Monday afternoon. If I choose to purchase more than 12 stocks in a month then each addtional purchase costs $1 per purchase. I hope this helps.
DeleteMDP
I do not think ARCP is too speculative. It may be a bumpy holding, but can turn out well from the long term perspective. Hold it for 20 years and you make money, trust me.
ReplyDeleteMartin,
DeleteI hope you are correct about ARCP not being too speculative. Anytime I see 7.5% or better I get a little nervous, but it definitely is safer at $13 than $18. I bought DLR late last year and it was a high yielder as well. Hopefully these two REITs along with HCP will "pay dividends" for many years.
Thanks for commenting!
MDP
Wow, that's a nice week right there! I considered ARCP at one point, but ran out of room with REIT allocations. I concluded it was borderline speculative, yet it appeared to be worth the risk!
ReplyDeleteCI,
DeleteThanks for the comment. I love the yield, but it reminds me a lot of my junk bond holdings. I will build a small position and then I will be done with my REIT allocation for a while.
MDP