Sunday, 5 February 2012

Dividend Progress Report: January 2012 Edition

This is the first update of the year for the new series where I keep you guys posted on my dividend income. Maybe I've been busy with life or I feel that I can't find good deals, but for the first month of 2012, I didn't make any purchases. This is very unlike me, especially since I'm sitting on a little bit of cash. I usually just throw whatever I can into my portfolio (I heard compounding is suppose to be pretty good) but I feel that the more important factor is that I shouldn't overpay for anything. Anyway, because of the fact that I didn't change anything in my portfolio, all the numbers are the same.

On track for an annual dividends return of - $1375.35
Total yield of portfolio - 5.36%
Actual dividends received - $112.08
Expected dividends return if the current positions are held for 1 year - $1375.35

The difference between the first number and the fourth number is that as the year progresses and I add positions to my portfolio, I'll naturally be missing some distributions. The first number will show how much I expect to get at the end of the calender year while the fourth number shows how much I would have got if I had my positions since the beginning of the year. Having the two numbers will show how much of an impact time has on investing. As I collect more data, I'll start plotting a graph to help visualize my progress.

For the month of January, I received $112.08 which isn't bad seeing as I just sat on my hands and did nothing all month. By the end of February I'll set up a nice chart to help visualize my progress. If things keep going the way they are, then I may end up having a lot of cash since I seem to be reluctant to buy shares. This could result in huge opportunity costs. I actually want to be as invested as possible, but I can't bring myself to buy shares when they are going up. "Buying high and selling low" doesn't sound like a good plan to me. This is why I think DRIPs may be the solution since I'll be investing albeit less in case the market never gets back to levels we saw at the end of last year. On the flip side, if things do turn ugly, I'll have money on the sidelines waiting. I need more time to think about it, but first I have to survive midterms. Wish me luck.

-the Paperboy

No comments:

Post a Comment