With the site having a few posts already I thought I’d go ahead and catalog my progress so far. Below is a snapshot of my portfolio via TD Ameritrade. After two VERY volatile years I am seeing capital gains across the board. The only blemish is EXG. This is an Eaton Vance income fund. They write covered calls and reward shareholders with premiums. This translates to nearly a 1% dividend payment per month. Even though the payments are quite favorable, capital gains aren’t a priority for this ETF. With that in mind, I’ve taken a small capital loss. This capital loss is magnified when the payments are dripped back into the security. Overall, I purchased 250 shares of EXG for a total cost of approximately $2555. I now have 294.595 shares valued at $2518.
Everything else is looking fantastic! The gain ($) on the right hand side doesn’t even take into account gains from dividends. For example, I have earned much more than $34 from Proctor and Gamble. This interface failed to take into account over two years of dividend payments. Furthermore, the income earned by these various investments continues to grow.
As you can see under “Qty” I have fractional shares. These fractional shares earn additional dividends! So essentially I buy a stock. The dividends from that stock get reinvested. The next quarter, the payment is higher, and the dividends again are reinvested. This cycle continues. In my case I’ve picked some great companies who also INCREASE their dividends. This year I saw several healthy dividend increases across my portfolio. For instance, Fastenal is now paying $0.30 per quarter; 7% more than last year. So again, dividends are reinvested. And then comes the DIVIDEND INCREASE!
This is why I continue to see rising income in my portfolio. Quarterly dividends are reinvested, the company raises the dividend, and the income increases even more. The above snapshot represents less than 50% of my total portfolio. I am in the process of dollar cost averaging my savings into the market. This is helping me to hedge against the market’s volatile nature. I’d hate to throw in 100% and have the market take a sharp downturn.
Anyway, I will continue to post updates, purchases, and reallocations. Later I will produce a spreadsheet that will track my securities on a day-to-day basis.