Well, it’s time for another update! The dividend payout rates have not changed and the overall appreciation of the stocks has raised!
The Free Lunch Experiment, which invests in dividend stocks, is my first true experiment here at MoneyReasons.com and was started with the article called: “Paying An Adult Allowance, A Lunch Experiment”.
In a nutshell, the experiment is that I want focused investments in certain dividend stocks to pay for my lunch when I go out to eat at work.
The real advantage is that the money I’m investing in, is money that I would have spent for lunch anyway. In my opinion, this make this money free because it would have been spent! So if I were to lose all of the money tomorrow, I would be sad, but it’s money that I wouldn’t have had anyway had I not started the experiment. In other words, the first dollar saved was a 100% gain on what I had previously, which was a spent dollar.
So much like the reference in the movie “Blade“, the Lunch Experiment has all of the advantages, and not of the disadvantages of being an stock dividend investment.
| Stock Name | Anworth | EV Energy | Chimera | ||
| Stock Ticket | ANH | EVEP | CIM | ||
| # of Shares | 260 | 45 | 600 | ||
| Orig. Price | $7.84 | $23.25 | $4.01 | ||
| Curr. Price | $7.14 | $38.25 | $4.13 | ||
| Orig Cost | $2,038.14 | $1,046.25 | $2,404.80 | ||
| Curr Value | $1,856.40 | $1,721.25 | $2,478.00 | ||
| Annual Yield | 12.89% | 7.92% | 17.43% | ||
| Actual Dividend | $59.80 | $34.07 | $108.00 | ||
| Total Dividends | $807.48 | ||||
| 52 weeks | 52 | ||||
| Dividend / week | $15.53 | ||||
| Total Gain in | |||||
| Stock Apprec. | $566.46 | ||||
| % Change | 10.32% | ||||
| Amt Loaned to myself: | $1,726 | ||||
| Amt paid back to date: | $1,139 | ||||
| Amt Still Owned: | $587.00 | ||||
Previous Update: Dividend Stocks, Lunch Experiment Update #5
Thanks for following me and my “free lunch” experiment!
-MR
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Don’t you love ‘free’ money! I bet it makes you enjoy a little bit more.
I kind of do this with my blog money. It goes straight into a vacation fund. So, vacation is ‘on me’ for the year!
By the way, I love the company name ‘Chimera’. I may invest in it just for the name.
Yes, “It’s all gravy” like that old saying goes 🙂
I can put it all in typewriters stock if I want and I won’t miss it at all. hehe, it’s a free lunch, a golden ticket… I’m having too much fun typing these old saying… 😀
All joking beside, if I needed that money or it was designated for something important, I would be much more conservative in my approach…
That’s a tidy sum! I hold Annaly… as long as the interest rates are low, all’s good!
Experiments that pay, love it!
I like NLY too!
Yeah, this experiment is probably the only that the stocks that could go to zero and I wouldn’t feel bad!
I agree. “It’s all gravy.” I love seeing someone do this “right!”
Thanks Shawn 🙂
It’s been fun, especially seeing EVEP go up in value so much!
It’s some of the few investments that I have that is stress free…
Excellent approach to dividend investing. I am sure you share the same feelings when you see those dividends enter your account!
I will be adding continuously to my dividend stream as I clear profits along the way.
Yeah, it’s great! I have regular stocks that yield dividends too, but this is a focused experiment. I don’t even know if I should call it an experiment anymore since it’s over 1 year old now 🙂
Are you letting dividends compound? or are you taking them out to actually buy lunch lol
Naw, I’m re-investing it, but it’s nice knowing that if I wanted it buy me lunch if I wanted.
That said, last year some of the money from this investment did buy water for a swimming pool (not mine, for my father-in-law’s pool). That was well worth it though! The kids had a blast over there all summer long!