Not much has happened since my last Dividend Stocks, Lunch Experiment #4 update, at least from a dividend yield perspective!
For a background on how I’m going this experiment and why it’s free, click this article: A Lunch Experminent
Actually the weekly dividend amount I get for lunch dropped a bit because ANH dropped their dividend payout amount, again (they have done so for the last few quarters).
On the gains/losses in stock values, EVEP continues to tear up the market by now appreciating up to 60%! I wish I had more in this stock and less in ANH. The newest stock purchase, CIM, has performed very well and I’m fairly happy with it.
I made the purchase in CIM over 3 months ago, and over a year ago for ANH and EVEP! I don’t know if I would buy that same stocks today…
Here is the latest numbers from my spreadsheet:
| 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 | $7.01 | $37.46 | $4.10 | ||
| Orig Cost | $2,038.14 | $1,046.25 | $2,404.80 | ||
| Curr. Value | $1,822.60 | $1,685.70 | $2,460.00 | ||
| Annual Yield | 13.12% | 8.08% | 17.56% | ||
| Quart. Dividend | $59.80 | $34.07 | $108.00 | ||
| Total Dividends | $807.48 | ||||
| 52 weeks | 52 | ||||
| Dividends / week | $15.53 | ||||
| Total Gain in | |||||
| Stock Increase | $479.11 | ||||
| % Change | 8.73% | ||||
| Amt owed to me: | $1,726 | ||||
I borrowed $2,000 from myself to purchase CIM, but it’s been whittled down to $1,726.
Other than the money I borrowed from myself (which at this point I could easily pay back by selling the stocks I have in the experiment), I don’t have any other money contributed to this experiment, so that means that it’s like free money!
So how did money get into the fund?
By skipping on going out to eat with friends at work, I was able to fund this experiment with lunch money! So I took my lunch money from myself (lol).
So, in my eyes, the money in this experiment is literally just play money, because it would have been money that I would have wasted by going out to eat with my friends at work everyday (which they still do, by the way!).
I’m now at the point where I can go out with friends at work at least twice a week. And since I telecommute once a week, I’m really able to go out with friends half of the days that I’m at work!
Not bad considering it hasn’t been a full year that I’ve run the experiment yet! Nov 12, 2010 will have been 1 year of doing this experiment!
What do you think? Is it crazy that I”m in such high yield risky stocks?
Related:
- The post that started this experiment is A Lunch Experminent
- My previous update is here: Dividend Stocks, Lunch Experiment #4, click here?
I don’t think it is crazy at all since you are debt free. I am sure you have plenty ‘less risky’ investments in your retirement and other investment vehicles. You are just balancing your portfolio and having fun along the way- sounds perfect!
Thanks, sometimes I need a voice a reasons to make sure I didn’t fall over into the absured…
This is fun! EVEP is certainly a very sweet spot in your portfolio. I’m glad everything is working out so well.
Risk
It seems your interpretation is that since this is “play” money, you are not risking anything but money that you would have loss anyway. I certainly follow your logic. Plenty of people allocate a small proportion of their portfolio’s for “dabbling” in more risky/high-yield investments.
Thanks Roshawn, it is fun!
I think someday the REIT dividend payout’s percentage will drop again, but I noticed that the stock value historically hasn’t fallen too much from the level that it’s at now. So hopefully, I’ll be good 🙂
EVEP is more a of wild play, they are relatively a newer company, so we’ll see how that one plays out. It is fun watching it’s value rise…
I love the idea of this experiment. Rather than telling your readers, “You need to not eat out at lunch!”
You show them what can be done instead. It will be interesting to see what happens with it in 20 years, if you keep it up!
Thanks!
While I miss having dinner with my friends, the experiment has been a blast!
This is just my first experiment, I have others planned for next year… If I can continue this trend, in 20 years, things will start to look truly great 🙂
Why not sell some really out of the money covered calls? Squeeze a few more bucks out of it?
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