Lunch Budget Experiment Update #3

by

I haven’t talked about my Lunch Experiment or Adult Allowance for quite a while, so I thought it was time for an update!

The REIT stock “ANH” dropped 11% since I bought it, but surprisingly with the dividends received so far, I’ve still even on the amount invested overall…  I also purchased a small position (only 1/2 of what I put in ANH) in a stock “EVEP” (an energy stock) that also provides a dividend. 

The EVEP dividend only pays 8%, but the stock is up almost 40%, so from a total stock evaluation stand point I’m up a combined total of a little over $200.

Okay, to summarize, the valuation of the stocks are actually up which is great, so I can count the dividends from both stocks entirely.  The amount the dividends per week comes to $8.00 (I can only buy soup when I eat out, but it’s a start).

So my experiment so far is successful.  I now generate enough income for 1 day out of the 5 work days for a lunch paid for by the dividends (yes, I know I’m not considering taxes…)!  I decided to keep doing the experiment!  I also decided to diversify into other dividend yielding stocks.  I know that the stock ANH will probably decrease their dividend in the near future, so the more I can diversify the better!

To “prime the pump” I borrowed money from my account to start this, and I’ve been slowly paying myself back.  I still have 8 weeks left, then I will start saving money again for investing in more stocks for my Lunch Experiment!

While the amounts may seem trivial, all great things start out small, and so did this!  You see, this is my first true “Dividend Fund“!!!

Eventually, I plan on creating a Christmas, Vacation and “Real Estate Tax” Dividend Funds!

Have you considered creating such Dividend funds or do you have alternative ideas? 

-MR

Related Posts:

Dividend Stocks, Lunch Experiment Update #4

Lunch Budget Experiment Update #2

Lunch Budget Experiment Update

Paying An Adult Allowance

12 thoughts on “Lunch Budget Experiment Update #3”

  1. I actually am looking into dividend opportunities as we speak, as well as considering diving into an ETF. (Most my investments are mutual funds right now.)

    Good luck with the ‘Money Reasons Dividend Fund’!

  3. @Everyday Tips
    There are some really good ETFs out there too I bet! I’ll have to start looking at those too!

    I had a couple of EFTs, but the ones I chose didn’t have a dividend payout. I will keep those in mind! Good thinking!

  4. @Evan
    I’ve been doing the experiment since Nov 12, 2009 and I’m still trying to get past the “priming the pump” part…

    I’m thinking about change the experiment once I’m able to start saving again. I think I will try and use the $8 to buy the food for packing lunch, and then save all of the money for the next Stock to purchase…

    Hopefully that will speed up the process a bit more ($60 a week)! I don’t think I’ll be able to do it long though, maybe a quarter of the year or 2.

  5. We invest almost all of our Scottrade money into dividend yielding stocks…so far we’ve put in $17,000 I think. We’re still down from the 2008 crash a little, but we’ve made hundreds from our dividends. We let them build up at Scottrade and reinvest in more stock. Good luck with your lunch fund!

  6. @Budgeting in the Fun Stuff
    I have a little spread across the stock market pool, but we do have the largest percentage invested in dividend stocks.

    My “Lunch Experiment” is special though because that money will come from the dividends that will help pay for something (in theory lunch, but it might way for a swimming pools maintenance).

  9. well the market has been down over the last few days so my current investments are down a bit. but prior to that i was on a hot streak where i could buy breakfast, lunch and dinner with the positive growth.

    lets hope things come back soon 🙂

  11. Pingback: Money Weekly Cache 2010, June 27 Cedar Point | Money Reasons

  12. Pingback: Lunch Budget Experiment #2 - Buying the Stock | Money Reasons

Comments are closed.