I thought my experiment would have a setback with the downturn in the market, but surprisingly, since my last update, it’s still up.
Dividend Experiment Update
It’s been two months since my last update, and I after some passive thinking, I’ve come to the realization that my goal for the experiment has change on me. I no longer want to spend much on lunch, and going out once a week would be just fine with me. My lunches are now a production time where I work on blogging.
So the question is, should I continue to use the dividends on spending?
I’ve decided yes I should, but instead of lunches, I’m going to spend the money better foods for my family. I will use the money to make more nutritional food at home. I’ve been wanting to expand into this area for a long time, and this money will help both me and my family (at least at a nutritional level).
Dividend Stats.:
| Dividend Stock’s Lunch Experiment | |||||
| 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 | $7.20 | $54.04 | $3.94 | ||
| Orig Cost | $2,038.14 | $1,046.25 | $2,404.80 | ||
| Curr Value | $1,872.00 | $2,431.80 | $2,364.00 | ||
| Annual Yield | 12.22% | 5.63% | 17.26% | ||
| Act. Div/Qtr | $57.20 | $34.20 | $102.00 | ||
| Total Dividends | $773.60 | ||||
| 52 weeks | 52 | ||||
| Dividend / week | $14.88 | ||||
| Total Gain in | |||||
| Stock Apprec. | $1,178.61 | ||||
| % Change | 21.47% | ||||
| Amt Loaned to myself: | $1,726 | ||||
| Amt paid back to date: | $1,726 | ||||
| Amt Still Owned: | $0 | ||||
| Totals | |||||
| Cumulativie Stock Value: | $6,667.80 | ||||
| Dividend Payout / Yr.: | $773.60 | ||||
| Dividend Payout / Qtr: | $193.40 | ||||
| Dividend Payout / Wk. | $14.88 | ||||
On with the Update:
- Overall, the “Total Return” of my investments since investing in 2009 is up 21.47%. Note, the change is not per year, but simply the percentage gain of what was originally invested vs the current value.
- The ”Cumulative Value” of my investments equal $6,667.80! This is money that would have went to the restaurant owner and to the waiter in tips. But now it’s sitting in my brokerage account earning me a dividend!
- With a dividend of $14.88 a week, it appears nice, but it’s based on dividends that may not be sustainable.
Since I’ve change the goal of this experiment, I don’t think I will need as much as I use to need on a weekly basis. So, I’m thinking about shifting some (if not all) of my investments into less risky (from a dividend perspective) stocks. I’ve had a great ride, so I’m not in a rush to do this, but since the goal is more serious, I think that my investments should be too.
As far as the experiment goes, it’s been a great success and exceeded my expectations. The change in my lunch rituals was an unexpected surprise and one that will get me one step closer to a purer state of frugality.
Cheers,
MR